Spot Bitcoin ETFs vs. Publicly-Listed Crypto Companies
While spot bitcoin exchange-traded funds (ETFs) witnessed robust trading activity on Thursday and Friday, publicly-listed crypto companies faced a different fate. As the market closed on Friday, several equities experienced significant losses, marking a challenging day for the industry.
Publicly-Listed Crypto Firms and Share Declines
Despite achieving a total trading volume of $7.65 billion since their listing, the 11 spot bitcoin ETFs couldn't escape the downward trend. Bitcoin's spot market value declined by 7% against the U.S. dollar during Friday's trading sessions.
Publicly-listed cryptocurrency companies also suffered losses, with notable firms delivering lackluster performances. For instance, Coinbase (Nasdaq: COIN) experienced a 7.35% decline, while Canaan (Nasdaq: CAN) faced an 8.92% drop against the U.S. dollar.
Other industry players like Block Inc. (Nasdaq: SQ) and Microstrategy Inc. (Nasdaq: MSTR) also saw their stocks decline, albeit to a lesser extent. Block Inc. witnessed a moderate 2% decrease, whereas Microstrategy Inc. took a substantial hit with a 9.45% loss. The new ETFs also struggled against the greenback during Friday's trading sessions.
Bitwise's BITB, the Fidelity Wise Origin Bitcoin Fund (FBTC), Blackrock's IBIT, and Valkyrie's BRRR all experienced declines ranging from 6.17% to 6.23%. Additionally, publicly listed bitcoin miners faced substantial losses, with Marathon (Nasdaq: MARA) witnessing a significant 15.27% decline and Bitfarms (Nasdaq: BITF) experiencing a 6.15% reduction in value.
Bit Digital (Nasdaq: BTBT) recorded a 7.59% loss against the dollar, while Iris Energy (Nasdaq: IREN) bore the brunt of a 14.74% hit to its valuation. Cleanspark (Nasdaq: CLSK) also didn't fare well, losing 12.10% on Friday.
A Wider Perspective: Long-Term Performance
Although the recent statistics may seem lackluster, a deeper analysis of the six-month and twelve-month market data paints a different picture. Many of the mentioned companies have achieved double to triple-digit gains over the past year, highlighting their long-term growth potential.
Market Outlook: Will the market rebound?
What are your thoughts on the losses witnessed by crypto company stocks on Friday? Do you anticipate a market rebound? Share your opinions in the comments section below.
Frequently Asked Questions
Is gold a good choice for an investment IRA?
Anyone who is looking to save money can make gold an excellent investment. It's also a great way to diversify your portfolio. There is much more to gold than meets your eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the oldest currency in the world.”
Gold is not created by governments, but it is extracted from the earth. Because it is rare and difficult to make, it is extremely valuable.
The supply and demand factors determine how much gold is worth. The strength of the economy means people spend more, and so, there is less demand for gold. The value of gold rises as a consequence.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This means that more gold is produced, which reduces its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you invest in gold, you'll benefit whenever the economy grows.
Additionally, you'll earn interest on your investments which will help you grow your wealth. In addition, you won’t lose any money if gold falls in value.
What are some of the benefits of a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It is tax-deferred until it's withdrawn. You are in complete control of how much you take out each fiscal year. There are many types available. Some are better suited to college savings. Some are for investors who seek higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. However, once they begin withdrawing funds, these earnings are not taxed again. This type account may make sense if it is your intention to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. 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 to owning IRA gold is the ability to withdraw automatically. That means you won't have to think about making deposits every month. To make sure you don't miss any payments, you can also set up direct deductions.
Gold is one of today's most safest investments. It is not tied to any country so its value tends stay steady. Even in economic turmoil, gold prices tends to remain relatively stable. As a result, it's often considered a good choice when protecting your savings from inflation.
Can I hold physical gold in my IRA?
Gold is money. Not just paper currency. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Today, Americans prefer precious metals like silver and gold to stocks and bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
One reason is that gold historically performs better than other assets during financial panics. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
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. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold is liquid. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. The liquidity of gold makes it a good investment. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
How much money should my Roth IRA be funded?
Roth IRAs are retirement accounts where you deposit your own money tax-free. The account cannot be withdrawn from until you are 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, your principal (the deposit amount originally made) is not transferable. This means that you can't take out more money than you originally contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. When you withdraw, you will have to pay income tax. Let's suppose that you contribute $5,000 annually to your Roth IRA. In addition, let's assume you earn $10,000 per year after contributing. This would mean that you would have to pay $3,500 in federal income tax. The remaining $6,500 is yours. Because you can only withdraw what you have initially contributed, this is all you can take out.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow you to deduct pretax contributions from your taxable income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs won't let you deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal requirement, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
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 accounts
finance.yahoo.com
bbb.org
investopedia.com
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 universally accepted due to its purity and divisibility, beauty, scarcity, and durability. Because of its intrinsic value, it was also widely traded. 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 started issuing American coins in the 1860s made of 90% copper and 10% zinc. The result was a decrease in foreign currency demand, which led to an increase in their price. At this point, the United States minted large amounts of gold coins, causing the price of gold 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. They decided to sell some excess gold to Europe in order to do this.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The value of gold has significantly increased since then. Although the price of gold fluctuates today, it remains one of your most safe investments.
—————————————————————————————————————————————————————————————–
By: Jamie Redman
Title: Declining Crypto Stocks: A Blow to Profit Streaks
Sourced From: news.bitcoin.com/across-the-board-crypto-stock-declines-erode-earlier-profit-streaks/
Published Date: Sat, 13 Jan 2024 16:30:20 +0000
Leave a Reply