Analyzing Bitcoin's Potential Growth
Bitcoin (BTC), the dominant cryptocurrency in terms of market capitalization, has garnered significant attention in the digital currency landscape due to its strength and market dominance. Currently valued just below $34,000, BTC's future price trajectory has been explored in the latest report by finder.com, which gathers insights from 31 experts and industry specialists.
Insights from Fintech and Crypto Experts
The report, titled "Bitcoin to Hit $87,000 by 2025," provides a comprehensive analysis of Bitcoin's potential price movements based on the perspectives of 31 panelists within the sector. One of the key topics discussed in the report is the possibility of a spot Bitcoin exchange-traded fund (ETF) receiving regulatory approval. Interestingly, 47% of the experts believe that such approval would propel Bitcoin to unprecedented highs. Moreover, around 60% of the participants anticipate the green light for a spot Bitcoin ETF by 2024.
According to the consensus among the surveyed individuals, BTC's value is expected to reach $30,000 by the end of 2023, surpassing its previous all-time high of $69,000, and soaring to $87,000 by 2025. Mitesh Shah, the founder of Omnia Markets, projects that BTC will end this year at $35,000 and reach $105,000 by 2025. Shah represents the 20% of respondents who anticipate an ETF approval in the current year. He commented, "There is a growing consensus that the SEC will eventually approve a Bitcoin ETF, with Blackrock's application being the most likely candidate."
The Impact of a Bitcoin ETF Approval
The CEO of Omnia, in addition to the price predictions, further emphasized the potential consequences of a Bitcoin ETF approval. He stated, "The approval of any Bitcoin ETF would open the floodgates for institutional investment, and the announcement of such approval would likely result in an immediate spike in Bitcoin's price."
The Significance of the 2024 BTC Halving Event
The impending BTC halving event in 2024 is identified as a crucial milestone in Bitcoin's timeline. 57% of the experts surveyed by Finder anticipate a modest increase in Bitcoin's price in the months leading up to the halving event. This pattern aligns with historical trends, as previous halving events have triggered upward price movements. Damian Chmiel, the senior analyst and editor at Finance Magnates, predicts that BTC will stabilize at $30,000 this year and reach $50,000 by 2025. He expressed his belief that the halving event could shift the balance of power in favor of Bitcoin, ultimately leading to new all-time highs and a six-figure value for the cryptocurrency.
While 57% of experts predict a moderate increase in BTC's price prior to the halving, 30% expect a more significant upswing, while 3% anticipate no price fluctuations. The report also explores Bitcoin's global influence and highlights its position as a market leader with a substantial impact on the broader financial landscape.
A Bearish Perspective
Desmond Marshall, the managing director at Rouge International and Rouge Ventures, offers a less optimistic outlook compared to his peers. He attributes his bearish forecast to recent regulatory measures taken by SEC chairman Gary Gensler and "rumors of a recession." Marshall predicts that Bitcoin's value will remain at $35,000 by 2025, mirroring its current price trajectory.
Marshall stated, "BTC is still the strongest cryptocurrency, so I don't think the dip will be as severe as other tokens. The halving timeline should provide some increase, but the interference of U.S. policies will prevent it from reaching astronomical heights."
The Current Market Sentiment
Interestingly, this latest report from Finder takes a more cautious approach compared to previous reports, which projected six-figure valuations for BTC. In conclusion, the report reveals that 66% of the surveyed fintech and crypto specialists believe that the present moment presents an opportunity for acquiring BTC, while 24% advocate for maintaining current holdings. Approximately 10% of the experts recommend selling BTC at this juncture.
What are your thoughts on the latest report from Finder regarding Bitcoin's future price? Share your opinions in the comments section below.
Frequently Asked Questions
What are the three types?
There are three basic types for IRAs. Each type has its advantages and limitations. Each of these types will be described below.
Traditional Individual Retirement Account (IRA)
Traditional IRAs allow you to make pretax contributions to an account that allows you to defer taxes while still earning interest. Withdrawals from this account are exempted from tax once you have retired.
Roth IRAs allow after-tax dollars to go into an account. Earnings are exempt from tax. The account allows you to withdraw funds for retirement.
Similar to a Roth IRA except that employees must make additional contributions. These extra contributions are subject to income tax but any earnings will grow tax-deferred again. If you leave the company, you can convert the entire amount to a Roth IRA.
Can I take physical possession of gold in my IRA?
Many people are curious if they can possess physical gold in an IRA. This is a fair question because there isn't any legal way to do it.
You can still own gold in an IRA if you look at the law.
Problem is, most people don’t realize how much they can save by putting gold in an IRA and not keeping it in their home.
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.
Of course, you can also lose your gold in your house and pay taxes twice. So why would anyone want to keep their gold in their home?
Some might argue that gold should be safe at home. However, to guard yourself against theft, it is worth considering storing your gold in a more secure location.
If you're planning on visiting frequently, it is best to keep your gold safe at home. If your gold is left unattended, thieves could easily steal it when you're away from home.
Better yet, store your gold inside an insured vault. Your gold will be protected against fire, floods, earthquakes, and robbery.
A vault can also be beneficial because you don't need to pay property tax. Instead, any gains that you make by selling your gold will be subject to income tax.
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.
Capital gains tax doesn't apply to gold. That means you have the right to cash your investment at whatever time you choose.
You won't have to move your gold because IRAs are federally regulated.
The bottom line is that you can own gold in your IRA. Fear of theft is all that holds you back.
What kind of IRA can you use to hold precious metals in?
