Recently, Bitcoin (BTC) experienced a downward trend for four consecutive days, causing traders to pay close attention to the situation. Simultaneously, a confirmed fraudulent activity by Caroline Ellison on behalf of SBF has stirred up the market sentiment.
Bitcoin's Market Performance
Bitcoin, the world's largest cryptocurrency, has witnessed a significant dip in its value. In a surprising turn of events, BTC saw a decline from a high of $27,605.82 to an intraday low of $27,017.64. This transition marked the weakest point for BTC since the onset of October, stirring unease among investors.
Caroline Ellison's statement, where she admitted to sending balance sheets under Sam's directive to make Alameda's balances appear less risky, adds to the existing market volatility. This move has been interpreted by many as an attempt to mislead investors, creating an atmosphere of mistrust.
The impact of these events was so significant that Bitcoin fell below the $27,100 mark before market bulls stepped in. The Relative Strength Index (RSI) also slipped below its support point of 53.00, currently hovering at 51.67. However, Bitcoin managed to recover partially from this low and is currently trading at $27,292.17.
Ethereum's Market Performance
On the Ethereum (ETH) front, the second-largest cryptocurrency returned above its crucial support point of $1,565 following a price breakout earlier in the day. ETH/USD recorded a low of $1,551.68 before bouncing back to its current trading price of $1,575.39.
Despite this recovery, Ethereum is still trading lower than Tuesday's peak of $1,587.56, keeping it near a one-month low. The aftermath of the recent sell-off can be seen in the 10-day (red) moving average crossing over the 25-day (blue) average. If this crossover trend continues in a downward direction, Ethereum might soon dip below the $1,500 mark.
The market performance of both Bitcoin and Ethereum has been a subject of concern for investors. The potential for further downward pressure on Ethereum this week has sparked debates among market analysts. The coming days will shed more light on how these market dynamics will play out.
Frequently Asked Questions
How much of your portfolio should be in precious metals?
Protect yourself against inflation by investing in physical gold. 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. The value of your investment increases with rising prices.
Any gains you make from investments that you hold onto for at least five year will be tax-free. After that time, capital gains taxes will be due. Learn more about how you can buy gold coins on our website.
Can I store my Gold IRA at Home?
An online brokerage account will allow you to invest in the most secure way possible. You can access all of the same investment options that you would have if you worked with a traditional broker but don't need to be licensed or qualified. Plus, there are no fees for investing.
Many online brokers also offer tools that can help you manage your portfolio. To see the performance and trends of your investments, you can download charts from these brokers.
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 type of account is superior to other types of IRAs in that you don't pay any taxes on the interest earned 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 put your money in almost any item that meets the IRS guidelines.
Most people associate “precious” metal with gold or silver, but there are many different types of precious metals.
There are many examples: palladium; platinum; rhodium; osmium; iridium; ruthenium.
You can invest in precious and base metals in many different ways. These include purchasing bullion coins and bars, as well as 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 generic term that refers only to physical ounces in gold or silver.
You get actual bullion bars and coins when you purchase bullion coins.
You might not notice any changes in your pocket when you buy bullion coins or bars from a store but you will see some benefits over the long-term.
You'll be able to see a piece tangible of history. Each coin or bar has its own story.
When you look at face value of the coin, you'll often find that it's worth far less than its nominal 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.
Bullion has seen a dramatic rise in value since its introduction. Many investors would rather buy bullion coins or bullion bars than futures contracts.
Another option for people who are interested in buying precious metals is to invest in shares of mining corporations. When you invest in mining companies, you are investing in the company's ability to produce gold and silver.
In return, you will receive dividends based on the company's profits. These dividends will be used to pay shareholders.
Additionally, you will be able to take advantage of the company's potential growth. The share prices of the company should rise as more people buy the product.
This is why it's important that you diversify your portfolio. Stocks can fluctuate in prices so it's important to diversify. This means you can spread your risk to multiple companies.
It's important to remember, however, that mining companies can still be subject to financial losses, just as any other stock market investment.
If gold prices drop dramatically, your ownership share could be worthless.
The Bottom Line
Precious metals, such as silver and gold, can be a refuge during economic uncertainty.
