Jim Cramer, the renowned host of CNBC's Mad Money show, remains skeptical about the future prospects of bitcoin as the cryptocurrency market continues to experience a significant decline. Cramer, who previously described the recent price drop as the start of a significant downward spiral, emphasized that it is unlikely for bitcoin to regain its stability.
Jim Cramer Anticipates Further Decline in Bitcoin Price
Jim Cramer, the host of Mad Money and a former hedge fund manager who co-founded Thestreet.com, shared his insights on the price of bitcoin through social media platform X. Cramer expressed his belief that the price of bitcoin, which recently dipped below $39,000, would experience further declines due to a lack of sufficient investment. He humorously referred to this trend as "Number Go Down."
Unlikely that bitcoin finds its footing.
Many users on X criticized Cramer for his consistently inaccurate bitcoin price predictions. Interestingly, some users highlighted the reverse Cramer effect, suggesting that his bearish stance on bitcoin may indicate a forthcoming bullish market. Consequently, many individuals interpret Cramer's negative bitcoin price forecast as a sign that the cryptocurrency has reached its bottom.
Cramer has repeatedly shared his views on bitcoin's price following the U.S. Securities and Exchange Commission's approval of spot bitcoin exchange-traded funds (ETFs) on January 10. The price of bitcoin initially surged above $47,000 in anticipation of this approval but subsequently plummeted.
Last week, Cramer described the price drop as a "nasty beginning to the bitcoin selloff" and recently stated that bitcoin is reaching its peak, while also emphasizing that the cryptocurrency cannot be disregarded due to its technological significance and long-term sustainability.
In spite of cautioning against the decreasing price of bitcoin, Cramer clarified that he is not strongly opposed to spot bitcoin ETFs. He acknowledged bitcoin's established presence over the past 15 years and expressed his support for individuals who engage in speculative trading as long as they conduct thorough research.
What are your thoughts on Jim Cramer's bitcoin price prediction? Share your opinions in the comments below.
Frequently Asked Questions
Is gold a good investment IRA option?
Any person looking to save money is well-served by gold. It's also a great way to diversify your portfolio. But gold has more to it than meets the eyes.
It has been used throughout history as currency and it is still a very popular method of payment. It is sometimes called the “oldest currency in the world”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. Because it is rare and difficult to make, it is extremely valuable.
Gold prices fluctuate based on demand and supply. The economy that is strong tends to be more affluent, which means there are less gold miners. This results in gold prices rising.
On the flip side, when the economy slows down, people hoard cash instead of spending it. This increases the production of gold, which in turn drives down its value.
This is why gold investment makes sense for both individuals and businesses. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
In addition to earning interest on your investments, this will allow you to grow your wealth. You won't lose your money if gold prices drop.
What's the advantage of a Gold IRA?
Many benefits come with a gold IRA. It's an investment vehicle that allows you to diversify your portfolio. You can control how much money is deposited into each account as well as when it's withdrawn.
You have the option of rolling over funds from other retirement account into a gold IRA. If you are planning to retire early, this makes it easy to transition.
The best thing is that investing in gold IRAs doesn't require any special skills. They're readily available at almost all banks and brokerage firms. You do not need to worry about fees and penalties when you withdraw money.
There are, however, some drawbacks. The volatility of gold has been a hallmark of its history. It's important to understand the reasons you're considering investing in gold. Are you seeking safety or growth? Are you looking for growth or insurance? Only once you know, that will you be able to make an informed decision.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. A single ounce isn't enough to cover all of your needs. You may need several ounces, depending on what you intend to do with your precious gold.
You don't have to buy a lot of gold if your goal is to sell it. You can even manage with one ounce. You won't be capable of buying anything else with these funds.
How is gold taxed within a Roth IRA
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
Each state has its own rules regarding these accounts. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. Massachusetts allows you to wait until April 1. New York allows you to wait until age 70 1/2. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
What Is a Precious Metal IRA?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These metals are known as “precious” because they are rare and extremely valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used for precious metals. Bullion refers actually to the metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This allows you to receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay only a small percentage tax on your gains. Additionally, you have access to your funds at no cost whenever you need them.
Is it a good idea to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. It is impossible to get back money if you lose your investment. This includes any loss of investments from theft, fire, flood or other circumstances.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These coins have been around for thousands and represent a real asset that can never be lost. These items are worth more today than they were when first produced.
You should choose a reputable firm that offers competitive rates. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
If you decide to open an account, remember that you won't see any returns until after you retire. So, don't forget about the future!
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
irs.gov
finance.yahoo.com
bbb.org
How To
How to Keep Physical Gold in an IRA
The easiest way to invest is to buy shares in companies that make gold. But, this approach comes with risks. These companies may not survive the next few years. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
Another option is to purchase physical gold. You will need to either open an online or bank account or simply buy gold from a reliable seller. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's also easier to see how much gold you've got stored. A receipt will be sent to you indicating exactly how much you paid. This will allow you to see if there were any tax omissions. You also have a lower chance of theft than stocks.
However, there are some disadvantages too. You won't be able to benefit from investment funds or interest rates offered by banks. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, tax man may want to ask where you put your gold.
BullionVault.com has more information about how to buy gold in an IRA.
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By: Kevin Helms
Title: Mad Money Host Jim Cramer Questions Bitcoin's Ability to Recover as Market Downturn Persists
Sourced From: news.bitcoin.com/mad-money-host-jim-cramer-doubts-bitcoin-will-find-its-footing-as-selloff-continues/
Published Date: Wed, 24 Jan 2024 00:30:44 +0000
