Galaxy Digital CEO's Bullish Bitcoin Prediction
In an interview on Bloomberg TV, Galaxy Digital CEO Michael Novogratz shared his belief that the price of bitcoin will experience a significant surge once the U.S. Securities and Exchange Commission (SEC) approves spot bitcoin exchange-traded funds (ETFs). He emphasized that the approval would result in a psychological shift among investors, as the government would be officially endorsing bitcoin as an investment option.
Novogratz highlighted several factors that contribute to his bullish prediction. One of them is the imminent approval of the first U.S. spot bitcoin ETF by the SEC. He stated that there is already a high level of anticipation in the market, and this anticipation has already been factored into the current price of bitcoin. However, when the official announcement of a spot bitcoin ETF is made, with trading expected to commence two months later, major players such as Blackrock, Ark, Fidelity, and Novogratz's own firm will actively promote bitcoin adoption to potential investors. This increased marketing effort, coupled with the potential rate cuts by the Federal Reserve, will cause a substantial increase in the price of bitcoin.
Novogratz expressed confidence that bitcoin could reach or even surpass its previous all-time highs within a year. He emphasized that prices are determined by the marginal buyers and sellers, and there is a limited supply of bitcoin available for sale. Additionally, the upcoming halving event, where the daily supply of new bitcoins will be cut in half, will further reduce the inflation rate, making bitcoin a more attractive investment. Furthermore, the uncertainties surrounding the upcoming election in the U.S., Europe, and Japan will likely drive investors towards bitcoin, as these regions struggle to maintain fiscal responsibility.
Once spot bitcoin ETFs are introduced to the market, Novogratz predicted that billions of dollars, if not more, would flow into the ETF space. He believes that this influx of new money, combined with the endorsement of the government and institutional investors, will result in a significant shift in investor psychology towards bitcoin.
SEC Chairman Gary Gensler revealed that the securities regulator is currently reviewing between eight and ten spot bitcoin ETF applications. It is widely anticipated that the SEC will approve multiple spot bitcoin ETFs simultaneously in the early months of next year.
What are your thoughts on Galaxy Digital CEO Mike Novogratz's prediction? Share your opinions in the comments section below.
Frequently Asked Questions
How does a gold IRA generate interest?
It all depends on how much you invest in it. If you have $100,000 then yes. If your net worth is less than 100,000, no.
The amount you invest in an IRA affects its ability to earn interest.
If your annual retirement savings contributions exceed $100,000, you might want to open a brokerage account.
Although you'll likely earn higher interest, there are greater risks. If the stock market crashes, you don't want all your money to be lost.
However, if you only put in $100,000 per annum, you'll probably be better off with an IRA. At least, until the market begins to grow again.
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 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.
It is attractive for people who want to save money, but need a tax break.
You are not restricted to investing only in gold or silver. If it meets the IRS guidelines, you can invest in any asset that interests you.
Although most people think of gold and silver when they hear the term “precious metal,” there are many kinds of precious metals.
Some examples include 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 and Bars
The easiest way to invest in precious materials is to buy bullion coins or bars. Bullion is a general term that describes physical ounces, or physical gold and silver.
When you buy bullion coins and bars, you receive actual pieces of the metal itself.
Although you may not be able to see any change immediately after purchasing bullion bars and coins at a shop, you will soon notice some positive effects.
For example, you will get a tangible piece of history. Each coin and bar has its own unique story behind it.
It is often worth less than its nominal price if you examine the face value. The American Eagle Silver Coin cost $1.00 an ounce in 1986 when it was first introduced. The price of an American Eagle is now closer to $40.00 a 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.
Mining Companies
A great way to get precious metals is by investing in shares in mining companies. You invest in the company's ability produce gold and silver when you buy shares of mining companies.
You will get dividends based off the company's profits in return. These dividends can then be used to pay out shareholders.
Additionally, you will be able to take advantage of the company's potential growth. The company's share prices should also increase as demand increases for 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 spreading your risk across 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 significantly, your share of ownership could be worthless.
