Galaxy Digital CEO Mike Novogratz anticipates a significant surge in the price of bitcoin following the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). He believes that once the government gives its green light for purchasing bitcoin, there will be a notable shift in market sentiment.
The Bullish Outlook for Bitcoin
In a recent interview on Bloomberg TV, Galaxy Digital CEO Michael Novogratz explained why he expects the price of bitcoin to rise substantially. His optimism is rooted in the potential approval of the first spot bitcoin exchange-traded fund (ETF) in the United States by the Securities and Exchange Commission (SEC).
Novogratz elaborated, "There are several positive developments for bitcoin. We are on track to get an ETF. Currently, there is a lot of anticipation surrounding this news, and some of it is already factored into the price."
He further emphasized that when the announcement for a spot bitcoin ETF is made, which he estimates will occur two months before it becomes tradable, major financial institutions such as Blackrock, Ark, Fidelity, and Galaxy Digital itself will actively promote bitcoin adoption. Novogratz stated:
"Especially when the Fed is likely to cut rates, the price will see a significant surge."
Novogratz believes that it is entirely possible for bitcoin to reach its previous all-time high by this time next year. He pointed out that price movements are determined by marginal trades, and with a limited number of bitcoin sellers in the market, the upcoming halving event, which will cut the daily supply or inflation rate in half, will contribute to a compelling narrative. Additionally, he highlighted the uncertainty surrounding the upcoming election year and the fiscal irresponsibility of the U.S., Europe, and Japan as factors that could further drive bitcoin's price up.
The Impact of Spot Bitcoin ETFs
Once spot bitcoin ETFs are introduced, Novogratz predicts a massive influx of capital into the ETF space, potentially amounting to billions of dollars or more. He underscored:
"This infusion of funds represents entirely new money. We will witness a significant shift in market sentiment when the government announces that buying bitcoin is permissible, and institutional investors embrace this opportunity."
SEC Chairman Gary Gensler recently revealed that the regulator is currently reviewing between eight and ten spot bitcoin ETF applications. Many market participants anticipate that the SEC will approve multiple spot bitcoin ETFs simultaneously in early 2022.
What are your thoughts on Galaxy Digital CEO Mike Novogratz's prediction? Share your opinions in the comments section below.
Frequently Asked Questions
How much of your portfolio should you hold in precious metals
Before we can answer this question, it is important to understand what precious metals actually are. Precious elements are those elements which have a high price relative to other commodities. This makes them extremely valuable for trading and investing. Today, gold is the most commonly traded precious metal.
But, there are other types of precious metals available, including platinum and silver. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It also remains relatively unaffected by inflation and deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. That said, they do not always move in lockstep with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rates which makes bonds less appealing investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. Since these are scarce, they become more expensive and decrease in value.
Diversifying across precious metals is a great way to maximize your investment returns. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
How Much of Your IRA Should Include Precious Metals?
It's important to understand that precious metals aren't only for wealthy people. You don't need to be rich to make an investment in precious metals. In fact, there are many ways to make money from gold and silver investments without spending much money.
You might also be interested in buying physical coins, such bullion rounds or bars. Shares in precious metals-producing companies could be an option. You may also be interested in an IRA transfer program offered by your retirement provider.
You'll still get the benefit of precious metals no matter which country you live in. Even though they aren't stocks, they still offer the possibility of long-term growth.
Their prices rise with time, which is a different to traditional investments. If you decide to sell your investment, you will likely make more than with traditional investments.
Is buying gold a good way to save money for retirement?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
The most popular form of investing in gold is through physical bullion bars. 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 need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you need cash flow to finance your investment, then gold stocks could be a good option.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
How much gold should your portfolio contain?
The amount of capital that you require will determine how much money you can make. A small investment of $5k-10k would be a great option if you are looking to start small. You could then rent out desks and office space as your business grows. This way, you don't have to worry about paying rent all at once. You only pay one month.
It is also important to decide what kind of business you want to run. My website design company charges clients $1000-2000 per month depending on the order. This is why you should consider what you expect from each client if you're doing this kind of thing.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. Therefore, you might only get paid one time every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k-$2k of gold and growing from there.
What is a Precious Metal IRA and How Can You Benefit From It?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These rare metals are often called “precious” as they are very difficult to find and highly valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Bullion is often used to refer to precious metals. Bullion refers actually to the metal.
Bullion can be bought through many channels, including online retailers, large coins dealers, and some grocery shops.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This allows you to receive dividends every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. You pay only a small percentage of your gains tax. Plus, you can access your funds whenever you like.
What are the benefits of a gold IRA
Many benefits come with a gold IRA. It's an investment vehicle that allows you to diversify your portfolio. You decide how much money is put in each account and when it is withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This is a great way to make a smooth transition if you want to retire earlier.
The best part about gold IRAs? You don't have to be an expert. They are offered by most banks and brokerage companies. Withdrawals can happen automatically, without any fees or penalties.
There are, however, some drawbacks. Gold has always been volatile. So it's essential to understand why you're investing in gold. Is it for growth or safety? Are you trying to find safety or growth? Only after you have this information will you make an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce will not be sufficient to meet all your requirements. You could need several ounces depending on what you plan to do with your gold.
You don't have to buy a lot of gold if your goal is to sell it. Even one ounce is enough. However, you will not be able buy any other items with those funds.
Which precious metals are best to invest in retirement?
The best precious metal investments are gold and silver. Both can be easily bought and sold, and have been around since forever. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: Gold is one the oldest forms currency known to man. It is also extremely safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Silver has been a favorite among investors for years. This is a great choice for people who want 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. It's like silver or gold in that it is durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium – Rhodium is used to make catalytic conversions. It is also used in jewelry-making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also more accessible. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Statistics
- (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)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
irs.gov
bbb.org
investopedia.com
cftc.gov
How To
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. In addition, because of its value, it was traded internationally. There were different measures and weights for gold, as there was no standard to measure it. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. This resulted in a decline of foreign currency demand and an increase in the price. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. To do this, they decided that some of their excess gold would be sold back to Europe.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The price of gold rose significantly over the years. Even though the price fluctuates, gold is still one of best investments.
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By: Kevin Helms
Title: Bitcoin Price Expected to Soar After SEC Approves Spot Bitcoin ETFs, Says Novogratz
Sourced From: news.bitcoin.com/novogratz-expects-bitcoin-price-to-be-significantly-higher-after-sec-approves-spot-bitcoin-etfs/
Published Date: Sat, 02 Dec 2023 03:00:31 +0000
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