Bitcoin Price Hits $124,000 Milestone Amid ETF Growth and Dollar Concerns

Bitcoin Magazine

Bitcoin Price Surges to $124,000 As ETFs Surge and Investors Eye Dollar Weakness

Hey there, crypto enthusiasts! Exciting news on the Bitcoin front – the price has skyrocketed past $124,000, making waves after reaching the mid-$120,000 range in the last 24 hours.

Bitcoin's Market Momentum

The Bitcoin Surge

Bitcoin recently hit remarkable highs above $126,000, but a slight pullback followed as investors cashed out, influenced by a stronger U.S. dollar challenging the concept of "debasement-trade" flows. As of now, Bitcoin is hovering around $123,962.

Why Investors Are Turning to Bitcoin

More and more investors are turning to Bitcoin as a safeguard against potential dollar devaluation, engaging in what traders call "debasement trades."

The Role of ETFs

The recent surge was fueled by significant inflows into Bitcoin exchange-traded funds (ETFs) and speculative plays on fiat currency depreciation during the prolonged U.S. government shutdown.

According to Bloomberg analyst Eric Balchunas, BlackRock’s IBIT stood out with $3.5 billion in weekly inflows, representing 10% of total ETF net flows. This surge in Bitcoin ETF demand highlights a growing interest in these investment instruments.

Launched less than two years ago, IBIT is nearing $100 billion in assets under management, making it BlackRock’s most profitable fund — surpassing even long-standing products.

Bitcoin's Future Trajectory

Potential for Further Growth

Experts believe that the recent correction, bringing Bitcoin to around $122,000, is a healthy development that could pave the way for future gains.

Market analysts suggest that support is strong around $120,000, with resistance expected at $135,000. "Remember, dips are opportunities," as noted by market analyst Mags on X.

Market Confidence and Predictions

Onchain data reveals a robust buying momentum, with Bitcoin’s relative strength index climbing from 44 to 66 in the past week, indicating increasing market confidence.

The ongoing U.S. fiscal deadlock is likely intensifying the demand for perceived safe-haven assets. Industry experts foresee Bitcoin potentially hitting $135,000 soon and even aiming for $200,000 by year-end under current market conditions.

Gold, too, is on an upward trajectory, supported by central bank acquisitions and anticipations of future Fed actions.

Additionally, short-term Bitcoin whales, holding over 1,000 BTC obtained in the last five months, are currently sitting on approximately $10.1 billion in unrealized gains, according to CryptoQuant.

Exciting times ahead for the crypto market! Stay tuned for more updates and insights. Remember, the crypto world is full of surprises, and opportunities are waiting for those ready to dive in. Ready to ride the Bitcoin wave?

Frequently Asked Questions

Can I get physical ownership of gold in my IRA

Many people are curious if they can possess physical gold in an IRA. This is a legitimate concern because it is illegal.

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 simple to throw out gold coins but difficult to put them into an IRA. You'll have to pay twice taxes if you keep your gold in your home. Two taxes will be charged: one to the IRS, one to the state you live in.

There are two ways to lose your gold: pay taxes twice and keep it in your house. So why would you choose to keep it in your home?

You may argue that it is necessary to have the assurance that your gold safe in your home. But to protect yourself against theft, you should consider storing your gold somewhere more secure.

If you plan on visiting often, you shouldn't leave your precious gold 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. Your gold will be protected against fire, floods, earthquakes, and robbery.

Another benefit to keeping your gold in vaults is that you won’t have to pay any property taxes. You will have to pay income taxes on any gains from the sale of your gold.

If you'd rather avoid paying taxes on your gold, you may want to consider putting it in an IRA. An IRA will allow you to avoid income tax while earning interest on your gold.

Capital gains tax is not required on gold. If you decide to cash it out, you will have full access to its value.

And since IRAs are federally regulated, you won't have any trouble getting your gold transferred to another bank if you move.

The bottom line is that you can own gold in your IRA. The only thing holding you back is your fear of having it stolen.

How much should precious metals be included in your portfolio?

To protect yourself from inflation, investing in physical metals is the best option. This is because when you invest in precious metals, you buy into the future value of these assets, not just the current price. As prices rise, so does your investment's value.

Any gains you make from investments that you hold onto for at least five year will be tax-free. If you decide to sell your investments after that period, you will be subject to capital gains tax. Our website has more information about how to purchase gold coins.

Are gold and Silver IRAs a good idea or a bad idea?

This could be a good option for anyone looking to quickly invest in both silver or gold. There are many other options. Please feel free to reach out to us with any questions. We're always happy to help!

What precious metals will be allowed in an IRA account?

Gold is the most widely used precious metal for IRA account accounts. You can also invest in gold bullion bars and coins.

Precious metals can be considered safe investments as they don't lose their value over time. They are also an excellent way to diversify your investment portfolio.

Precious metals include palladium and platinum. These three metals all have similar properties. Each metal has its own use.

Platinum is used to make jewelry, for example. The catalysts are made from palladium. Silver is used to producing coins.

