Standard Chartered's $200K Bitcoin Prediction
Standard Chartered, a global bank, has made a bold prediction that the price of bitcoin could surge to $200,000 in 2025 if spot bitcoin exchange-traded funds (ETFs) are approved by the U.S. Securities and Exchange Commission (SEC). According to the bank's analysts, the approval of ETFs would be a significant moment for bitcoin's institutional adoption, resulting in increased investments and a positive impact on its price.
Standard Chartered's Analysis
Standard Chartered's Global Research recently released a note discussing the potential upside of bitcoin's price if spot bitcoin ETFs are approved by the SEC. The note, authored by Geoff Kendrick, the bank's head of crypto research, and Suki Cooper, a precious metal analyst at Standard Chartered Bank NY Branch, highlights the following:
– ETF approval would be a crucial catalyst for bitcoin's price increase.
– Institutional money would be more likely to invest in bitcoin, leading to significant inflows and price appreciation.
– Comparing it to the introduction of the first U.S.-based gold ETP in 2004, the analysts anticipate similar gains for bitcoin over a shorter period.
– They expect bitcoin's price to reach $100,000 by the end of 2024 and potentially hit $200,000 by the end of 2025 if ETF-related inflows materialize as expected.
– The analysts estimate that between 437,000 and 1.32 million new bitcoins could be held in spot U.S. ETFs by the end of 2024, with a total value of $50-100 billion in USD terms.
Standard Chartered's Previous Predictions
Standard Chartered has been vocal about its positive outlook on bitcoin in the past. Last year, the bank declared that the "crypto winter" had ended, and in November, it stated that the "crypto spring" had arrived. These statements emphasized the bank's belief that bitcoin could reach $100,000 sooner than previously expected.
Conclusion
The prediction made by Standard Chartered that bitcoin's price could reach $200,000 in 2025 with the approval of spot bitcoin ETFs by the SEC has garnered attention in the crypto community. While the future of bitcoin's price remains uncertain, the approval of ETFs could potentially bring significant institutional investments and drive its price upwards. It will be interesting to see how the market evolves and if the prediction comes to fruition.
What are your thoughts on Standard Chartered's prediction? Do you believe bitcoin will reach $200,000 in 2025? Share your opinions in the comments below.
Frequently Asked Questions
Is it possible to hold a gold ETF within a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
You can also get an Individual Retirement Annuity, or IRA. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs will not be taxed
Which precious metals are best to invest in retirement?
Silver and gold are two of the most valuable precious metals. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It's stable and safe. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has always been popular among investors. It is an excellent choice for investors who wish to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. It's however much more costly than any of its counterparts.
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: Palladium is similar to platinum, but it's less rare. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What is the benefit of a gold IRA?
There are many advantages to a gold IRA. You can diversify your portfolio with this investment vehicle. You control how much money goes into each account and when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. They are readily available at most banks and brokerages. Withdrawals can be made instantly without the need to pay fees or penalties.
But there are downsides. Gold is historically volatile. So it's essential to understand why you're investing in gold. Is it for growth or safety? Is it for insurance purposes or a long-term strategy? Only after you have this information will you make an informed decision.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce will not be sufficient to meet all your requirements. You may need several ounces, depending on what you intend to do with your precious gold.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even get by with less than one ounce. But you won't be able to buy anything else with those funds.
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. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
The rules that govern these accounts differ from one state to the next. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to delay withdrawals until April 1. And in New York, you have until age 70 1/2 . You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
Can the government take your gold?
Because you have it, the government can't take it. You have earned it by working hard for it. It is yours. This rule could be broken by exceptions. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. You can also lose precious metals if you owe taxes. 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.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement plans
investopedia.com
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Because of its intrinsic value, it was also widely traded. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This caused a drop in foreign currency demand which resulted in an increase of their prices. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. The U.S. government needed to find a solution to their debt because there was too much money in circulation. They sold some of their excess gold to Europe to pay off the debt.
Many European countries didn't trust the U.S. dollars and started to accept gold for payment. Many European countries started to accept paper money as a substitute for gold after World War I. The value of gold has significantly increased since then. Today, although the price fluctuates, gold remains one of the safest investments you can make.
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By: Kevin Helms
Title: Standard Chartered: Bitcoin Could Reach $200K in 2025 with Spot Bitcoin ETF Approval
Sourced From: news.bitcoin.com/standard-chartered-btc-could-hit-200k-in-2025-with-spot-bitcoin-etf-approval/
Published Date: Wed, 10 Jan 2024 01:00:47 +0000
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