Most financial institutions and employers offer an Individual Retirement Account (IRA). This is an investment vehicle that most people can use. A IRA is a way to make money and allow it to grow tax-deferred, until you withdraw it.
An IRA allows for you to save taxes while still paying taxes when you retire. This means you can save money and pay taxes later on the money that you have deposited to your retirement account.
An IRA is a tax-free way to make contributions and earn income until you withdraw the funds. You can face penalties if you withdraw funds before the deadline.
You can also make additional contributions to your IRA after age 50 without penalty. You'll owe income tax and a 10% federal penalty if you withdraw from your IRA in retirement.
A 5% IRS penalty is applicable to withdrawals made before the age of 59 1/2. Between the ages of 591/2 and 70 1/2, withdrawals are subject to a 3.4% IRS penal.
Withdrawal amounts exceeding $10,000 per year are subject to a 6.2% IRS penalty.
Are precious metal IRAs a good investment?
The answer depends on how much you are willing to risk an IRA account losing value. As long as your assets don't grow very rapidly, these are a good option. However, if you plan on saving for retirement over several decades and want to invest in assets that are likely to increase in value (gold), these may not be the best choice. They also involve fees which could eat into any gains.
Does a gold IRA earn interest?
It all depends on how much you invest in it. If you have $100,000 then yes. You can't if you have less than $100,000
The amount of money that you put into an IRA is what determines whether it earns or not interest.
If you are putting in more than $100,000 annually for retirement savings, you should open a regular brokerage account.
You will likely earn more interest there, but you'll also be exposed to riskier investments. You don't want your entire portfolio to go bankrupt if the stock markets crash.
A IRA will be more beneficial if you can only contribute $100,000 annually. At least until there is a rebound in the market.
Should you open a Precious Metal IRA
The answer depends on whether you have an investment goal and how much risk tolerance you are willing to take.
You should start an account if you intend to retire with the money.
Precious metals will appreciate over time. They offer diversification advantages.
Additionally, silver and Gold prices tends to move together. This makes them better choices when you want to invest in both assets.
If you're not planning on using your money for retirement or don't want to take any risks, you probably shouldn't invest in precious metal IRAs.
Which type is best for an IRA?
When choosing an IRA, it is important to choose one that suits your lifestyle and goals. Consider whether you are looking to maximize tax-deferred growth, minimize taxes and pay penalties later, avoid taxes, or both.
If you have little money to invest, the Roth option might make sense. If you plan to continue working beyond age 59 1/2, and pay income taxes on any account withdrawals, the Roth option may be a good choice.
The traditional IRA is better if you want to retire earlier because you will likely owe tax on your earnings. However, if your goal is to retire early, the traditional IRA might be more sensible. The Roth IRA allows you to withdraw some of your earnings or all without paying taxes.
- Silver must be 99.9% pure • (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (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)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to decide if a Gold IRA is right for you
Individual Retirement accounts (IRAs) are the most common type of retirement account. IRAs may be obtained from financial planners or banks as well as mutual funds and banks. The IRS allows individuals to contribute up to $5,000 annually without tax consequences. This amount is available to all IRAs, regardless of age. There are limits to how much money you may put into certain IRAs. For example, a Roth IRA contribution is not allowed if you are less than 59 1/2. If you're under 50, you must wait until you reach age 70 1/2 before making contributions. Individuals who work for their employer could be eligible for matching employer contributions.
There are two main types of IRAs: Traditional and Roth. A traditional IRA lets you invest in stocks, bonds, real estate, and other investments, while a Roth IRA lets you invest only in after-tax dollars. Roth IRA contributions are not subject to tax when they are made, but Roth IRA withdrawals are. Some people may choose to use both. Each type is different. There are pros and con's to each. Before you decide which type of IRA is right for you, what are the pros and cons? Below are three important things to keep your mind on:
Traditional IRA Pros
- There are many options for contributing to your company.
- Employer match possible
- Can save more than $5,000 per person
- Tax-deferred growth until withdrawal
- Limitations may apply based on income levels
- Maximum contribution limit: $5,500 per annum (or $6,500 for married filing jointly).
- Minimum investment is $1,000
- After you turn 70 1/2, you can begin receiving mandatory distributions
- An IRA can only be opened by someone who is at least five years older than you.
- Transfer assets between IRAs cannot be done
Roth IRA pros
- Contributions are tax-free
- Earnings increase without tax
- No required minimum distributions
- There are only a few investment options available: stocks, bonds and mutual funds.
- There is no maximum allowed contribution
- There are no limitations on the ability to transfer assets between IRAs
- Age 55 or older to open an IRA
If you are thinking about opening an IRA, it is important to be aware that not all companies offer exactly the same IRAs. Some companies offer the option of a Roth IRA, while others provide a choice between a Roth IRA and a traditional IRA. Others allow you to combine them. You should also note that different types of IRAs may have different requirements. Roth IRAs do not require a minimum amount of investment, while traditional IRAs are limited to a maximum investment of $1,000.
The bottom line
It is important to decide whether you want taxes now or later when you choose an IRA. A traditional IRA may be the right choice if you retire within ten years. Otherwise, a Roth IRA may be better suited for you. Either way, it's always a good idea to consult a professional about your retirement plans. A professional can help you determine the best option for your situation and keep track of what's going on in the market.
By: Jamie Redman
Title: Bitcoin Price Prediction: Experts Forecast BTC to Reach $87,000 by 2025
Sourced From: news.bitcoin.com/finders-experts-predict-bitcoin-to-reach-87k-by-2025-settling-at-30k-by-years-end/
Published Date: Thu, 26 Oct 2023 23:30:04 +0000