Introduction
Global asset management firm Alliance Bernstein has made a bold prediction, stating that the price of bitcoin will reach $150,000 by 2025. This optimistic forecast is based on the firm's expectation of imminent approvals of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Leading asset management companies like Blackrock and Fidelity are also expected to be involved in these approvals.
The Analyst's View
Gautam Chhugani, a senior analyst specializing in digital assets at Alliance Bernstein, expressed his confidence in a note released on Tuesday. He believes that the SEC will soon approve spot bitcoin ETFs, which will have a significant impact on the price of bitcoin. Chhugani emphasizes that the timing of this development is crucial and highlights the potential involvement of major asset managers such as Blackrock and Fidelity.
Chhugani further explains that the upcoming bitcoin halving in April 2022 will lead to the elimination of "losing miners." This process will create favorable conditions for the remaining participants, potentially resulting in significant profits.
The Role of Spot Bitcoin ETFs
Alliance Bernstein predicts that the approval of spot bitcoin ETFs will lead to approximately 10% of bitcoin's circulating supply being invested in these funds. Currently, Grayscale's Bitcoin Trust (GBTC) is the only similar product available. However, the crypto asset manager has filed with the SEC to convert GBTC into a spot bitcoin ETF. Although the initial proposal was rejected, a court ruling favored the crypto firm and ordered the SEC to reevaluate its application.
Bernstein recently stated that a spot bitcoin ETF is likely to be approved in January 2022. Speculation surrounding the launch of Blackrock's spot bitcoin ETF has also contributed to the recent surge in bitcoin's price. Analysts, including those at JPMorgan, anticipate that the SEC may approve multiple spot bitcoin ETFs simultaneously.
SEC's Consideration of Bitcoin ETF Applications
SEC Chairman Gary Gensler has revealed that the securities watchdog is currently reviewing eight to ten spot bitcoin ETF applications. The list of applicants includes notable names such as ARK Investment Management, Bitwise, Wisdomtree, and Invesco. The first quarter of 2022 is expected to see the latest possible review dates for eight applications, with three more scheduled for the second quarter.
Conclusion
Alliance Bernstein's prediction of bitcoin reaching $150,000 by 2025 is based on its expectation of imminent approvals for spot bitcoin ETFs by the SEC. The firm's senior analyst highlights the potential involvement of major asset management companies like Blackrock and Fidelity in these approvals. If these predictions come true, the price of bitcoin could experience a significant surge in the coming years.
What are your thoughts on this prediction? Do you believe that the price of bitcoin will reach $150,000 by 2025? Share your opinions in the comments section below.
Frequently Asked Questions
How do I choose the right IRA for me?
Understanding your account type is the first step to finding the best IRA. This is whether you want a Roth IRA, a traditional IRA, or both. Also, you should know how much money is available for investment.
The next step in determining the right provider for your situation is to decide. Some providers offer both accounts while others are specialized in one.
Last, consider the fees associated to each option. There are many fees that vary between providers. They may include annual maintenance fees or other charges. Some providers charge a monthly cost based on how many shares you own. Others may only charge one quarter.
Do you need to open a Precious Metal IRA
It all depends on your investment goals and risk tolerance.
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, You can also diversify your portfolio with them.
Furthermore, the prices of gold and silver tend to move together. This makes them an excellent choice for investors in both assets.
You should not invest in precious-metal IRAs if it is not your intention to use your money for retirement, or if you are unwilling to take any risks.
How does an IRA for gold and/or silver work?
An IRA for gold and/or silver allows you to invest without tax in precious metals such as silver and gold. They make a great investment choice for those looking to diversify.
You do not have to pay income tax on interest earned from these accounts if you are over 59 1/2. You also do not have to pay capital gains tax on any appreciation in the account's value. This account has a limit on how much you can put in. The minimum amount you can put into this account is $10,000. You cannot invest at all if you are under age 59 1/2. The maximum annual contribution is $5,000.
