Bitcoin's Potential Future Trajectory According to Gareth Soloway
In a recent interview with Gareth Soloway, the chief market strategist at verifiedinvesting.com, he shared his insights on bitcoin's latest trends and its potential future trajectory. Soloway discussed his approach to analyzing various data sets for forecasting future trends and drawing conclusions. He highlighted the significance of certain events in the bitcoin bull markets of 2017 and 2021, such as the introduction of regulated bitcoin futures in 2017 and the Coinbase initial public offering (IPO) in 2021.
Bitcoin's Price Level and Recent Downturn
Soloway finds the current bitcoin price level and its recent downturn following specific developments to be logical. He mentioned the outflows from GBTC and the impact it had on the market. According to Soloway, a peak in the S&P market or a de-risking occurrence in the broader markets could potentially lead to a bearish view on BTC, causing it to head back down. He predicts that if there is a 50% drop in the stock market, bitcoin could retest the $15,000 level.
Deutsche Bank Survey and Other Predictions
Deutsche Bank recently released a survey involving over 2,000 respondents, where a third of the participants anticipated BTC's value falling below $20K. Additionally, 15% of the participants predicted BTC prices ranging from $40K to $75K by the end of 2024. Arthur Hayes, the ex-boss of Bitmex, also predicts BTC could hit lows of $30K to $35K. Soloway is closely monitoring these developments and believes the upcoming three-plus weeks are critical to observe.
Soloway's Long-Term Optimism for Bitcoin
Despite these bleak projections, Soloway remains optimistic about bitcoin in the long term. He expressed his intention to increase his BTC holdings if prices continue to decline. In a previous conversation with Michelle Makori in late October, Soloway accurately predicted the approval of spot bitcoin ETFs in early 2024. It remains to be seen if his predictions regarding an equities sell-off and BTC potentially reaching the $15K mark this year will materialize. As of Sunday, Jan. 28, 2024, BTC is maintaining its position above $42K, currently undergoing a phase of consolidation.
What Do You Think?
What are your thoughts on Gareth Soloway's bitcoin prediction? Share your opinions in the comments section below.
Frequently Asked Questions
What is a Precious Metal IRA and How Can You Benefit From It?
Precious Metals are a great way to invest in retirement funds. They have been around since biblical times and continue to hold value today. The best way to protect yourself from inflation is to invest in precious metallics such as platinum, silver and gold.
Certain countries even allow their citizens to save money in foreign currencies. You can buy gold bars in Canada and keep them at home. You can also sell these gold bars for Canadian dollar when you visit family.
This is an easy way to invest precious metals. It's especially useful for anyone who lives outside North America.
How much of your portfolio should be in precious metals?
Physical gold is the best investment to protect yourself against inflation. This is because when you invest in precious metals, you buy into the future value of these assets, not just the current price. Your investment will increase in value as the prices rise.
Any gains you make from investments that you hold onto for at least five year will be tax-free. You will also have to pay capital gains taxes if your investments are sold after the five-year period. Our website has more information about how to purchase gold coins.
How to open a Precious Metal IRA
An IRA to hold precious metals can be opened by opening a Roth Individual Retirement Account (IRA) that is self-directed.
This account is better compared to other types because you don’t need to pay any taxes until you withdraw the investments.
It is attractive for people who want to save money, but need a tax break.
There are many other options than investing in gold and silver. You can invest anywhere you wish, as long as it is within the IRS guidelines.
While most people associate precious metals with silver and gold, there are many types of precious metals.
Some examples include palladium, platinum, rhodium, osmium, iridium, and ruthenium.
There are many ways to invest in precious materials. You can buy bullion coins or bars, or shares in mining businesses.
Bullion Coins or Bars
The easiest way to invest in precious materials is to buy bullion coins or bars. Bullion refers to physical ounces (or grams) of gold and/or 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'll get a piece of history in a tangible form. Each coin or bar has its own story.
It is often worth less than its nominal price if you examine the face value. In 1986, the American Eagle Silver Coin was $1.00 per ounce. However, today, an American Eagle Silver Coin is more than $40.00 per Ounce.
Many investors prefer bullion coins and bullion bar to futures contracts because of the dramatic increase in bullion's value.
Mining Companies
A great way to get precious metals is by investing in shares in mining companies. When you invest in mining businesses, you are investing in their ability to produce silver and gold.