The bottom line
Precious metals, such as silver and gold, can be a refuge during economic 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.
By doing this, you can reap the tax benefits and still have physical assets.
What are the pros and disadvantages of a gold IRA
The gold IRA is a great way to diversify your portfolio, but you don't have access the traditional banking services. You can invest in precious metals like gold, silver, or platinum, without having to pay taxes until the gains are withdrawn.
However, early withdrawals of funds will incur ordinary income tax. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
A gold IRA might be the right choice for you if you enjoy owning gold and don't worry about taxes.
What Is a Precious Metal IRA?
Precious metals make a great investment in retirement accounts. They are a timeless investment that has held its value since the beginning of time. A great way to diversify and protect your portfolio is to invest in precious metals such silver, gold, and platinum.
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 particularly helpful for people who don't reside in North America.
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)
- 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)
- You can only purchase gold bars of at least 99.5% purity. (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
wsj.com
regalassets.com
investopedia.com
takemetothesite.com
How To
How to buy silver with your IRA
How to start buying silver with your IRA – The best way to invest in gold and silver is through direct ownership of physical bullion. Silver coins and bars are the most popular form of investment because they offer diversification, liquidity, and convenience.However, many prefer owning physical bullion over paper certificates or electronic currency.
There are many options available if you wish to purchase precious metals such as gold and silver. You can purchase them directly from their producers, such as mining companies and refiners. If you don't want the hassle of dealing with a producer directly, you can purchase them from a dealer that buys and trades bullion products.
This article will explain how to invest in silver with an IRA.
- Investing Directly in Gold & Silver – This is the first way to get precious metals directly from their source. This means that you can get the bullion straight from the source, and it will be delivered directly to your front door. Some investors decide to keep their bullion at their home while others prefer to store it in an insured storage facility. You should ensure that your precious metal is properly stored when you are preserving it. Many storage facilities offer insurance against fire, theft and damage. But, even with insurance, you can lose your investments because of natural disasters and human error. It is always a good idea to store precious metals in safe deposit boxes at banks or credit unions.
- Online Precious Metals Buying – If you prefer not to transport heavy boxes of precious metal around, then buying bullion online is an option. Bullion dealers can sell bullion in various forms, including bars or coins. Coins are available in a variety of sizes, shapes, designs, and colors. Generally speaking, coins are easier to carry around and less expensive than bars. There are many different sizes and weights available for bars. Some bars are heavy and weigh hundreds of pounds while others only weigh a few grams. A good rule of thumb when selecting which type of bar you should get is to look at what you plan to use it for. If you plan on giving it as gifts, you might choose something smaller. However, if it's something you intend to use as a gift, it might be a smaller model. If you wish to add it to a collection and proudly display it, it may be worth spending fewer dollars.
- Buying Precious Metal From Dealers – A third option is to buy bullion from a dealer. Most dealers have a specific area of expertise, usually in silver or gold. Some dealers specialize in particular types of bullion like rounds or minted currency. Others are specialists in specific regions. And yet others specialize in bulk purchases. You'll find them all to be competitive in price and offer convenient payment methods.
- Investment in Retirement Accounts: Buying precious metallics through retirement accounts – Although not technically an investment, this is another way to get exposure to precious metals. For Section 219 to receive tax benefits, you must have a qualified retirement fund that invests in precious metallics. These accounts include IRAs. Since these accounts are set up specifically to help you save for retirement, they often offer higher returns than many other investment vehicles. These accounts also allow you to diversify across multiple metals. The drawback? Investments in retirement accounts aren't available to everyone. Only employees who have been sponsored by an employer can invest in retirement accounts.
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By: Kevin Helms
Title: Mike Novogratz Expects Bitcoin Price to Soar with SEC Approval of Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/novogratz-expects-bitcoin-price-to-be-significantly-higher-after-sec-approves-spot-bitcoin-etfs/
Published Date: Sat, 02 Dec 2023 03:00:31 +0000
