Bitcoin's Impressive Rally
Bitcoin surpassed the $47,000 mark on Monday, driven by the growing anticipation surrounding the potential launch of a U.S. spot bitcoin exchange-traded fund (ETF). The leading cryptocurrency started the day at $43,247 per unit and reached a peak of $47,281 by 2:10 p.m. Eastern Time (ET).
ETF Approval Speculation
During Monday afternoon, there was a significant surge in the market capitalization of bitcoin, particularly around 2 p.m. ET. Many analysts attribute this upswing to the potential approval of several spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). Notably, bitcoin's previous encounter with this price range was in December 2021 after its decline from the all-time high of $69,000.
Market Value and Trading Volume
The market valuation of bitcoin soared to an impressive $917 billion, surpassing Meta and securing its position as the ninth-largest asset by market valuation. The trading volume for BTC also intensified, contributing $37.17 billion to the day's total of $144 billion in trades. As of 3:10 p.m. ET, bitcoin's market value stands at $46,922, which is approximately 32% below its all-time high of $69,000 achieved on November 10, 2021.
Impact on Short Trading Positions
This surge in price led to the closure of numerous short trading positions. According to Coinglass's four-hour data, around $73.62 million in BTC shorts were liquidated, with an additional $13.75 million occurring after the price surpassed $47,000. Furthermore, the rise in bitcoin's price has had a positive effect on other cryptocurrencies, elevating the overall crypto market economy to a value of $1.80 trillion. Bitcoin dominates this figure with a 50.8% market share, while ethereum (ETH) holds a 15.6% stake in the combined market.
What are your thoughts on bitcoin's surge in value on Monday afternoon? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
Are precious metals allowed in an IRA?
The answer to that question will depend on whether the IRA owner plans to diversify his holdings to gold and/or keep them safekeeping.
There are two options for him if he wants to diversify. He could buy physical bars of gold and/or silver from a dealer or sell these items back to the dealer at the end of the year. But, what if he doesn't want to sell his precious metal investments? He could keep the precious metals as long as he wants to.
Can I have physical possession of gold within my IRA?
Many people wonder if they are allowed to possess physical gold within an IRA account. This is a fair question because there isn't any legal way to do it.
If you take a closer look at the law, there is nothing that can stop you from having gold in your IRA.
Most people don’t realize just how much they could save by putting your gold in an IRA, rather than keeping it at home.
It's very easy to dispose of gold coins, but much harder to make an IRA. You'll have to pay twice taxes if you keep your gold in your home. One for the IRS, and one for your state.
Of course, you can also lose your gold in your house and pay taxes twice. Why would you want to keep your gold in your house?
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 are planning to visit frequently, your gold should not be left at home. Thieves can easily steal your gold if you don't keep it safe.
It is better to keep your gold in an insured vault. You can rest assured that your gold is safe from theft, fire, earthquake, flood, and other hazards.
One advantage of storing your gold safely in a vault is the fact that you don't have to worry too much about property tax. Instead, any gains that you make by selling your gold will be subject to income tax.
If you'd rather avoid paying taxes on your gold, you may want to consider putting it in an IRA. With an IRA, you won't have to pay income tax even though you earn interest on your gold.
Since you aren't required to pay capital gains tax on your gold, you'll have access to the full value of your investment whenever you want to cash it out.
Because IRAs have federal regulation, it won't be difficult to transfer your gold to another bank if there is a move.
The bottom line is that you can own gold in your IRA. Only thing stopping you from owning gold in an IRA is your fear of getting it stolen.
How to Open a Precious Metal IRA
A self-directed Roth Individual Retirement Account is the best way to open a IRA for precious metals.
This type of account is better than other types of IRAs because you don't have to pay any taxes on the interest you earn from your investments until you withdraw them.
People who are looking to save money and still need a tax break will find it attractive.
You are not restricted to investing only in gold or silver. You can invest in anything you want if it fits the IRS guidelines.
Many people think only of silver and gold when they hear the word “precious metallic” but there are other types.
You can find examples in palladium (platinum), rhodium (osmium), iridium and ruthenium.
There are several ways you can invest in precious metals. There are two main options: buying bullion bars and coins, and purchasing shares in mining companies.
Bullion Coins & Bars
One of the best ways to invest in precious metals is by buying bullion bars and coins. Bullion is a general term that describes physical ounces, or physical gold and silver.
Bullion bars and bullion coins are actual pieces of the metal.
While you might not feel any change when you buy bullion coin bars or coins from a retailer, you will experience some benefits over time.
For example, you will get a tangible piece of history. Each coin and bar has its own unique story behind it.
The face value of a coin will often be lower than its nominal worth. When it was first introduced in 1986, the American Eagle Silver Coin cost only $1.00 per troy ounce. Today, however the American Eagle's silver coin is worth closer to $40.00 an ounce.
Bullion has had a tremendous increase in its value since its introduction. This is why many investors choose bullion bars and bullion coin over futures.
Mining Companies
Investing in shares of mining companies is another great option for those looking to buy precious metals. When you invest in mining businesses, you are investing in their ability to produce silver and gold.