If you die prior to retirement, your beneficiaries may not receive the full amount. After you have paid all your expenses, your estate should include sufficient assets to cover the balance of your account.
Some banks offer a silver and gold IRA option. Others require you open a regular broker account, through which shares or certificates can be purchased.
What is the best precious metal to invest in?
Investments in gold offer high returns on their capital. It can also protect against inflation and other risks. The price of gold tends to rise as people become concerned about inflation.
It's a good idea to purchase gold futures. These contracts assure you that you will receive a specified amount of precious metal at a fixed price.
However, gold futures aren't suitable for everyone. Some people prefer to own physical gold instead.
They can trade their precious metals with others. They can also make a profit by selling their gold at any time they desire.
Some people choose to not pay taxes on gold. They purchase gold directly from governments to achieve this.
This process requires you to make several trips to your local post office. You must first convert any existing gold into coins or bars.
Next, you will need to stamp the coins or bars. Finally, send the coins or bars to the US Mint. They melt the bars and coins into new coins.
These bars and coins are stamped with the original stamps. They are therefore legal tender.
If you buy gold from the US Mint directly, you won’t have to pay tax.
Decide what precious metal do you want to invest?
Is a gold IRA worth it?
Yes, but not as much. It depends on how much you're willing to risk. A $10,000 investment per year for 20 years could lead to $1 million by retirement age. You'll end up losing everything if you place all your eggs in the same basket.
Diversifying your investments is important. When there is inflation, gold does well. You want to invest in an investment asset that rises with inflation. Stocks excel at this because they rise with increased profits. This is also true for bonds. They pay interest each and every year. They're very useful during periods of economic growth.
What happens when inflation is absent? In deflationary periods stocks and bonds both fall in value. Investors should not put all of their savings in one investment such as a stock mutual fund or bond.
Instead, they should diversify their investments by investing in different types of funds. They could invest both in stocks and bonds, for instance. They could invest in both cash as well as bonds.
This way, they have exposure to both sides of the coin. They can see both the inflation and the deflation sides of the coin. They will still see a return in time.
Statistics
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.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)
- 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)
External Links
wsj.com
investopedia.com
takemetothesite.com
regalassets.com
How To
Things to Remember about the Best Precious Metals Ira of 2022
Precious Metals Ira, one of the most preferred investment options among investors, is one. This article will show you how to invest in precious metals and what makes it so appealing.
These assets are renowned for their long-term potential growth. Gold prices have been able to show remarkable returns over the past 200 years, according to historical data. Over the past 200 years, gold has increased from $20 per ounce to almost $1900 per ounce. The S&P 500 Index was only up by 50%.
Gold is also considered a haven during times of economic uncertainty. When the stock markets is down, people tend not to hold onto their stocks but rather move into the safety and security of gold. The safety of gold is also considered an insurance against inflation. Many economists believe that inflation will continue to exist. They believe that physical gold can be used to protect your savings against future price rises.
Before you buy any precious metal, such as silver, gold, palladium or platinum, there are some things you should consider. First, you should know whether you want to invest in bullion bars or coins. Bullion bars are usually bought in large quantities (like 100 ounces) and stored away until needed. You can also buy bullion bars in smaller quantities with coins.
The second thing you need to consider is where you will store your precious metals. Certain countries are more secure than others. If you are in the US, it might be a good idea to store your precious metals abroad. If you are thinking of storing your precious metals in Switzerland, however, you might be wondering why.
Finally, decide whether you want investment in precious metals directly (or through precious metals exchange traded funds) (ETFs). ETFs, which track the performance different commodities like gold, are financial instruments. These are a way to have exposure to precious metals but not necessarily own them.
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By: Kevin Helms
Title: Alliance Bernstein Predicts Bitcoin Price to Reach $150,000 by 2025
Sourced From: news.bitcoin.com/analyst-predicts-bitcoin-price-rising-to-150000-by-2025-imminent-approval-of-spot-bitcoin-etfs-expected/
Published Date: Thu, 02 Nov 2023 01:30:40 +0000
