Hey there, crypto enthusiasts! Today, we're diving into the recent turbulence in the world of Bitcoin. The cryptocurrency has taken a nosedive, dropping to a staggering low of $91,000, leaving investors on the edge of their seats. But fear not, we'll break down what's been going on and what this means for the future of Bitcoin.
The Federal Reserve's Influence on Bitcoin Price
Uncertainty Looms Over Interest Rates
Picture this: the Federal Reserve is contemplating interest rate cuts in December, sending traders into a frenzy. This uncertainty has played a significant role in Bitcoin's sharp decline. As of now, Bitcoin is struggling at $91,158, according to Bitcoin Magazine data.
Policy-makers Tread Cautiously
With economic data missing due to a recent government shutdown, policymakers like Fed Chair Jerome Powell and Boston Fed President Susan Collins are tip-toeing around rate decisions. Powell emphasized that a rate reduction is not guaranteed, while Collins suggests maintaining current rates to manage inflation and employment concerns.
Market Sentiment and Institutional Withdrawals
Market Sentiment Takes a Hit
Imagine a seesaw of emotions in the market. Analysts point to a shift in sentiment as a driving force behind the latest crypto slump. Investors are urged not to underestimate the impact of the Fed's stance, leading to substantial market sell-offs.
Institutional Pullback
Big players are stepping back, with crypto ETFs witnessing massive outflows. Institutions withdrew $1.8 billion last week, including a whopping $870 million from Bitcoin products in a single day. This withdrawal frenzy is shaking up the crypto world.
Bitcoin's Rollercoaster Ride
From Trump's Rally to China's Tariffs
Bitcoin's rollercoaster ride includes a rally triggered by Trump's pro-crypto stance, only to crash post his proposed tariffs on Chinese imports. This event led to a significant market liquidation, wiping out billions and leaving major assets struggling to recover.
Technical Indicators and Altcoin Woes
Technical indicators are flashing warning signs, with Bitcoin's "death cross" painting a bearish picture. Altcoins like Ethereum and Solana are also taking a hit, contributing to a $1 trillion market downturn. But hey, past trends hint at potential rebounds.
Bitcoin and Crypto Stocks in Decline
Stocks Mirror Bitcoin's Fall
Crypto-related stocks are feeling the heat of Bitcoin's plummet. Companies like Coinbase Global Inc and Miners are witnessing significant losses. Strategy Inc and miners like MARA Holdings Inc and Riot Platforms Inc are all under pressure due to the crypto market's downward spiral.
Strategy Inc's Bitcoin Purchases
Strategy Inc recently made a hefty Bitcoin purchase, acquiring thousands of BTC last week. This move emphasizes their commitment to expanding their Bitcoin exposure. Despite the dip in Bitcoin price, Strategy remains bullish on the cryptocurrency.
Conclusion: What Lies Ahead for Bitcoin?
As we eagerly await the Federal Open Market Committee's December decision, the crypto world braces for potential outcomes. Will Bitcoin see further losses, or could we witness a "Santa rally" in the near future? Stay tuned as the drama unfolds!
Frequently Asked Questions
What are the pros & con's of a golden IRA?
For those who don't have the ability to access traditional banking services but want to diversify their portfolios, a gold IRA can be a great investment option. You can invest in precious metals like gold, silver, or platinum, without having to pay taxes until the gains are withdrawn.
However, early withdrawals of funds will incur ordinary income tax. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
A gold IRA is a great option if you want to own gold but not worry about taxes.
What precious metals can be allowed in an IRA?
Gold is the most widely used precious metal for IRA account accounts. Investments in gold bullion coins or bars can be made as well.
Precious metals can be considered safe investments as they don't lose their value over time. They're also considered a great way to diversify an investment portfolio.
Precious Metals include palladium, silver, and platinum. These metals all share similar properties. Each one has its own uses.
Platinum is used to make jewelry, for example. Palladium is used to create catalysts. Silver is used to producing coins.
You should consider the amount you will spend on your gold before you decide which precious metal. It may be more cost-effective to purchase gold at lower prices per ounce.
Also, think about whether or not you wish to keep your investment secret. If so, then you should go with palladium.
Palladium is more expensive than gold. It's also more rare than gold. It's likely that you will have to pay more.
The storage fees of gold and silver are also important factors to consider when making a decision between them. Gold is stored by weight. For larger quantities of gold, you will be charged a higher storage fee.
Silver can be stored by volume. You'll be charged less for smaller amounts.
Keep in mind all IRS rules when you store precious metals inside an IRA. You must keep track of all transactions and report them to the IRS.
Do you need to open a Precious Metal IRA
Answers will depend on whether you have an investment goal or how high you are willing and able to tolerate risk.
If you plan to use the money for retirement, you should open an account now.
Because precious metals are highly likely to appreciate over time, They can also be used to diversify.
In addition, gold and silver prices tend to move together. This makes them an excellent choice for investors in both assets.
Do not invest in precious metals IRAs if your goal is to save money or take on any risk.
Is it possible to take physical ownership of gold from my IRA
Many people wonder if they are allowed to possess physical gold within an IRA account. This is a legitimate question since there is no legal way.
If you take a closer look at the law, there is nothing that can stop you from having gold in your IRA.
The problem is that most people don't realize how much money they could save by putting their gold in an IRA instead of keeping it in their own homes.
