Bitcoin and Ethereum, two leading cryptocurrencies, have recently witnessed a significant surge in their market values. The increase in Bitcoin price above $30,000 is largely fueled by the growing market anticipation that the U.S. Securities and Exchange Commission (SEC) may soon greenlight several spot Bitcoin ETFs.
Bitcoin's Stellar Performance
Bitcoin's market performance reached a high not seen in several months during the recent trading session. This bullish trend is primarily driven by the widespread belief that several spot Bitcoin exchange-traded funds (ETFs) could soon receive the nod from the SEC.
During the trading session, the BTC/USD pair rose above $30,000, reaching a peak of $30,104.09. This surge marked a significant recovery from the previous day's low of $28,449.96, making it the highest point Bitcoin has reached since July 23.
On a technical analysis level, the relative strength index (RSI) breaking through the 69.00 ceiling also played a part in driving these gains. As of the time of writing, the price strength stands at 71.14, indicating an overbought market condition.
There have been slight retractions in the market, likely due to profit-taking, with Bitcoin now trading at $29,475.77.
Ethereum's Rising Fortunes
Ethereum (ETH), another major player in the cryptocurrency market, also experienced a notable rise in value on Friday, with the cryptocurrency once again surpassing the $1,600 mark.
After Thursday's low of $1,553.03, the ETH/USD pair jumped to a peak of $1,628.61. This means Ethereum climbed to its highest point since the beginning of the week when the price exceeded $1,640.
This surge comes just days after market bulls rejected a fall below the $1,540 support point. Now, the bulls seem to be targeting resistance at the $1,650 level.
To reach this goal, the RSI, now at 51.81, will need to break through its own 55.00 ceiling.
With these recent market trends, many are left wondering if the momentum will continue to build over the weekend.
Frequently Asked Questions
Can I have a gold ETF in a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
Traditional IRAs allow contributions from both the employer and employee. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
You can also get an Individual Retirement Annuity, or IRA. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs will not be taxed
How much gold do you need in your portfolio?
The amount you make will depend on the amount of capital you have. Start small with $5k-10k. You could then rent out desks and office space as your business grows. This way, you don't have to worry about paying rent all at once. Only one month's rent is required.
It's also important to determine what type business you'll run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. You may get paid just once every 6 months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I recommend starting with $1k to $2k of gold, and then growing from there.
Is the government allowed to take your gold
Your gold is yours and the government cannot take it. You earned it through hard work. It belongs entirely to you. This rule may not apply to all cases. Your gold could be taken away if your crime was fraud against federal government. You can also lose precious metals if you owe taxes. However, even if taxes are not paid, gold is still your property.
Who owns the gold in a Gold IRA?
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
To find out what options you have, consult an accountant or financial planner.
How much should I contribute to my Roth IRA account?
Roth IRAs are retirement accounts where you deposit your own money tax-free. The account cannot be withdrawn from until you are 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
You cannot withhold your earnings from income taxes. You will pay income taxes when you withdraw your earnings. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's say you earn $10,000 each year after contributing. You would owe $3,500 in federal income taxes on the earnings. The remaining $6,500 is yours. Because you can only withdraw what you have initially contributed, this is all you can take out.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs are not allowed to allow you deductions for contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Should You Get Gold?
Gold was once considered an investment safe haven during times of economic crisis. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Experts believe this could change soon. They say that gold prices could rise dramatically with another global financial crisis.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
Consider these things if you are thinking of investing in gold.
- Before you start saving money for retirement, think about whether you really need it. You can save money for retirement even if you don't invest in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each offer varying degrees of security and flexibility.
- Remember that gold is not as safe as a bank account. If you lose your gold coins, you may never recover them.
You should do your research before buying gold. You should also ensure that you do everything you can to protect your gold.
Can I buy gold with my self-directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts are financial instruments that are based on gold's price. These financial instruments allow you to speculate about future prices without actually owning the metal. You can only hold physical bullion, which is real silver and gold bars.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- 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)
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
- Fraud Advisory: Precious Metals Fraud
By: Eliman Dambell
Title: Bitcoin and Ethereum Rally: A Technical Analysis
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-above-30000-as-etf-hopes-intensify/
Published Date: Fri, 20 Oct 2023 13:30:37 +0000