In return, you will receive dividends based on the company's profits. These dividends will then be paid out to shareholders.
The company's growth potential will also be of benefit to you. The demand for the product will also cause an increase in share prices.
This is why it's important that you diversify your portfolio. Stocks can fluctuate in prices so it's important to diversify. This means spreading your risk across multiple companies.
However, it's also important to remember that mining companies aren't immune to financial loss, just like any stock market investment.
If gold prices plummet significantly, ownership of your shares could be worthless.
The Bottom Line
Precious metals such silver and gold provide an economic refuge from uncertainty.
Both silver and gold are subject to extreme price swings. If you are interested in long-term investing in precious metals, open a precious Metals IRA account at a reputable firm.
You can enjoy tax benefits while still owning tangible assets.
Are precious-metal IRAs a good option?
How willing you are to risk your IRA account losing value will decide the answer. You can use them if your cash balance is $10,000, as long you don't expect it to grow quickly. 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. You may also have to pay fees, which can reduce your gains.
What precious metals may I allow in my IRA?
Gold is the most popular precious metal for IRA accounts. Gold bullion coins and bars are also available as investments.
Precious metals, which don't lose any value over time, are considered safe investments. They are also a great way of diversifying your investment portfolio.
Precious metals include palladium and platinum. These metals share similar properties. Each has its own purpose.
For example, platinum is used in making jewelry. You can create catalysts with palladium. For producing coins, silver is used.
It is important to consider how much money you are willing to spend on your precious metals when making a decision about which precious material to choose. You might be better off buying gold that costs less per ounce.
You should also think about whether you want to keep your investment private. If you are unsure, palladium is the right choice.
Palladium is more valuable than gold. But it's also rarer. It is likely you will need to pay more.
Their storage fees are another important factor to consider when choosing between sterling and gold. Gold is stored by weight. You will pay more if you store larger amounts.
Silver is measured in volume. You'll be charged less for smaller amounts.
Follow all IRS rules regarding silver and gold if you are storing precious metals within an IRA. This includes keeping track and reporting transactions to the IRS.
What precious metal should I invest in?
An investment in gold can yield high returns on its capital. It protects against inflation as well as other risks. As people worry about inflation, the price of gold tends increase.
Gold futures are a great idea. These contracts ensure that you receive a set amount of gold at a fixed rate.
However, gold futures aren't suitable for everyone. Some prefer physical gold.
They can easily trade their gold with others. They can also easily sell it whenever they like.
Some people want to avoid paying tax on their gold. To do that, they buy gold directly from the government.
This requires that you make multiple trips to the local post office. You must first convert any existing gold into coins or bars.
Then, you need to get a stamp on those coins or bars. Finally, send them off to the US Mint. They will then melt down the bars and coins to create new coins.
These new coins, bars, and bars have the original stamps stamped onto them. That means that they're legal tender.
You won't need to pay taxes if gold is purchased directly from the US Mint.
Decide what precious metal do you want to invest?
Statistics
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.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)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
External Links
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
kitco.com
investopedia.com
regalassets.com
How To
How to turn your IRA into a IRA with gold content
So you want to move your retirement savings from a traditional IRA into a gold IRA? Well, this article will help you do just that. This is how you can make the switch.
Rolling over is the process of transferring money from one type of IRA to another. Rolling over an IRA account can provide tax advantages. Some prefer to invest directly in physical assets like precious and rare metals.
There are two types IRAs – Traditional IRAs and Roth IRAs. The difference between the two types is that Traditional IRAs let investors deduct taxes from earnings. Roth IRAs don’t allow this. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. You would still be able to keep all your money if you had the same amount invested in a Roth IRA.
This is what you need to know if you want to convert an IRA from a conventional to a IRA to a IRA with gold.
First, decide whether to transfer funds from an old account to your new account or to rollover your current balance. When transferring money, you'll pay income tax at your regular rate on any earnings that exceed $10,000. But if you choose to roll over your IRA, you won't be taxed on those earnings until you reach age 59 1/2.
After making your decision, you can open a new financial account. You will likely need to show proof of identity, such as a passport, Social Security card, or birth certificate. Then, you'll fill out paperwork showing that you own the IRA. Once you've completed the forms, you'll submit them to your bank. After verifying your identity, they will give you instructions about where to send wire transfers or checks.
Now comes fun. After you have received approval from the IRS, you will deposit cash to your new account. Once you have received approval, you will receive a letter that allows you to withdraw funds.
That's it! All you need to do now is watch your money grow. Remember that if you are unsure whether you want to convert your IRA, it is possible to close it and roll the balance over into a new IRA.
—————————————————————————————————————————————————————————————-
By: Jamie Redman
Title: Bitcoin Surges Past $47K on Potential ETF Approval
Sourced From: news.bitcoin.com/bitcoin-soars-past-47k-outstrips-meta-in-market-cap-amid-etf-speculation-and-intense-trading/
Published Date: Mon, 08 Jan 2024 20:26:13 +0000
