On Monday, Jan. 22, 2024, the price of bitcoin fell below the $40K mark for the first time in 48 days, according to market analysis. Over the past 24 hours, bitcoin experienced a 4% decline, with a 14.2% decrease observed in the previous two weeks.
Bitcoin Falls Below $40K Amid Market Turbulence
Since early December 2023, specifically since Dec. 5, 2023, the price of bitcoin has remained above the $40K threshold. The leading cryptocurrency reached a peak of $49,000 on Jan. 10, 2024, but this high was short-lived. The price then dropped to the $45K range and has been struggling to maintain its position above $40K in recent days. Finally, at 2:15 p.m. Eastern Time (ET) on Monday afternoon, it dipped below the $40K mark.
Currently, the value of bitcoin has fallen to approximately $39,400, with a trade volume of about $25.81 billion at 2:15 p.m. This is a significant increase from the $16.58 billion recorded at 8:00 a.m. (ET). Short-term indicators suggest that bitcoin (BTC) is experiencing a downward trend characterized by increased volatility and a notable decline in value. The surge in trading volume during this downturn suggests a possible panic-induced selling spree, particularly as the price falls below the psychologically important $40,000 level.
The recent price drop in BTC has also filled a CME gap that existed around the $39,600 mark. Within an hour of the plunge, long positions in bitcoin totaling $25.57 million have been liquidated, with $65.78 million in BTC longs eliminated throughout the day.
This decline in bitcoin's value has had a ripple effect on numerous other cryptocurrencies, contributing to a 3.02% decline in the overall $1.59 trillion crypto market on Monday. Ethereum has dropped by 6%, BNB by 4.5%, SOL by 9.4%, and XRP has seen a 4.7% decrease during the same timeframe.
What are your thoughts on bitcoin falling below the $40K range on Monday? Share your opinions in the comments section below.
Frequently Asked Questions
Do You Need to Open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. You cannot recover any money you have invested. All your investments can be lost due to theft, fire or flood.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items are timeless and have a lifetime value. You would probably get more if you sold them today than you paid when they were first created.
You should choose a reputable firm that offers competitive rates. You should also consider using a third party custodian to protect your assets and give you access at any time.
If you decide to open an account, remember that you won't see any returns until after you retire. Keep your eyes open for the future.
How does a gold IRA account work?
You can purchase physical bullion gold coins at any point in time. You don’t have to wait to begin investing in gold.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold assets will not be subjected tax upon your death.
Your heirs inherit your gold without paying capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as an intermediary between you and IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual returns.
Taxes will apply to gold that you take out of an IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
It's best not to take out more 50% of your total IRA investments each year. You could end up with severe financial consequences.
What is the tax on gold in Roth IRAs?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules that govern these accounts differ from one state to the next. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. You can delay until April 1st in Massachusetts. New York allows you to wait until age 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
How can you withdraw from an IRA of Precious Metals?
You first need to decide if you want to withdraw money from an IRA account. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, figure out how much money will be taken out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know what percentage of your total savings you'd like to convert into cash, you'll need to determine which type of IRA you want to use. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. However, a debit card is better than a card. This will save you unnecessary fees.
When it's time to make withdrawals from your precious-metal IRA, you'll need a place to keep your coins safe. Some storage facilities will take bullion bars while others require you only to purchase individual coins. You'll have to weigh the pros of each option before you make a decision.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. You will need to count each coin individually. You can track their value by keeping individual coins.
Some people prefer to keep their coins in a vault. Others prefer to store their coins in a vault. 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.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (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)
- 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)
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not exactly legal – WSJ
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Investing with gold or stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because many people believe gold is no longer financially profitable. This belief stems from the fact that most people see gold prices being driven down by the global economy. They believe they would lose their money if they invested gold. In reality, however, there are still significant benefits that you can get when investing in gold. Let's take a look at some of the benefits.
Gold is one of the oldest forms of currency known to man. It has been used for thousands of years. It is a valuable store of value that has been used by many people throughout the world. It continues to be used in South Africa, as a way of paying their citizens.
Consider the price per gram when you decide whether you should invest in or not. You must determine how much gold bullion you can afford per gram before you consider buying it. You could contact a local jeweler to find out what their current market rate is.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. The price of gold may have fallen, but the production costs haven’t.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. However, if you are planning on doing so for long-term investments, then it is worth considering. Selling your gold at a higher value than what you bought can help you make money.
We hope that this article has helped you gain a better understanding and appreciation for gold as an investment option. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only then can you make informed decisions.
By: Jamie Redman
Title: Bitcoin Price Drops Below $40K, Sparking Market-Wide Crypto Slide
Sourced From: news.bitcoin.com/bitcoin-plummets-below-40k-for-first-time-in-48-days-triggering-market-wide-crypto-slide/
Published Date: Mon, 22 Jan 2024 20:22:40 +0000