Altcoin Dynamics Altered: Ethereum and Solana Lead Post-ETF Era
In the ever-changing world of cryptocurrency markets, recent trends have revealed interesting divergences in the altcoin market, specifically between ethereum and solana in comparison to bitcoin. Glassnode, an onchain analytics firm, has released a comprehensive report that delves into this phenomenon.
The latest edition of Glassnode's "The Week Onchain" features the research of Alice Kohn, published on Jan. 23, 2024. Kohn's research highlights ethereum's (ETH) exceptional performance, characterized by a significant increase in derivatives market activity. Additionally, the report focuses on solana's (SOL) impressive journey, particularly after the approval of a bitcoin exchange-traded fund (ETF). Ether has recently surpassed bitcoin, showcasing its strongest performance since late 2022. Kohn's report also points out a surge of over 20% in ethereum's value relative to bitcoin, coinciding with a renewed interest in ethereum's derivatives market.
This resurgence, which indicates a potential shift in capital flows, has sparked speculations about an imminent spot-based ethereum ETF. However, despite these gains, ethereum still lags behind the broader altcoin market in terms of momentum, underperforming by 17%. On the other hand, solana has taken a different path, as detailed in Glassnode's report. Despite setbacks related to its association with FTX, SOL has exhibited exceptional price performance last year.
During this period, SOL has significantly outperformed ETH, with the SOL/BTC ratio increasing by 290% since October 2023. Interestingly, unlike ETH, solana's price did not experience a significant revaluation following the approval of BTC ETFs. This suggests a divergent market response to broader sector movements, according to Glassnode's Kohn. The overall altcoin market has seen a nearly 69% increase in market cap since the filing of the Blackrock Bitcoin ETF.
On Jan. 14, 2024, Bitcoin.com News reported that blockchaincenter.net's Altcoin Season Index indicated the beginning of altseason. The index continues to declare that it is currently "altcoin season," with the top 50 coins outperforming BTC in the previous 90 days. Kohn emphasizes that this trend is primarily driven by tokens related to ethereum scaling solutions like Optimism, Arbitrum, and Polygon. Staking and Gamefi tokens have also outperformed BTC in the early stages of 2023, indicating a diverse appetite for risk across different altcoin sectors.
Kohn's research highlights the significance of these developments: "The approval of new bitcoin ETFs has become a classic sell-the-news event, leading to a turbulent few weeks in the market." Glassnode notes that ethereum has emerged as the short-term winner, with investors recording multi-year highs in net realized profits. This suggests a growing willingness to engage in speculative activities, particularly in relation to an ETH ETF and capital rotation.
What are your thoughts on Glassnode's report regarding the altered dynamics of altcoins in the crypto market? Share your opinions in the comments section below.
Frequently Asked Questions
How is gold taxed by Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
The rules that govern these accounts differ from one state to the next. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you to delay withdrawals until April 1. New York is open until 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
Can I have physical gold in my IRA
Gold is money, not just paper currency or coinage. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans now invest in precious metals. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
Another reason is that gold has historically outperformed other assets in financial panic periods. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. During turbulent market conditions gold was one of few assets that outperformed stock prices.
Gold is one of the few assets that has virtually no counterparty risks. Your shares will still be yours even if your stock portfolio drops. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Finally, the liquidity that gold provides is unmatched. This means you can easily sell your gold any time, unlike other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows for you to benefit from the short-term fluctuations of the gold market.
Can the government take your gold
The government cannot take your gold because you own it. It is yours because you worked hard for it. It belongs exclusively to you. This rule could be broken by exceptions. Your gold could be taken away if your crime was fraud against federal government. Also, if you owe taxes to the IRS, you can lose your precious metals. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
What Precious Metals Can You Invest in for Retirement?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. You should add them to your portfolio if you are looking to diversify.
Gold: The oldest form of currency known to man is gold. It's also very safe and stable. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has always been popular among investors. It's a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's like silver or gold in that it is durable and resistant to corrosion. It's also more expensive than the other two.
Rhodium. Rhodium is used as a catalyst. It is also used for jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It is also cheaper. This is why it has become a favourite among investors looking for precious metals.
How much should you have of gold in your portfolio
The amount that you want to invest will dictate how much money it takes. If you want to start small, then $5k-$10k would be great. Then as you grow, you could move into an office space and rent out desks, etc. You don't need to worry about paying rent every month. Rent is only paid per month.
Also, you need to think about the type of business that you are going to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. You may get paid just once every 6 months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I recommend starting with $1k-$2k in gold and working my way up.
What is the benefit of a gold IRA?
There are many advantages to 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.
Another option is to rollover funds from another retirement account into a IRA with gold. This is a great way to make a smooth transition if you want to retire earlier.
The best part about gold IRAs? You don't have to be an expert. They are readily available at most banks and brokerages. Withdrawals are made automatically without having to worry about fees or penalties.
There are also drawbacks. The volatility of gold has been a hallmark of its history. Understanding why you want to invest in gold is essential. Are you looking for safety or growth? Are you trying to find safety or growth? Only once you know, that will you be able to make an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. You won't need to buy more than one ounce of gold to cover all your needs. Depending upon what you plan to do, you could need several ounces.
You don't need to have a lot of gold if you are selling it. You can even live with just one ounce. But you won't be able to buy anything else with those funds.
What is a Precious Metal IRA and How Can You Benefit From It?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Precious metals are often referred to as “bullion.” Bullion refers simply to the physical metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This will ensure that you receive annual dividends.
Precious metal IRAs have no paperwork or annual fees. 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.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Legal – WSJ
investopedia.com
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
How To
How to keep physical gold in an IRA
The easiest way to invest is to buy shares in companies that make gold. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
An alternative option would be to buy physical gold itself. You will need to either open an online or bank account or simply buy gold from a reliable seller. These options offer the convenience of easy access, as you don't need stock exchanges to do so. You can also make purchases at lower prices. It is also easier to check how much gold you have stored. You will receive a receipt detailing exactly what you paid. You also have a lower chance of theft than stocks.
However, there are disadvantages. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, the taxman might want to know where your gold has been placed!
BullionVault.com is the best website to learn about gold purchases in an IRA.
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By: Jamie Redman
Title: Report: Ethereum and Solana Showcase Unique Market Dynamics in Recent Altcoin Trends
Sourced From: news.bitcoin.com/report-ethereum-and-solana-showcase-unique-market-dynamics-in-recent-altcoin-trends/
Published Date: Tue, 23 Jan 2024 22:30:19 +0000