It's easy to throw away gold coins but not so easy to put them in an IRA. You'll have to pay twice taxes if you keep your gold in your home. You will pay taxes twice: once to the IRS and one for the state in which you live.
It is possible to lose your gold and pay twice as much tax. So why would you choose to keep it in your home?
It might seem that you want the security of knowing your gold is safe inside your home. You can protect your gold from theft by storing it somewhere more secure.
If you're planning on visiting frequently, it is best to keep your gold safe at home. Thieves can easily steal your gold if you don't keep it safe.
An insured vault is a better choice for gold storage. This will ensure that your gold is protected against fire, flood, earthquake and robbery.
Another benefit to keeping your gold in vaults is that you won’t have to pay any property taxes. Instead, you will have to pay income tax for any gains you make selling your gold.
If you prefer not to pay tax on your precious metals, an IRA may be a good option. An IRA will allow you to avoid income tax while earning interest on your gold.
Since you aren't required to pay capital gains tax on your gold, you'll have access to the full value of your investment whenever you want to cash it out.
You won't have to move your gold because IRAs are federally regulated.
Bottom line: An IRA can allow you to own gold. Fear of theft is all that holds you back.
Which is better: sterling silver or 14k-gold?
Although gold and silver can be strong metals, sterling silver is far less expensive as it contains 92% silver instead of 24%.
Sterling silver, also known as fine or sterling silver, is made of a combination of silver and other metals like copper and zinc.
Gold is generally considered to be very strong. It takes a lot of pressure to break it down. It would be much easier to break it apart if you dropped an object on top a piece gold.
But silver isn’t nearly as sturdy as gold. If you dropped an item onto silver sheets, it would likely fold and bend without cracking.
Silver is often used in jewelry and coins. Because of this, silver's value is subject to fluctuations based upon supply and demand.
What precious metals do you have that you can invest in for your retirement?
It is important to know what you have already saved and where money you are saving for retirement. You can start by making a list of all your assets. This includes stocks, bonds and mutual funds, as well as certificates of deposit (CDs), life policies, annuities and 401(k), plans, real estate investments and other assets, such precious metals. Add all these items together to calculate how much money you have for investment.
If you haven't already done so, you may want to consider opening a Roth IRA account if you're younger than 59 1/2 years old. While a Roth IRA does not allow you to deduct contributions from taxable income, a traditional IRA allows for that. However, you will not be able take tax deductions on future earnings.
You may need additional money if you decide you want more. Start with a regular broker account.
Statistics
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
External Links
regalassets.com
en.wikipedia.org
kitco.com
investopedia.com
How To
How to Start Buying Silver with Your IRA
How to purchase silver with your IRA – The best way of investing in silver and gold is to directly own physical bullion. Silver coins and bars are the most popular form of investment because they offer diversification, liquidity, and convenience.However, many prefer owning physical bullion over paper certificates or electronic currency.
There are several options for buying precious metals, such as silver and gold. You can purchase them directly through their producers, which include mining companies or refiners. If you don't want the hassle of dealing with a producer directly, you can purchase them from a dealer that buys and trades bullion products.
This article will tell you how to start investing with your IRA in silver.
- Investing directly in Gold & Silver – This is your first choice for buying precious metals. This involves getting the bullion and having it delivered to your doorstep. Some investors keep their bullion at home, while others store it in a secure storage unit. Protect your precious metal by storing it correctly. Many storage facilities offer insurance that covers theft, fire, and damage. You could lose your investments due either to natural disasters, human error, or even insurance. It is always a good idea to store precious metals in safe deposit boxes at banks or credit unions.
- Buy Precious Metals Online: If you don't want to carry around heavy boxes full of precious metals, there are other options. Bullion dealers can sell bullion in various forms, including bars or coins. Coins come in different sizes, shapes, and designs. Generally speaking, coins are easier to carry around and less expensive than bars. There are many sizes and weights of bars. Some bars are heavy and weigh hundreds of pounds while others only weigh a few grams. When choosing which bar to buy, it is important to consider what you will use it for. You might consider a smaller bar if you intend to give it as a gift. If you are looking to add it as a gift, or to proudly display it, you may want to spend a bit more and buy something larger.
- Buying Precious metal from Dealers-A third option is buying bullion through a dealer. Most dealers have a specific area of expertise, usually in silver or gold. Some dealers are experts in specific types of bullion such as rounds and minted coins. Others are more skilled in certain regions. Some specialize in bulk purchasing. No matter what dealer you choose you will find that they offer great prices and flexible payment options.
- Buy Precious Metals Through Retirement Accounts. Although it is not considered an “investment”, investing in retirement accounts can provide exposure to precious metals. To qualify for tax benefits under Section 219 of the IRS Code, you must invest in precious metals through a qualified retirement account. These accounts include IRAs. These accounts are often set up to help you save more for retirement. They offer higher returns than most other investment vehicles. These accounts also allow you to diversify across multiple metals. The drawback? Investments in retirement accounts aren't available to everyone. Only employees who have been sponsored by an employer can invest in retirement accounts.
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By: Micah Zimmerman
Title: Bitcoin Price Plummets to $91,000 and Hits New Lows
Sourced From: bitcoinmagazine.com/markets/bitcoin-price-continues-fall-to-910000
Published Date: Mon, 17 Nov 2025 20:27:36 +0000
