Coinbase recently released its 2024 Market Outlook report, followed by an analysis from its institutional arm. The analysis focuses on the impact of two leading cryptocurrencies, bitcoin and ethereum, and provides insights into key market happenings that will shape the future direction of these digital currencies.
Coinbase Institutional Study
Coinbase Institutional, in collaboration with Glassnode, has published a comprehensive report on the metrics and trends associated with bitcoin and ethereum. The study delves deep into the critical aspects of the crypto industry, shedding light on the intricate workings of the market.
According to the report, the Bitcoin network is approaching a pivotal moment with its next halving expected in the second quarter of 2024. This event has historically had a profound impact on BTC's market dynamics and is likely to attract significant investor attention. The report suggests that the next Bitcoin halving could positively influence the token's performance. However, it also acknowledges that the limited historical data makes the outcomes somewhat speculative.
Ethereum's Cancun Upgrade
Ethereum is gearing up for the Cancun upgrade, which is anticipated in the first quarter of 2024. This upgrade, following the successful Shapella upgrade, is expected to enhance Ethereum's scalability and security. The report highlights the introduction of Proto-Danksharding, a technology aimed at making layer two (L2) transactions more cost-effective and significantly increasing transaction throughput on the Ethereum network.
Institutional Interest in Crypto Assets
The Coinbase study also sheds light on the increasing institutional interest in crypto assets. It reveals a trend towards more mature market behavior, characterized by decreasing volatility and a growing preference for sophisticated investment strategies. Institutional players are now looking beyond mere speculation and adopting more strategic, long-term positions.
Growth of Derivatives Market
The derivatives market for both BTC and ETH has seen substantial growth, with increasing volumes and open interest, according to Coinbase's Q1 2024 guide. This growth indicates a deepening market and a diversification of strategies among investors. Market participants use bitcoin derivatives for various reasons, including gaining capital-efficient access to BTC, hedging spot exposure, mitigating mining risks, and hedging other tokens that lack liquid and regulated derivatives.
Coinbase's Projected Success
Coinbase Global (Nasdaq: COIN) is expected to have a highly lucrative 2024 if it becomes the custodian for several prominent spot bitcoin exchange-traded funds (ETFs), pending regulatory approval. Additionally, the firm's stock has experienced significant growth, with COIN shares climbing an impressive 331% over the previous year. Projections suggest that 2024 could outshine the cryptocurrency downturn of 2022, barring any unforeseen extraordinary developments.
Coinbase's latest report on 2024 provides valuable insights into the upcoming bitcoin halving and ethereum's Cancun upgrade. The report highlights the potential impact of these events on the market and sheds light on the increasing institutional interest in crypto assets. With the derivatives market witnessing substantial growth, Coinbase is poised for a successful year ahead.
What are your thoughts on Coinbase's latest report? Share your opinions in the comments section below.
Frequently Asked Questions
What are the 3 types IRAs?
There are three main types of IRAs. Traditional, Roth, and SEP. Each type offers its advantages and disadvantages. Each one will be discussed below.
Traditional Individual Retirement Account (IRA).
A traditional IRA allows for you to contribute pretax money to an account, where you can defer tax on contributions made now and earn interest. Withdrawals from this account are exempted from tax once you have retired.
Roth IRAs allow for you to make after-tax deposits into an account. The earnings are tax-free. Withdrawals from the account are also tax-free when you withdraw funds for retirement purposes.
This is similar with a Roth IRA, but employees are required to make additional contributions. The additional contributions are taxed but earnings remain tax-deferred. When you leave the company the whole amount may be converted to a Roth IRA.
Can you hold precious metals 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.
Two options are available for him if diversification is something he desires. He could either buy bars of physical gold and/or sterling from a dealer or simply sell these items back at the end. He doesn't wish to sell any of his precious metal investments. He could keep the precious metals as long as he wants to.
How do you choose an IRA.
Understanding your account type is the first step to finding the best IRA. This includes whether you are looking for a traditional IRA or Roth IRA. You should also know how much money your have available to invest.
Next, you need to determine which provider is best suited for your needs. While some providers offer both accounts, others specialize in only one.
Finally, you should consider the fees associated with each option. Fees can vary greatly between providers, and may include annual maintenance charges and other fees. Some providers charge a monthly cost based on how many shares you own. Others may only charge one quarter.
How much should precious metals be included in your portfolio?
