Bitcoin Surges Above $37K as Shorts Experience $96 Million Loss
The current Crypto Fear and Greed Index (CFGI) indicates a sentiment of "greed" in the cryptocurrency market, scoring 69 out of 100. As of November 9, 2023, at 5:20 a.m. Eastern Time, the price of bitcoin reached a peak above $37K, a level not seen since the first week of May 2022, a period spanning over 550 days.
The valuation of bitcoin (BTC) has risen by 4.4% against the U.S. dollar on Thursday, marking a significant 34% increase over the past month. Bitcoin is now trading slightly above the $37K threshold, a level last observed on May 6, 2022.
Bitcoin's Prolonged Stint Below $37K and Recent Milestones
Bitcoin's price has remained below the $37K mark for an extended period of over a year, spanning more than 550 days. It has been 238 days since the value of BTC dropped below $25,000 on March 16, 2023, and 299 days since it fell below $20,000 on January 14, 2023.
Furthermore, bitcoin has not been priced at $10,000 or lower since July 27, 2020, which is approximately 1,200 days ago. Between 2020 and 2023, bitcoin's price stayed below $10,000 for a total of 202 days, below $20,000 for 471 days, and below $25,000 for 637 days.
Bullish Outlook and Greed Sentiment
This week, bitcoin has maintained a strong position above $35K, signaling a bullish outlook supported by technical oscillators and moving averages. The 10-day short-term exponential moving average (EMA) and simple moving average (SMA) are showing bullish signals, indicating a positive price trajectory in recent times.
Despite these positive indicators, the Crypto Fear and Greed Index (CFGI) continues to lean towards "greed." This sentiment was also evident in the previous week and day, while the index reflected "neutral" feelings last month according to alternative.me.
The CFGI suggests that "extreme fear" may indicate widespread concern among traders and investors, potentially presenting a prime entry point. Conversely, "extreme greed" suggests that the crypto market may be due for a price correction.
Short Bets and Losses
However, recent statistics reveal that those who placed short bets in anticipation of a crypto market downturn suffered losses amounting to $162 million in just one day. Bitcoin's rapid surge towards $37K resulted in the liquidation of over 59% of these short positions, totaling around $96 million.
What are your thoughts on the Crypto Fear and Greed Index? Share your opinions in the comments section below.
Frequently Asked Questions
How much should precious metals make up your portfolio?
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them highly valuable for both investment and trading. Gold is today the most popular precious metal.
There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also not affected by inflation and depression.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, the prices of precious metals do not always move in sync with one another. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. Because they are rare, they become more pricey and lose value.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
What does a gold IRA look like?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase physical gold bullion coins anytime. You don't have to wait until retirement to start investing in gold.
You can keep gold in an IRA forever. Your gold holdings won't be subject to taxes when you pass away.
Your heirs can inherit your gold and avoid capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've done so, you'll be given an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.
Once you've set up your gold IRA, it's possible to buy gold bullion. Minimum deposit required is $1,000 You'll get a higher rate of interest if you deposit more.
When you withdraw your gold from your IRA, you'll pay taxes on it. You will be liable for income taxes and penalties if you take the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. However, there are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. If you do, you could face severe financial consequences.
What Precious Metals Can You Invest in for Retirement?
It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. 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 is very stable and secure. It is a good way for wealth preservation during uncertain times.
Silver: Silver has been a favorite among investors for years. It's a great option for those who want stability. Silver, unlike gold, tends not to go down but up.
Platinum: A new form of precious metal, platinum is growing in popularity. It is very durable and resistant against corrosion, much like silver and gold. It's also more expensive than the other two.
Rhodium: Rhodium is used in catalytic converters. It is also used to make jewelry. It is also very affordable in comparison to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It is also cheaper. It's a popular choice for investors who want to add precious metals into their portfolios.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
irs.gov
bbb.org
cftc.gov
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Online buying gold and silver is the best way to purchase it.
To buy gold, you must first understand how it works. Precious metals like gold are similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It is difficult to use so people prefer to buy jewelry made from it to gold bars.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins can be used for circulation within a country. These coins usually come in denominations such $1, $5 and $10.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They are not exchangeable in any currency exchange system. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Each dollar spent earns the buyer 1 gram gold.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. If you want to purchase gold directly from a dealer, then a few options are available. You can start by visiting your local coin shop. You can also try going through a reputable website like eBay. You may also be interested in buying gold through private sellers online.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. A private seller will usually return less money than a coin shop and eBay. This is a great option for gold investing because you have more control over the item’s price.
An alternative option to buying gold is to buy physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
You can either visit a bank, pawnshop or bank to buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks often charge higher interest rates then pawnshops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold can be as easy as selling. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
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By: Jamie Redman
Title: Bitcoin Hits 18-Month High as Market ‘Greed’ Takes Hold, Igniting Short Squeeze Frenzy
Sourced From: news.bitcoin.com/bitcoin-hits-18-month-high-as-market-greed-takes-hold-igniting-short-squeeze-frenzy/
Published Date: Thu, 09 Nov 2023 14:30:33 +0000
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