Introduction
As the year 2024 approaches, market strategists at Bitfinex express optimism for the future of bitcoin and crypto assets. Despite regulatory and reputational challenges, these assets have shown resilience. Bitfinex analysts believe that the crypto market is currently experiencing a cycle of greed and regulation, and they anticipate a significant increase in market capitalization.
Bitfinex Analysts Predict Bullish Trajectory
The analysts at Bitfinex predict a potential market cap of up to $3.2 trillion for the crypto economy by 2024. They acknowledge the historical pullbacks and market oscillations but remain optimistic about the future. According to the latest Bitfinex Alpha report, the fear and greed index in the crypto market suggests a mid-bull market high for bitcoin (BTC), indicating a vibrant market phase.
Institutional Investors' Rising Interest in Crypto Assets
Bitfinex researchers highlight the growing interest of institutional investors in crypto assets, particularly bitcoin. The anticipated introduction of spot bitcoin ETFs is expected to act as a catalyst, potentially driving more capital into higher-risk crypto assets. However, Bitfinex strategists believe that bitcoin will continue to be favored among institutional portfolios, especially in the first half of 2024.
MVRV Metric and Miner Profitability
The MVRV metric, which compares bitcoin's market value to its realized value, indicates a market environment similar to the bullish recoveries of the mid-2010s. The report emphasizes the significance of miner profitability and behavior, especially in a halving year like 2024. The researchers expect a healthy market with ample growth opportunities and limited selling pressure from miners.
Global Adoption of Crypto Assets
The researchers at Bitfinex point out the adoption trajectory of bitcoin in countries like El Salvador and Argentina. These countries' embrace of crypto assets as hedges against economic instability reflects a broader global trend. The report predicts that this trend will continue to strengthen in 2024.
Increase in Global Cryptocurrency Ownership
Based on their predictive analysis, Bitfinex anticipates a significant increase in global cryptocurrency ownership, potentially reaching between 850 and 950 million individuals. This surge demonstrates the growing acceptance and integration of crypto assets like bitcoin into mainstream economic activities.
Macroeconomic Outlook for 2024
Bitfinex's report concludes that the broader macroeconomic outlook for 2024 suggests stabilizing wage growth and manageable inflation levels. Despite geopolitical tensions and economic uncertainties, a moderated inflation rate and a more efficient global economy are expected. This environment is conducive to the growth of crypto assets.
What are your thoughts on Bitfinex's Alpha report? Share your opinions in the comments section below.
Frequently Asked Questions
Should You Invest in Gold for Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you're unsure about which option to choose then consider investing in both.
You can earn potential returns on your investment of gold. Retirees will find it an attractive investment.
Gold is more volatile than most other investments. Because of this, gold's value can fluctuate over time.
This doesn't mean that you should not invest in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another benefit to gold? It's a tangible asset. Unlike stocks and bonds, gold is easier to store. It can be easily 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.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. Gold rises in the face of a falling stock market.
Another benefit to investing in gold? You can always sell it. You can easily liquidate your investment, just as with stocks. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Also, don't buy too much at once. Start with a few ounces. You can add more as you need.
It's not about getting rich fast. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Is the government allowed to take your gold
Because you have it, the government can't take it. It's yours, and you earned it by working hard. It belongs to you. This rule may not apply to all cases. If you are convicted of fraud against the federal government, your gold can be forfeit. If you owe taxes, your precious metals could be taken away. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
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. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
The money can be withdrawn tax-free if it's deposited in a traditional IRA (or 401(k)). Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
These rules vary from one state to another. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. You can delay until April 1st in Massachusetts. New York allows you to wait until age 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
The growing trend of gold IRAs
Investors seek diversification and protection against inflation by using gold IRAs.
The gold IRA allows investors to purchase physical gold bars and bullion. It is tax-free and can be used by investors who aren't concerned about stocks and bond.
A gold IRA allows investors to manage their assets without worrying about market volatility. They can use the gold IRA to protect themselves against inflation and other potential problems.
Investors also benefit from physical gold's unique properties, such as durability and portability.
In addition, the gold IRA offers several other advantages, including the ability to quickly transfer ownership of the gold to heirs and the fact that the IRS does not consider gold a currency or a commodity.
All this means that the gold IRA is becoming increasingly popular among investors seeking a haven during financial uncertainty.
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By: Jamie Redman
Title: Bitfinex Analysts Optimistic for Bitcoin and Crypto Assets as 2024 Approaches
Sourced From: news.bitcoin.com/2024-crypto-economy-forecast-bitfinex-researchers-predict-3-2-trillion-market-cap-amid-rising-adoption/
Published Date: Fri, 22 Dec 2023 23:30:46 +0000
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