You will be paid dividends that are based on the company’s profits. These dividends are then used to pay shareholders.
Furthermore, the company has the potential to grow. The demand for the product will also cause an increase in share prices.
Because these stocks fluctuate in price, it's important to diversify your portfolio. This involves spreading your risk over multiple companies.
It is important to keep in mind that mining companies can lose their financial investments just as stock markets investors.
If gold prices drop dramatically, your ownership share could be worthless.
The Bottom Line
Precious Metals such as gold or silver offer a safe haven in times of economic uncertainty.
Silver and gold, however, can experience wild swings in their prices. A precious metals IRA account is a good option for long-term investment.
By doing this, you can reap the tax benefits and still have physical assets.
Can I take physical possession of gold in my IRA?
Many people want to know if gold can be physically owned in an IRA. This is a legitimate question since there is no legal way.
However, if you examine the law carefully, you will see that there are no restrictions on gold ownership in an IRA.
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 very easy to dispose of gold coins, but much harder to make an IRA. If you decide to keep your precious metal in your own home you will have to pay two taxes. 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. Why would you want to keep your gold in your house?
You might argue that it is important to know that your gold remains safe in your house. 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. If you leave your precious gold unattended thieves will easily steal it.
It is better to keep your gold in an insured vault. This will ensure that your gold is protected against fire, flood, earthquake 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 allows you to keep your gold free from income taxes, even though it earns interest.
Capital gains tax is not a requirement for gold investments. You can cash out your entire investment anytime you wish.
Because IRAs have federal regulation, it won't be difficult to transfer your gold to another bank if there is a move.
Bottom line: An IRA can allow you to own gold. Fear of theft is all that holds you back.
Can I have gold in my IRA.
Yes! You can add gold into your retirement plan. Gold is an excellent investment because it doesn't lose value over time. It also protects against inflation. And you don't have to pay taxes on it either.
It's important to understand the differences between gold and other investments before investing in it. You cannot buy shares of companies that are gold, like stocks and bonds. These shares can also be not sold.
You must instead convert your gold into cash. This means you will need to get rid. You cannot just keep it.
This makes gold an investment that is different from other investments. With other investments, you can always sell them later. However, gold is different.
You can't even use your gold as collateral to get loans. If you get a mortgage, for example, you might have to give up some of the gold you own in order to pay off the loan.
What does this translate to? You can't hold onto your gold forever. You'll eventually need to convert it into cash.
You don't need to worry. To open an IRA, all you need is to create one. Then you can invest your money in gold.
Statistics
- 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)
- 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)
- Silver must be 99.9% pure • (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal so that 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)
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? This article can help you do exactly that. Here are the steps to help you make the change.
“Rolling over” is the act of transferring money from one type (traditional) to another type (gold). Rolling over an IRA account can provide tax advantages. In addition, some people prefer investing in physical assets like precious metals.
There are two types IRAs: Traditional IRAs or Roth IRAs. The main difference between the two types of IRAs is that Roth IRAs do not allow investors to deduct taxes from their earnings. That means that if you invest $5,000 in a Traditional IRA today, then after five years, you'll only be able to take out $4,850. If you invested the same amount in a Roth IRA, however, you'd be able to keep every penny.
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.
You must first decide whether you want to transfer funds from one account to another or roll over your current balance to a new account. Any earnings over $10,000 will be subject to income tax at the regular rate. But if you choose to roll over your IRA, you won't be taxed on those earnings until you reach age 59 1/2.
Once you have decided to open a new bank account, You'll likely be required to provide proof of identities, such as a Social Security card, passport, and birth certificate. You will then need to fill out paperwork proving that you have an IRA. Once you have filled out the forms, your bank will receive them. After verifying your identity, they will give you instructions about where to send wire transfers or checks.
Now comes the fun part. The fun part is when you deposit cash into the account, and then wait for the IRS approval. You will be notified by mail that your request has been approved.
That's it! You can now relax and watch your money grow. If you decide to convert your IRA you can close it and transfer the remaining balance into a different IRA.
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By: Jamie Redman
Title: Gareth Soloway Predicts Bitcoin Could Dip to $15K in a Stock Market Sell-Off
Sourced From: news.bitcoin.com/market-strategist-gareth-soloway-eyes-15k-bitcoin-in-event-of-stock-market-slide/
Published Date: Sun, 28 Jan 2024 23:00:58 +0000
