Jim Cramer's Bitcoin Prediction
Jim Cramer, the host of CNBC's Mad Money show, has expressed his concerns regarding a potential bitcoin selloff. While he cautions investors about investing in bitcoin and the newly launched spot bitcoin exchange-traded funds (ETFs), he also acknowledges the longevity and establishment of Bitcoin, stating that he does not wish to discourage speculation as long as investors conduct thorough research.
The Impact of SEC's Approval of Spot Bitcoin ETFs
Jim Cramer has been actively discussing the outlook of bitcoin's price this week, particularly focusing on the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). As a former hedge fund manager and co-founder of financial news website Thestreet.com, Cramer brings his expertise to the table.
The anticipation of the SEC's approval led to a surge in the price of bitcoin, reaching above $47,000. However, after the approval, the price experienced a decline, dropping to a low of nearly $40,000 on Friday. Currently, BTC has slightly recovered and is trading at $41,589. Cramer addressed the BTC price decline on social media, stating that the sudden drop was expected due to the significant increase in value prior to the ETF approval.
Challenging Cramer's Statements
Cramer's bearish statements about bitcoin's price have been met with opposing views from many users. Some argue that the launch of spot bitcoin ETFs was a success, surpassing silver as the second-largest commodity ETF and witnessing substantial inflows within a short period. Interestingly, Cramer's predictions about bitcoin's price have gained a reputation in the crypto community. Referred to as the "Cramer effect," it is believed that BTC tends to move in the opposite direction of Cramer's expectations.
Cautious Approach to Bitcoin Investment
Although Cramer maintains a level of skepticism, he clarifies that he is not entirely against investing in bitcoin. He references JPMorgan Chase CEO Jamie Dimon, who advised caution when it comes to bitcoin investment. Cramer adopts a similar viewpoint, emphasizing the importance of understanding the nature of spot bitcoin ETPs and the proportion of funds invested compared to the rise in bitcoin's value.
Cramer also addresses SEC Chair Gary Gensler's statement that the approval of spot bitcoin ETFs does not imply an endorsement of bitcoin. While Cramer disagrees with Gensler's stance, he acknowledges that bitcoin has been around for 15 years and is well-established. He encourages individuals to conduct their own research before engaging in speculative activities involving bitcoin.
Jim Cramer's Shifting Views on Bitcoin
In previous weeks, Cramer has expressed contrasting opinions about bitcoin. He initially mentioned that BTC was reaching its peak, only to later describe it as a "technological marvel" that is here to stay. This inconsistency in his views has sparked discussions among bitcoin enthusiasts.
In conclusion, Jim Cramer's warnings and advice regarding bitcoin should be taken into consideration, but investors should also conduct their own research and make informed decisions. The crypto market is known for its volatility, and it is crucial to stay updated and informed about the latest developments.
Frequently Asked Questions
What are the pros & cons of a Gold IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax 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. However, there are also disadvantages to this type of investment.
You may lose all your accumulated savings if you take too much out of your IRA. 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 from your IRA you will most likely be required to pay a penalty.
The downside is that managing your IRA requires fees. Many banks charge between 0.5% and 2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers restrict the amount you can own in gold. Others allow you to pick your weight.
You will also have to decide whether to purchase futures or physical gold. Gold futures contracts are more expensive than physical gold. Futures contracts offer flexibility for buying gold. They allow you to set up a contract with a specific expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy does NOT include theft protection and loss due to fire or flood. It does include coverage for damage due to natural disasters. You may consider adding additional coverage if you live in an area at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs will not be covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
You must first contact a qualified custodian before you open a gold IRA. A custodian keeps track of your investments and ensures that you comply with federal regulations. Custodians can't sell assets. Instead, they must keep your assets for as long you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Also, you should specify how much each month you plan to invest.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. After reviewing your application, the company will send you a confirmation mail.
Consider consulting a financial advisor when opening a golden IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Can the government take your gold
Your gold is yours and the government cannot take it. It is yours because you worked hard for it. It belongs entirely to you. There may be exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. You can also lose precious metals if you owe taxes. You can keep your gold even if your taxes are not paid.
Is buying gold a good way to save money for retirement?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion is the most popular method of investing in gold. There are other ways to invest gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. Owning gold stocks should work well if you need cash flow from your investment.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
External Links
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
investopedia.com
How To
The best way to buy gold (or silver) online
To buy gold, you must first understand how it works. Gold is a precious metallic similar to Platinum. Because of its resistance to corrosion and durability, it is very rare. It is hard to use, so most people prefer jewelry made of it to real bars of gold.
There are two types currently available: legal tender and bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins can only be used as investment currency. They increase in value due to inflation.
They cannot be used in currency exchanges. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. For every dollar spent, the buyer gets 1 gram of Gold.
When you are looking to purchase gold, the next thing to know is where to get it. There are several options available if your goal is to purchase gold from a dealer. First, your local currency shop is a good place to start. You might also consider going through a reputable online seller 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 typically charge 10% to 15% commission on each transaction. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. This option is often a great choice for investing gold as it allows you more control over its price.
An alternative option to buying gold is to buy physical gold. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. To ensure that your physical gold remains safe, you need to secure it in an impenetrable container such as a vault or safety deposit box.
When buying gold on your own, you can visit a bank or a pawnshop. A bank will be able to provide you with a loan for the amount of money you want to invest in 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.
A third way to buy gold? Simply ask someone else! Selling gold is also easy. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
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By: Kevin Helms
Title: Jim Cramer Warns of Bitcoin Selloff, but Leaves Room for Speculation
Sourced From: news.bitcoin.com/mad-money-host-jim-cramer-sees-nasty-beginning-to-bitcoin-selloff/
Published Date: Sun, 21 Jan 2024 01:00:08 +0000
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