Ethereum's Standout Performance
In the dynamic world of crypto markets, recent trends have illuminated intriguing divergences in the altcoin market, particularly between ethereum and solana, relative to bitcoin. A comprehensive report published by Glassnode, an onchain analytics firm, delves into this phenomenon.
In the latest edition of Glassnode's "The Week Onchain," Alice Kohn's research, published on Jan. 23, 2024, highlights ethereum's (ETH) standout performance, marked by a notable surge in derivatives market activity, and the impressive journey of solana (SOL), especially post-bitcoin exchange-traded fund (ETF) approval. Ether has recently outshone bitcoin, recording its strongest performance since late 2022. Kohn's report notes a surge of over 20% in ethereum's value relative to bitcoin, coinciding with a revitalized interest in ethereum's derivatives market.
Solana's Impressive Journey
This resurgence, signaling a potential shift in capital flows, has led to increased speculation about a forthcoming spot-based ethereum ETF. However, despite these gains, ethereum still trails behind the broader altcoin market in terms of momentum, underperforming by 17%. Solana, on the other hand, has charted a different course, Glassnode's report details. SOL witnessed exceptional price performance last year, despite setbacks linked to its association with FTX.
SOL has significantly outperformed ETH in this period, with the SOL/BTC ratio increasing by 290% since October 2023. Interestingly, unlike ETH, solana's price did not experience a significant revaluation following the BTC ETF approvals, as Glassnode's Kohn suggests a divergent market response to broader sector movements. The broader altcoin market, as a whole, has seen nearly a 69% increase in market cap since the filing of the Blackrock Bitcoin ETF.
The Rise of Altcoin Season
On Jan. 14, 2024, Bitcoin.com News highlighted that blockchaincenter.net's Altcoin Season Index indicated the commencement of altseason. The index continues to declare it is "altcoin season," with the leading 50 coins outperforming BTC in the previous season (90 days). Glassnode's Kohn emphasized that the trend is primarily driven by tokens related to ethereum scaling solutions such as Optimism, Arbitrum, and Polygon. Staking and Gamefi tokens also outperformed BTC in the early stages of 2023, indicating a varied appetite for risk across different altcoin sectors.
Kohn's research stresses the importance of these developments: "The approval of the new bitcoin ETFs has become a classic sell-the-news event, leading to a tumultuous few weeks in the market." Glassnode says that ethereum has emerged as the short-term winner, with investors recording a multi-year high in net realized profits. This suggests a growing willingness to engage in speculative activities, particularly concerning an ETH ETF and capital rotation.
What do you think about Glassnode's report concerning altered altcoin dynamics in the crypto market? Let us know what you think about this subject in the comments section below.
Frequently Asked Questions
How much gold should you have in your portfolio?
The amount of capital that you require will determine how much money you can make. If you want to start small, then $5k-$10k would be great. As you grow, it is possible to rent desks or office space. So you don't have all the hassle of paying rent. You just pay per month.
Also, you need to think about the type of business that you are going to run. My website design company charges clients $1000-2000 per month depending on the order. So if you do this kind of thing, you need to consider how much income you expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. Therefore, you might only get paid one time every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I recommend starting with $1k-$2k in gold and working my way up.
How much should precious metals be included in your portfolio?
This question can only be answered if we first know what precious metals are. Precious elements are those elements which have a high price relative to other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
There are also many other precious metals such as platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also unaffected significantly by inflation and Deflation.
In general, all precious metals have a tendency to go up with the market. However, the prices of precious metals do not always move in sync with one another. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. Investors expect lower interest rates which makes bonds less appealing investments.
However, when an economy is strong, the reverse effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. They are more rare, so they become more expensive and less valuable.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
Is the government allowed to take your gold
The government cannot take your gold because you own it. It's yours, and you earned it by working hard. It belongs exclusively to you. However, there may be some exceptions to this rule. You can lose your gold if you have been convicted for fraud against the federal governments. You can also lose precious metals if you owe taxes. You can keep your gold even if your taxes are not paid.
Can I hold physical gold in my IRA?
Gold is money, not just paper currency or coinage. People have been using gold for thousands of years to store their wealth and protect it from economic instability and inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
One reason is that gold historically performs better than other assets during financial panics. The S&P 500 dropped 21 percent in the same time period, while gold prices rose by nearly 100 percent between August 2011-early 2013. Gold was one asset that outperformed stocks in turbulent market conditions.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Even if your stock portfolio is down, your shares are still yours. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, gold provides liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
irs.gov
bbb.org
finance.yahoo.com
cftc.gov
How To
Gold IRAs are a growing trend
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
The gold IRA allows owners to invest in physical gold bullion and bars. This IRA can be used to grow your wealth tax-free and is an alternative option to stocks and bonds.
A gold IRA allows investors the freedom to manage their wealth without worrying about volatility in the markets. Investors can use the gold IRA for protection against inflation and potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.
Investors who seek financial stability and a safe haven are finding the gold IRA increasingly attractive.
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By: Jamie Redman
Title: Altcoin Dynamics Altered: Ethereum and Solana Lead Post-ETF Era
Sourced From: news.bitcoin.com/report-ethereum-and-solana-showcase-unique-market-dynamics-in-recent-altcoin-trends/
Published Date: Tue, 23 Jan 2024 22:30:19 +0000
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