Physical gold is the best investment to protect yourself against inflation. Because you are buying into the future value of precious metals and not the current price, when you invest in them, it is a way to protect yourself from inflation. So as prices rise, so does the value of your investment.
If you hold on to your investments for at least five years, you will receive tax benefits on any gains. If you decide to sell your investments after that period, you will be subject to capital gains tax. If you want to learn more about how to buy gold coins, visit our website.
What is the best precious-metal to invest?
High returns on capital are possible with gold investments. It protects against inflation as well as other risks. As people worry about inflation, the price of gold tends increase.
It's a good idea to purchase gold futures. These contracts guarantee that you will receive certain amounts of gold at a given price.
But, not everyone is able to afford gold futures. Some prefer physical gold.
They can trade their gold with other people. They can also easily sell it whenever they like.
Some people choose to not pay taxes on gold. They purchase gold directly from governments to achieve this.
This requires that you make multiple trips to the local post office. First convert any existing gold into bars or coins.
Then, you need to get a stamp on those coins or bars. Finally, send the coins or bars 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.
If you buy gold from the US Mint directly, you won’t have to pay tax.
What precious metal would your investment preference be?
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- Silver must be 99.9% pure • (forbes.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (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)
How to open a Precious Metal IRA
Precious metals remain one of the most highly-valued investment options. They offer investors higher returns than traditional investments, such as bonds and stocks. This is why they are so popular. However, you need to be careful when investing in precious materials. These are the first things you need to know if you're looking to open a precious metal IRA.
There are two main types for precious metal accounts: paper gold and Silver certificates (GSCs), and physical precious Metals accounts. Each type has advantages and drawbacks. GSCs can be traded and access physical precious metals accounts, which offer diversification benefits. You can read more about them below.
Physical precious metals accounts are comprised of bullion and bars as well as coins. This option is great for diversification, but it has its drawbacks. Precious metals can be expensive to store, buy and sell. Due to their size, it can be difficult for them to be transported from one place to another.
On the other hand, paper gold and silver certificates are relatively inexpensive. They are also easily available and can be traded online. This makes them ideal for people who don't want to invest in precious physical metals. They aren't as diverse as physical counterparts. Additionally, they are backed by government agencies like U.S. Mint and could lose value if inflation rates rise.
If you open a precious metal IRA, choose the right account for your financial situation. Before doing so, consider the following factors:
- Your tolerance level
- Your preferred asset-allocation strategy
- What time do you have available to invest?
- Whether or not you plan on using the funds for short-term trading purposes
- What type of tax treatment do YOU prefer?
- Which precious metal would you like to place your money in?
- How liquid do your portfolio need to be
- Your retirement date
- You'll need somewhere to keep your precious metals
- Your income level
- Your current savings rates
- Your future goals
- Your net worth
- Special circumstances that might affect your decision
- Your overall financial situation
- Your preference between physical or paper assets
- Your willingness to take on risks
- Your ability manage losses
- Your budget constraints
- Your desire to become financially independent
- Your investment experience
- Your familiarity with precious and rare metals
- Your knowledge about precious metals
- Your confidence in the economy
- Your personal preferences
Once you have decided which type of precious-metal IRA is best for you, it's time to open an account at a reputable dealer. You can find these companies through referrals, word of mouth, or online research.
After you have opened your precious metal IRA account, you will need to decide how much money to put in it. You should note that every precious metal IRA account has a different minimum deposit amount. Some accounts only require $100, while others may allow you up to $50,000.
As you can see, your precious metal IRA IRA investment amount is completely up to the individual. You should choose a higher initial deposit if you want to build wealth over time. You might prefer a lower initial deposit if you intend to invest smaller amounts every month.
There are many types of investments that can be purchased, as well as precious metals you can use in your IRA. The most common include:
- Bullion bars, rounds and coins in gold – Gold
- Silver – Rounds, and coins
- Platinum – Coins
- Palladium – Round and bar forms
- Mercury – Round or bar forms
By: Jamie Redman
Title: Coinbase Report Analyzes 2024 Bitcoin Halving and Ethereum’s Cancun Upgrade Impact
Sourced From: news.bitcoin.com/coinbase-report-analyzes-2024-bitcoin-halving-and-ethereums-cancun-upgrade-impact/
Published Date: Thu, 11 Jan 2024 06:00:09 +0000