Bitcoin ETF Hype Signals Sell Signal for Experienced Traders
According to veteran trader Peter Brandt, the current hype surrounding bitcoin exchange-traded funds (ETFs) may be a signal for experienced traders to sell their holdings. Brandt believes that the expected approval of spot bitcoin ETFs is a classic "buy the rumor, sell the news" event.
Brandt Challenges Bitcoin Maximalists' View
Brandt questions the commitment of bitcoin maximalists to the values of bitcoin. He finds it ironic that these maximalists, who believe in the decentralization and independence of bitcoin from government control, are eagerly awaiting the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). He wonders how bitcoin maximalists view the SEC and ETFs as the savior of their financial future when they value bitcoin's independence from government influence.
Time for Experienced Traders to Exit
Brandt refers to a guide used by experienced traders and notes that when the average person is eager to enter the market, it is usually a signal for old-timers to exit. He likens the current ETF hype, which has driven bitcoin to its highest USD value in nearly two years, to this scenario. While Brandt acknowledges that his observations may be wrong, he invites those who are smarter than him to share their thoughts on the subject.
Contradicting Views
Some social media users disagree with Brandt's assertions. They believe that if the SEC approves multiple spot bitcoin ETFs, the price of bitcoin will continue to rise. They argue that bitcoin may never be available at its current prices again and that countries may adopt bitcoin to back up their currencies. Others argue that Brandt's observations only apply to the average European or American investor, as bitcoiners from other parts of the world are more interested in the parallel financial system that bitcoin provides.
Conclusion
The approval of spot bitcoin ETFs by the SEC has generated significant hype in the cryptocurrency market. While some traders view this as an opportunity to buy, others, like Peter Brandt, see it as a signal to sell. The debate continues among traders and investors, and only time will tell the true impact of bitcoin ETFs on the cryptocurrency market.
Frequently Asked Questions
How much of your portfolio should be in precious metals?
First, let's define precious metals to answer the question. Precious metals have elements with an extremely high worth relative to other commodity. This makes them valuable in investment and trading. Gold is by far the most common precious metal traded today.
There are also many other precious metals such as platinum and silver. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also relatively unaffected both by inflation and deflation.
All precious metals prices tend to rise with the overall market. But they don't always move in tandem with one another. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors are more likely to expect lower interest rates making bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They become less expensive and have a lower value because they are limited.
You must therefore diversify your investments in precious metals to reap the maximum profits. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
This could be changing, according to some experts. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
These are some important things to remember if your goal is to invest in gold.
- First, consider whether or not you need the money you're saving for retirement. You can save money for retirement even if you don't invest in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, ensure you fully understand the risks involved in buying gold. Each type offers varying levels and levels of security.
- Don't forget that gold does not offer the same safety level as a bank accounts. You may lose your gold coins and never be able to recover them.
If you are thinking of buying gold, do your research. If you already have gold, make sure you protect it.
What precious metals can you invest in for retirement?
It is gold and silver that are the best precious metal investment. They're both easy to buy and sell and have been around forever. These are great options to diversify your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is very stable and secure. It is a good way for wealth preservation during uncertain times.
Silver: Silver has always been popular among investors. This is a great choice for people who want to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It is, however, more expensive than its competitors.
Rhodium: Rhodium can be used in catalytic convertors. It is also used for jewelry making. It is also quite affordable compared with other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
How do I Withdraw from an IRA with Precious Metals?
First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option will require you to pay taxes on the amount that you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. You can save money by opening an account with a debit card instead of a credit card to avoid paying unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Either way, you'll need to weigh the pros and cons of each before choosing one.
Bullion bars are easier to store than individual coins. However, you'll need to count every coin individually. However, you can easily track the value of individual coins by storing them in separate containers.
Some prefer to keep their money in a vault. Others prefer to store them in a safe deposit box. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
Statistics
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (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)
- 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)
External Links
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Are you interested in keeping 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 market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
bbb.org
finance.yahoo.com
How To
The best way to buy gold (or silver) online
Before you can buy gold, it is important to understand its workings. Gold is a precious metal similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
Two types of gold coins are available today: the legal tender type and the bullion type. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They cannot be used in currency exchanges. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Each dollar spent by the buyer is worth 1 gram.
Next, you need to find out where to buy gold. There are many options for buying gold directly from dealers. First, go to your local coin shop. You could also look into eBay or other reputable websites. You might also consider buying gold from an online private seller.
Private sellers are individuals who offer to sell gold at retail or wholesale prices. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. That means you would get back less money from a private seller than from a coin shop or eBay. This is a great option for gold investing because you have more control over the item’s price.
Another way to buy gold is by investing 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.
You can either visit a bank, pawnshop or bank to buy gold. A bank can give you a loan up to the amount you intend to invest in Gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks typically charge higher interest rates than pawn shops.
A third way to buy gold? Simply ask someone else! Selling gold can be as easy as selling. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
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By: Terence Zimwara
Title: Peter Brandt Questions Bitcoin Maximalists' Commitment to BTC Values
Sourced From: news.bitcoin.com/veteran-trader-peter-brandt-labels-bitcoin-etf-a-classic-buy-the-rumor-sell-the-news-event/
Published Date: Wed, 10 Jan 2024 19:40:15 +0000
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