Bitcoin Rally Tops $47K
On Monday, Bitcoin broke through the $47K barrier, driven by increasing anticipation of the potential launch of a U.S. spot Bitcoin exchange-traded fund (ETF). The leading cryptocurrency started the day at $43,247 per unit and reached a peak of $47,281 by 2:10 p.m. Eastern Time (ET).
Bitcoin's Market Cap Soars
In the afternoon of Monday, there was a significant surge in the market capitalization of Bitcoin, occurring around 2 p.m. ET. Bitcoin (BTC) experienced a gain of over $3,600 from its daily low, with many analysts attributing this upswing to the potential approval of multiple spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). The latest market data reveals that Bitcoin last touched this price range in December 2021, after its decline from the all-time high of $69K.
The market value of the digital currency skyrocketed to exactly $917 billion, surpassing Meta (formerly Facebook) in terms of market size and securing its position as the ninth-largest asset by market valuation. The trading volume for BTC has also intensified, contributing $37.17 billion to the day's total of $144 billion in trades. Current statistics show that, as of 3:10 p.m. ET, BTC's market value of $46,922 is just over 32% below its all-time high of $69K, achieved on November 10, 2021.
Short Trading Positions Liquidated
This increase in price has resulted in the liquidation of numerous short trading positions. According to Coinglass's four-hour data, $73.62 million in BTC shorts were liquidated, with approximately $13.75 million occurring after the surge past $47K. The rise in Bitcoin's price has also lifted other cryptocurrencies, pushing the entire crypto market economy to a value of $1.80 trillion. Bitcoin dominates this figure with a 50.8% market share, while Ethereum (ETH) holds a 15.6% stake in the combined market.
What are your thoughts on Bitcoin's value surge on Monday afternoon? Feel free to share your opinions and perspectives on this topic in the comments section below.
Frequently Asked Questions
How is gold taxed in Roth IRA?
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
These accounts are subject to different rules depending on where you live. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you up to April 1st. New York allows you to wait until age 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
What are the benefits of a Gold IRA?
An Individual Retirement Account (IRA) is the best way to put money towards retirement. You can withdraw it at any time, but it is tax-deferred. You have complete control over how much you take out each year. And there are many different types of IRAs. Some are more suitable for students who wish to save money for college. Others are designed for investors looking for higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account is a good option if you plan to retire early.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another benefit of owning gold through an IRA is that you get to enjoy the convenience of automatic withdrawals. You won't have the hassle of making deposits each month. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold remains one of the best investment options today. It is not tied to any country so its value tends stay steady. Even in times of economic turmoil gold prices tend to remain stable. It is therefore a great choice for protecting your savings against inflation.
Are You Ready to Invest in Gold?
It depends on how much you have saved and if gold was available at the time you started saving. You can invest in both options if you aren't sure which option is best for you.
In addition to being a safe investment, gold also offers potential returns. It's a great investment for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. This causes its value to fluctuate over time.
This does not mean you shouldn’t invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another advantage of gold is its tangible nature. Gold is less difficult to store than stocks or bonds. It can also be transported.
You can always access your gold if it is stored in a secure place. You don't have to pay storage fees for 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.
Also, you'll reap the benefits of having some savings invested in something with a stable value. Gold rises in the face of a falling stock market.
Another advantage to investing in gold is the ability to sell it whenever you wish. Like stocks, you can sell your position anytime 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. Don't put all of your eggs in one basket.
You shouldn't buy too little at once. Start small, buying only a few ounces. Continue adding more as necessary.
Don't expect to be rich overnight. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
What Should Your IRA Include in Precious Metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. They don't require you to be wealthy to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You might also be interested in buying physical coins, such bullion rounds or bars. You could also buy shares in companies that produce precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They are not stocks but offer long-term growth.
And unlike traditional investments, they tend to increase in value over time. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
Can I buy gold with my self-directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. Transfer funds from an existing retirement account are also possible.
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 $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts can be described as financial instruments that are determined by the gold price. 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.
Can I keep a Gold ETF in a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
A traditional IRA allows contributions from both employee and employer. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
A Individual Retirement Annuity (IRA), is also available. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs do not have to be taxable
Statistics
- 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)
- 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)
- 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
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
cftc.gov
bbb.org
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads. Example. And Risk Metrics
How To
The best way online to buy gold or silver
First, understand the basics of gold. Precious metals like gold are similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They aren't circulated in any currency exchange systems. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. The buyer receives 1 gram of gold for every dollar spent.
The next thing you should know when looking to buy gold is where to do it from. There are many options for buying gold directly from dealers. First, you can visit your local coin store. You can also try going through a reputable website like eBay. Finally, you can look into purchasing gold through private sellers online.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. Private sellers will charge you a 10% to 15% commission for every transaction. A private seller will usually return less money than a coin shop and eBay. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
Another option for buying gold is to invest in physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. Physical gold must be kept safe in an impassible container, such as a vault.
When buying gold on your own, you can visit a bank or a pawnshop. A bank can offer you a loan for the amount that you need to buy gold. These are small businesses that let customers borrow money against the items they bring to them. Banks tend to charge higher interest rates, while pawnshops are typically lower.
The final option is to ask someone to buy your gold! Selling gold can be as easy as selling. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Jamie Redman
Title: Bitcoin Surpasses $47K, Surpasses Meta in Market Cap Amid ETF Speculation and Intense Trading
Sourced From: news.bitcoin.com/bitcoin-soars-past-47k-outstrips-meta-in-market-cap-amid-etf-speculation-and-intense-trading/
Published Date: Mon, 08 Jan 2024 20:26:13 +0000
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