As markets prepared for an eventual 100 basis point increase in the interest rate from the United States central banks, Bitcoin dropped below $19,000 Wednesday. While the consensus rate of a rate hike remains at 0.75% some think that a 1.00% increase could be possible, given the historically high inflation levels. Ethereum traded slightly above $1,300, despite trading lower in the news.
Bitcoin
Bitcoin (BTC), which was trading at $19,000, fell earlier in the day as traders started to prepare for today’s Federal Open Market Committee meeting (FOMC).
As market uncertainty continues to grow, speculation is growing about whether the Fed will raise rates by 100 basis points.
BTC/USD dropped to $18,813.46 earlier today after reaching a high of $19,600.
The chart shows that the most recent drop has put the 10-day (red), moving average on the verge of a downwards crossover with its 25-day counterpart (blue).
If this happens, bitcoin could slip below $19,000 and potentially fall below $18,000 for its first time since June.
The token trades at $19,153.66 as of writing. Prices continue to consolidate before today's announcement.
Ethereum
Ethereum (ETH), which was consolidating on hump Day, saw the token trading slightly above the $1,300 mark.
After a Tuesday high of $1.378.68, ETH/USD fell to an intraday low today of $1.319.20, as bearish sentiment in crypto markets continued.
In recent days traders have been cautious and decided to liquidate their positions rather than hold onto longs in anticipation of the rate rise.
A collision on the 14 day relative strength index (RSI) caused uncertainty to rise, with the index hitting resistance.
The index currently tracks at 38.43. This is slightly below the ceiling of 39.00. It is the main barrier to prices rising.
Although the market remains fearful, ETH bulls could reenter the markets if the ceiling is breached. They may attempt to increase price above $1,400.
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Will the Federal Reserve raise rates by 0.75% and 1.00%? Comment below to share your thoughts.
Frequently Asked Questions
What are the pros & cons of a Gold IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. There are some disadvantages to this investment.
You could lose all of your accumulated money if you take out too much from your IRA. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. A penalty fee will be charged if you decide to withdraw funds.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
Insurance is necessary if you wish to keep your money safe from the banks. Many insurers require that you own at least one ounce of gold before you can make a claim. Some insurers may require you to have insurance that covers losses up $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit how many ounces you can keep. Others let you pick your weight.
It's also important to decide whether or not to buy gold futures contracts. The price of physical gold is higher than that of gold futures. Futures contracts, however, allow for greater flexibility in buying gold. Futures contracts allow you to create a contract with a specified expiration date.
It is also important to choose the type of insurance coverage that you need. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. The policy does not cover natural disasters. You might consider purchasing additional coverage if your area is at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Insurance doesn't cover storage costs. Safekeeping costs can be as high as $25-40 per month at most banks.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians can't sell assets. Instead, they must hold them as long as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. You should also specify how much you want to invest each month.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. The company will then review your application and mail you a letter of confirmation.
Consider consulting a financial advisor when opening a golden IRA. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
What precious metals do you have that you can invest in for your retirement?
The best precious metal investments are gold and silver. Both can be easily bought and sold, and have been around since forever. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It's stable and safe. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Investors have always loved silver. It is an excellent choice for investors who wish to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. Like gold and silver, it's very durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium is used in catalytic converters. It is also used in jewelry-making. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium is similar to platinum, but it's less rare. It is also cheaper. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
How can you withdraw from an IRA of Precious Metals?
First decide if your IRA account allows you to withdraw funds. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. This option will require you to pay taxes on the amount that you withdraw.
Next, figure out how much money will be taken out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. However, a debit card is better than a card. This will save you unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities can accept bullion bar, while others require you buy individual coins. Before choosing one, consider the pros and disadvantages of each.
Bullion bars are easier to store than individual coins. But you will have to count each coin separately. You can track their value by keeping individual coins.
Some prefer to keep their money in a vault. Others prefer to store their coins in a vault. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
Statistics
- 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)
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
irs.gov
bbb.org
finance.yahoo.com
investopedia.com
How To
Investing in gold vs. investing in stocks
It might seem risky to invest in gold as an investment vehicle these days. This is because many people believe gold is no longer financially profitable. This belief arises because most people believe that the global economy is driving down gold prices. They think that they would lose money if they invested in gold. There are many benefits to investing in gold. Here are some examples.
One of the oldest currencies known to man is gold. Its use can be traced back to thousands of years ago. It was used all around the world as a reserve of value. It's still used by countries like South Africa as a method of payment.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don’t know the current market rate for gold bullion, you can always consult a local jeweler to get their opinion.
Noting that gold prices have fallen in recent years, it is worth noting that the cost to produce gold has gone up. Although the price of gold has dropped, production costs have not.
It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. It is worth considering if you intend to use it for long-term investment. Selling your gold at a higher value than what you bought can help you make money.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only then can you make informed decisions.
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By: Eliman Dambell
Title: Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate as Some Expect Fed to Hike Rates by 1%
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-eth-consolidate-as-some-expect-fed-to-hike-rates-by-1/
Published Date: Wed, 21 Sep 2022 13:00:19 +0000
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