Introduction
As November 2023 unfolds, the crypto economy is buzzing with market activity, showcasing a striking performance from bitcoin (BTC) alongside a steady progression from ethereum (ETH). Crypto markets are calm and consolidated at the moment, as market observers and traders wait for the news stemming from the Federal Open Market Committee (FOMC) policy announcement.
Bitcoin and Ethereum Show Divergent Paths Navigating Uncertain Waters
Hours before the upcoming FOMC meeting, the crypto economy's net value is coasting along at $1.3 trillion. Investors are waiting to see whether or not the U.S. Federal Reserve will raise the federal funds rate. However, the CME Fedwatch Tool shows a 97% chance a rate hike will not come to fruition. U.S. 10-year Treasury yields are lower, but the long-term bonds are still at a 16-year high. Equity futures have dropped slightly with the FOMC expectations and anticipation.
Bitcoin
Currently, at the time of writing, bitcoin (BTC) is exchanging hands at $34,388.22 per unit. The leading crypto asset has recorded a 24-hour range between $34,174 and $34,703 per BTC. Bitcoin commands approximately $8.97 billion in global trade volume on Wednesday, and its market cap dominates by 50.9%.
Bitcoin’s current state reflects a strong bullish momentum, underscored by its significant price surge over the last fortnight. The relative strength index (RSI) at 79 and Stochastic at 75 both point toward overbought conditions, signaling the potential for a price correction or consolidation in the near term. However, the moving averages tell a different story; with the exponential moving average (EMA) at 33,586 and simple moving average (SMA) at 34,173, both indicators suggest a bullish signal, reinforcing the prevailing upward trend.
Despite the positive price movement, the discrepancy between the oscillators and moving averages necessitates caution. The overbought conditions indicated by the RSI and Stochastic could lead to increased volatility, and traders should be prepared for potential short-term price fluctuations. The moving averages, while bullish, could also be interpreted in conjunction with the caution signals shown by the two oscillators.
Ethereum
Presently, ethereum’s (ETH) price is coasting along at $1,796 per unit. ETH has witnessed a 24-hour range of $1,786 to $1,827 per ether. Ethereum’s volume is higher than BTC’s today with $10.56 billion traded over the last 24 hours. In terms of market dominance, ETH’s market valuation amounts to 16.4% of the $1.3 trillion crypto economy.
Ethereum presents a more tempered growth story, with a 3.9% increase in price over the past month. The oscillators, with an RSI of 67 and Stochastic of 76, do not indicate an extreme market condition, suggesting a more stable and neutral environment compared to Bitcoin. The moving averages, with an EMA of 1,771 and SMA of 1,792, provide additional support for a positive outlook, though the growth is not as pronounced as that of Bitcoin.
The steadier price movement of Ethereum, coupled with the less extreme oscillator values, positions ETH as a potentially less volatile option in the current market. However, traders should still exercise caution and consider a range of indicators and market conditions before making trading decisions. The positive trend indicated by the moving averages is a promising sign, but it is crucial to remain vigilant and stay updated with market developments.
Do you think today’s FOMC policy announcement will impact crypto markets like Bitcoin and Ethereum? Leave your thoughts in the comments below.
Frequently Asked Questions
Can I have physical gold in my IRA
Gold is money and not just paper currency. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
One reason is that gold has historically performed better than other assets during periods of financial panic. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. Gold was one asset that outperformed stocks in turbulent market conditions.
Gold is one of the few assets that has virtually no counterparty risks. Your stock portfolio can fall, but you will still own your shares. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Gold provides liquidity. This allows you to sell your gold whenever you want, unlike many other investments. You can buy gold in small amounts because it is so liquid. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
Is it a good idea to open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. It is impossible to get back money if you lose your investment. All your investments can be lost due to theft, fire or flood.
This type of loss can be avoided by investing in physical silver and gold coins. These items have been around for thousands of years and represent real value that cannot be lost. They are likely to fetch more today than the price you paid for them in their original form.
If you decide to open an IRA account, choose a reputable company that offers competitive rates and products. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
Do not open an account unless you're ready to retire. Remember the future.
Is buying gold a good option for retirement planning?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion bar is the best way to invest in precious metals. You can also invest in gold in other ways. Research all options carefully and make an informed decision about what you desire from your investments.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you need cash flow to finance your investment, then gold stocks could be a good option.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
How do I open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form should be filled within 60 calendar days of opening the account. After this, you are ready to start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious-metals IRA, you'll need to meet some requirements. The IRS says you must be 18 years old and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Contributions must be made on a regular basis. These rules apply regardless of whether you are contributing directly to your paychecks or through your employer.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. However, you can't purchase physical bullion. You won't have the ability to trade stocks or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. Some IRA providers offer this option.
However, there are two significant drawbacks to investing in precious metals via an IRA. They aren't as liquid as bonds or stocks. It is therefore harder to sell them when required. They don't yield dividends like bonds and stocks. You'll lose your money over time, rather than making it.
Is it possible to hold a gold ETF within a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
An IRA traditional allows both employees and employers to contribute. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
A Individual Retirement Annuity (IRA), is also available. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions made to IRAs are not taxable.
Should You Invest Gold in Retirement?
It depends on how much you have saved and if gold was available at the time you started saving. If you're unsure about which option to choose then consider investing in both.
Not only is it a safe investment but gold can also provide potential returns. It's a great investment for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. As a result, its value changes over time.
But this doesn't mean you shouldn't invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold can be stored more easily than stocks and bonds. It can also be transported.
Your gold will always be accessible as long you keep it in a safe place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
It's also a good idea to have a portion your savings invested in something which isn't losing value. Gold rises in the face of a falling stock market.
Investing in gold has another advantage: you can sell it anytime you want. Just like stocks, you can liquidate your position whenever you need cash. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
You shouldn't buy too little at once. Start with a few ounces. Next, add more as required.
Keep in mind that the goal is not to quickly become wealthy. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Can I buy gold using my self-directed IRA
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. They allow you to speculate on future prices without owning the metal itself. However, physical bullion is real gold or silver bars you can hold in your hands.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
External Links
finance.yahoo.com
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads and Example. Risk Metrics
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
bbb.org
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. You must contribute enough each year to ensure that you have adequate growth.
You also want to take advantage of tax-free opportunities such as a traditional 401(k), SEP IRA, or SIMPLE IRA. These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. They are a great option for those who do not have access to employer matching money.
It is important to save consistently over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
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By: Jamie Redman
Title: Bitcoin, Ethereum Technical Analysis: Market Holds Its Breath for Fed’s Upcoming Policy Decision
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-market-holds-its-breath-for-feds-upcoming-policy-decision/
Published Date: Wed, 01 Nov 2023 12:00:26 +0000
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