But, silver and gold can be subject to price swings. You might be interested in long-term investments in precious metals. Consider opening a precious metals IRA with a reputable company.
This allows you to benefit from tax advantages and physical assets.
What are the pros and cons of a gold IRA?
If you want to diversify your holdings but aren't able to access traditional banks services, a gold IRA is a great option. It allows you to invest in precious metals such as gold, silver, and platinum without paying taxes on any gains until they're withdrawn from the account.
There is a downside to this: if you withdraw your earnings early, you'll be subject to normal income tax. These funds are not held in the country so creditors cannot seize them if you default on your loan.
A gold IRA could be the best option for you if your goal is to have gold that you can own without worrying about taxes.
What precious metals can be allowed in an IRA?
Gold is the most widely used precious metal for IRA account accounts. Investments in gold bullion coins or bars can be made as well.
Precious Metals are safe investments since they don’t lose value over the long-term. They are also an excellent way to diversify your investment portfolio.
Precious Metals include palladium, silver, and platinum. These metals share similar properties. Each metal has its own use.
Platinum is used to make jewelry, for example. The catalysts are made from palladium. To produce coins, silver can be used.
Think about how much you can afford to purchase your gold, before you make a decision on the precious metal. You might be better off buying gold that costs less per ounce.
You also need to think about whether your investment is private. Palladium is the best option if you want to keep your investment private.
Palladium is worth more than gold. But it's also rarer. It's likely that you will have to pay more.
Storage fees are another important consideration when choosing between silver and gold. Gold is stored by weight. The price for larger amounts will go up.
Silver is stored by volume. So you'll pay less for storing smaller amounts of silver.
All IRS rules concerning gold and silver should be followed if your precious metals are stored in an IRA. This includes keeping track and reporting transactions to the IRS.
- 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)
- 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)
- 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)
- 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)
How to Decide if a Gold IRA Is Right for You
The most popular type of retirement account is the Individual Retirement Account (IRA). IRAs can also be purchased through banks, mutual funds, financial planners, and other institutions. Individuals can contribute as much as $5,000 per year without any tax consequences. This amount can be deposited into any IRA, regardless your age. There are limitations on the amount of money that you can contribute to certain IRAs. A Roth IRA is only available to those who are at least 59 1/2. For those who are younger than 50, contributions can only be made after you turn 70 1/2. Some employees may be eligible to match contributions from their employer.
There are two types of IRAs available: Roth and traditional. 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 don't get taxed as soon as they are made. However, withdrawals from a Roth IRA will be taxed again. Some people may choose to use both. There are pros and cons to each type of IRA. There are pros and cons to each type of IRA. These are the three main things you need to remember:
Traditional IRA Pros
- There are many options for contributing to your company.
- Employer match possible
- More than $5,000 in savings per person
- Tax-deferred growth up to withdrawal
- Limitations may apply based on income levels
- Maximum contribution limit: $5,500 per annum (or $6,500 for married filing jointly).
- Minimum investment: $1,000
- After age 70 1/2 you are required to begin mandatory distributions
- To open an IRA, you must be at least 5 years old
- You cannot transfer assets between IRAs
Roth IRA pros
- Contributions are free of taxes
- Earnings increase without tax
- No minimum distribution required
- The only options for investing are stocks, bonds, or mutual funds
- There is no maximum allowed contribution
- No limitations on transferring assets between IRAs
- You must be at least 55 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. For example, you might be able to choose between a Roth IRA (or a traditional one) from some companies. Others allow you to combine them. Noting that different types IRAs have different requirements, it's worth noting. 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
The most important factor when choosing an IRA is whether you plan to pay taxes immediately or later. If you are retiring within ten year, a traditional IRA could be the right option. A Roth IRA might be better suited to you. However, it's always a good idea for you to talk with a professional regarding your retirement plans. Someone who understands the market will be able to recommend the best options.
By: Eliman Dambell
Title: Insights into Bitcoin and Ethereum's Market Performance: BTC Reaches 10-day Nadir, Fraudulent Activity Affirmed by Caroline Ellison
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-hits-10-day-low-caroline-ellison-confirms-fraud-on-behalf-of-sbf/
Published Date: Wed, 11 Oct 2023 12:30:41 +0000