Introduction
In a recent interview with Gareth Soloway, the chief market strategist at verifiedinvesting.com, Soloway suggested that bitcoin might revisit the $15K level should a significant stock market sell-off occur.
Soloway's Insights on Bitcoin
Two days ago, Gareth Soloway of verifiedinvesting.com engaged in a new interview with Michelle Makori, Kitco News' lead anchor and editor-in-chief, to discuss bitcoin's latest trends and its potential future trajectory. Soloway shared insights on his approach to analyzing various data sets for forecasting future trends and drawing conclusions. He highlighted the alignment of the 2017 and 2021 bitcoin bull markets with significant events: the introduction of regulated bitcoin futures in 2017 and the Coinbase initial public offering (IPO) in 2021.
Soloway's Concerns
According to Soloway, the current bitcoin price level and its recent downturn following specific developments seem logical. He mentioned the outflows from GBTC and noted that "there was a lot of smart money that bought ahead of this news." The significant discount at which GBTC was trading was seen as an "extra bonus" by these investors. However, Soloway expressed concern about a potential bearish view on BTC if there is a peak in the S&P market or a de-risking occurrence in the broader markets.
Potential Bitcoin Dip
Soloway shared his worry that bitcoin could head back down, stating that if there is a 50% drop in the stock market, he sees bitcoin retesting the $15,000 level. These remarks align with a recent survey by Deutsche Bank, where a third of respondents anticipated BTC's value falling below $20K. Additionally, Arthur Hayes, the ex-boss of Bitmex, predicts BTC could hit lows of $30K to $35K. Soloway is closely monitoring these developments and mentioned that the upcoming three-plus weeks are critical to observe.
Soloway's Optimism
Despite the potential for a bitcoin dip, Soloway remains optimistic about bitcoin in the long term. He expressed his intention to increase his BTC holdings if prices continue to decline. In the past, Soloway accurately predicted the approval of spot bitcoin ETFs in early 2024. Whether his predictions regarding an equities sell-off and BTC potentially reaching the $15K mark this year will materialize remains to be seen. As of Sunday, Jan. 28, 2024, BTC is maintaining its position above $42K, currently undergoing a phase of consolidation.
Conclusion
Gareth Soloway's prediction of a potential bitcoin dip to $15K has sparked discussions among investors. While there are concerns about a bearish view on BTC and projections of lower prices, Soloway remains optimistic in the long term. The next few weeks will be crucial in observing the market's behavior. What are your thoughts on Soloway's bitcoin prediction? Let us know in the comments section below.
Frequently Asked Questions
How much gold should you have in your portfolio?
The amount you make will depend on the amount of capital you have. A small investment of $5k-10k would be a great option if you are looking to start small. As you grow, you can move into an office and rent out desks. So you don't have all the hassle of paying rent. Rent is only paid per month.
It's also important to determine what type business you'll 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. You might get paid only once every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I suggest starting with $1k-2k gold and building from there.
How much do gold IRA fees cost?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance and any investment costs.
You may have to pay additional fees if you want to diversify your portfolio. These fees vary depending on what type of IRA you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Most providers also charge an annual management fee. These fees are usually between 0% and 1%. The average rate is.25% each year. These rates are usually waived if you use a broker such as TD Ameritrade.
Should You Invest Gold in Retirement?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. If you are unsure of which option to invest in, consider both.
Gold offers potential returns and is therefore a safe investment. Retirement investors will find gold a worthy investment.
While most investments offer fixed rates of return, gold tends to fluctuate. Its value fluctuates over time.
But this doesn't mean you shouldn't invest in gold. It is important to consider the fluctuations when planning your 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 gold as long your place it safe. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. When the stock market drops, gold usually rises instead.
Investing in gold has another advantage: you can sell it anytime you want. Like stocks, you can sell your position anytime you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Don't purchase too much at once. Begin by buying a few grams. Next, add more as required.
Remember, the goal here isn't to get rich quickly. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
What are the pros and cons of a gold IRA?
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. This type of investment has its downsides.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. If you do withdraw funds, you'll need to pay a penalty.
You will also need to pay fees for managing your IRA. Most banks charge 0.5% to 2.0% per annum. Others charge management fees that range from $10 to $50 per month.
Insurance will be required if you would like to keep your cash out of banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. You might be required to buy insurance that covers losses up to $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. You may be limited in the amount of gold you can have by some providers. Some providers allow you to choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Futures contracts for gold are less expensive than physical gold. However, futures contracts give you flexibility when buying gold. They enable you to establish a contract with an expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does provide coverage for damage from natural disasters, however. You might consider purchasing additional coverage if your area is at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians aren't allowed to sell your assets. Instead, they must maintain them for as long a time as you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Also, you should specify how much each month you plan to invest.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. After receiving your application, the company will review it and mail you a confirmation letter.
When opening a gold IRA, you should consider using a financial planner. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- 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
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not legal – WSJ
cftc.gov
forbes.com
finance.yahoo.com
How To
Three ways to invest in gold for retirement
It's crucial to understand where gold fits in your retirement strategy. There are many ways to invest in gold if you have a 401k account at work. You may also be interested in investing in gold beyond your workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are three easy rules to remember if you invest in gold.
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, put cash into your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. Physical gold coins are easier to sell than certificates. Physical gold coins are also free from storage fees.
- Diversify Your Portfolio – Never put all of your eggs in one basket. This means that you should diversify your wealth by investing in different assets. This reduces risk and allows you to be more flexible during market volatility.
—————————————————————————————————————————————————————————————–
By: Jamie Redman
Title: Gareth Soloway Predicts Potential Bitcoin Dip to $15K
Sourced From: news.bitcoin.com/market-strategist-gareth-soloway-eyes-15k-bitcoin-in-event-of-stock-market-slide/
Published Date: Sun, 28 Jan 2024 23:00:58 +0000
Leave a Reply