Think about how much you can afford to purchase your gold, before you make a decision on the precious metal. A lower-cost ounce of gold might be a better option.

Also, think about whether or not you wish to keep your investment secret. Palladium is the best option if you want to keep your investment private.

Palladium can be more valuable than gold. However, it is also rarer. It is likely you will need to pay more.

The storage fees of gold and silver are also important factors to consider when making a decision between them. You store gold by weight. So you'll pay a higher fee for storing larger amounts of gold.

Silver is stored according to its volume. Therefore, smaller amounts of silver will cost less.

If you decide to store your precious metals in an IRA, follow all IRS rules regarding gold and silver. You must keep track of all transactions and report them to the IRS.

What type of IRA is used for precious metals?

Most financial institutions and employers offer an Individual Retirement Account (IRA). This is an investment vehicle that most people can use. An IRA allows you to contribute money that is tax-deferred until it is withdrawn.

You can save taxes and pay them later with an IRA. This means more money deposited into your retirement plan today versus having to pay taxes on that money tomorrow.

An IRA's beauty is that earnings and contributions grow tax-free up to the time you withdraw them. When you do, there are penalties for early withdrawal.

You can also contribute to your IRA beyond age 50 without penalty. You'll owe income tax and a 10% federal penalty if you withdraw from your IRA in retirement.

Withdrawals that are made prior to the age of 60 1/2 are subjected to a 5% IRS tax penalty. A 3.4% IRS penalty is applicable to withdrawals made between the ages of 59 1/2 and 701/2.

The IRS will penalize withdrawals of more than $10,000 annually.

Can I store my gold IRA in my home?

Online brokerage accounts are the best way for you to invest your money. You'll have access to all the same investment options as if you were working with a traditional broker, but you don't need special licenses or qualifications. You don't have to pay any fees for investing.

Online brokers often offer free tools to help manage your portfolio. Many online brokers allow you to download charts that will show how your investments are performing.

Are precious metal IRAs a good investment?

Answers will depend on the amount of risk you are willing and able to take in order for your IRA account to lose value. They make sense if you have $10,000 in cash as long as you don't expect them to grow very quickly. These might not be the best options if you're looking to invest in assets that have the potential to rise in value (gold) and plan to save for retirement for many decades. These investments can also be subject to fees that could reduce any gains.

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)
Silver must be 99.9% pure • (forbes.com)
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)

External Links

How To

How to Buy Gold for Your Gold IRA

Precious metal is used to describe precious metals such as gold, silver (excluding helium), palladium, palladium or osmium), ruthenium, rose, rhenium, ruthenium and others. It is any element that has atomic numbers between 79 and 110 (excluding Helium), and which is valued because of its beauty and rarity. Precious metals include gold and silver. Precious metallics are frequently used as jewelry, money and industrial goods.

Due to supply and demand, the price of gold fluctuates every day. In the past decade, there has been a huge demand for precious metals as investors seek safe havens from unstable economies. The increased demand has led to a significant rise in prices. However, the increasing cost of production has made some people concerned about investing in precious metals.

Because it is rare and long-lasting, gold makes a great investment. The value of gold is never lost, which is unlike many other investments. You can also buy and sell gold, without having to pay taxes. You have two options to invest in gold. You have two options: you can buy gold bars and coins, or you can invest in futures contracts.

In-dispute liquidity can be achieved with physical gold bars or coins. They're easy to trade and store. They aren't very effective in protecting against inflation. To protect yourself from rising gold prices, you can consider buying gold bullion. Bullion, also known as physical gold and available in different sizes, is physical. Many billions come as one-ounce pieces while others are larger like kilobars. Bullion is usually stored in vaults protected from theft and fire.

Consider buying gold futures if you would rather own shares than actual gold. Futures let investors speculate on the future price of gold. You can buy gold futures and get exposed to the price of gold without actually owning it.

If I wanted to speculate about whether gold's price would rise or fall, I could buy a gold contract. My position when the contract expires is either “long”, or “short”. If I have a long contract, it means that I believe gold's price will rise. In exchange, I'll give money now and promise to get more when the contract ends. A short contract, on the other hand, means I believe the price of gold is going to drop. I'm willing and able to take the money now, in return for the promise that I will make less money later.

I will receive the amount of gold in the contract, plus interest, when the contract ends. This way I have exposure to the gold's price without having to actually hold it.

Because they are extremely difficult to counterfeit, precious metals make great investments. Precious metals can't be counterfeited like paper currency. However, new bills can be printed to make them look more authentic. Because of this, precious metals have traditionally held their value well over time.

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By: Micah Zimmerman
Title: Bitcoin Price Hits $124,000 Milestone Amid ETF Growth and Dollar Concerns
Sourced From: bitcoinmagazine.com/markets/bitcoin-price-surges-to-124000-as-etfs-surge-and-investors-eye-dollar-weakness
Published Date: Wed, 08 Oct 2025 17:28:14 +0000