A senior analyst specializing in digital assets at global asset management firm Alliance Bernstein has advised investors to take advantage of the recent bitcoin dip and shift their focus towards the new bitcoin adoption cycle. This recommendation comes after the U.S. Securities and Exchange Commission (SEC) approved spot bitcoin exchange-traded funds (ETFs).
Buy the Bitcoin Dip and Embrace the New Adoption Cycle
In a client note reviewed by Yahoo Finance, Gautam Chhugani, the senior analyst at Alliance Bernstein, provided a straightforward piece of advice to investors: "Buy the dip and focus on the new bitcoin adoption cycle. The minor selloffs present opportunities due to the significant potential upside."
The recent approval of 11 spot bitcoin ETFs by the SEC caused a surge in the price of bitcoin, pushing it past $49,000. However, the price subsequently dropped to around $42,000. As of now, BTC is being traded at $43,170.14.
Optimism Driven by Anticipated Spot Bitcoin ETF Approval
Alliance Bernstein had previously stated in a note last November that it expects the price of bitcoin to reach $150,000 by 2025. Chhugani explained that this prediction is based on the optimistic outlook regarding the approval of spot bitcoin ETFs. He noted, "You may not share the same level of enthusiasm for bitcoin as we do, but objectively considering bitcoin as a commodity suggests a turning point in the cycle."
Spot Bitcoin ETF Approval Seen as a Landmark Moment
The approval of spot bitcoin ETFs by the SEC is widely regarded as a significant milestone. Alesia Haas, the chief financial officer of crypto exchange Coinbase, referred to it as "a landmark day for crypto." However, Haas also emphasized that the widespread adoption of cryptocurrency is a long-term process and that the approval of spot bitcoin ETFs is just one step along the way. She believes that these ETFs will attract trillions of dollars from investors who were previously unable to access crypto assets and bitcoin.
What are your thoughts on the senior analyst's recommendation to buy the bitcoin dip? Share your opinions in the comments section below.
Frequently Asked Questions
Can I keep physical gold in an IRA?
Gold is money. Not just paper currency. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and 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. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
Gold has historically performed better during financial panics than other assets. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During turbulent market conditions gold was one of few assets that outperformed stock prices.
One of the best things about investing in gold is its virtually zero counterparty risk. Your stock portfolio can fall, but you will still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, the liquidity that gold provides is unmatched. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Because gold is so liquid compared to other investments, buying it in small amounts makes sense. This allows you to take advantage of short-term fluctuations in the gold market.
How is gold taxed in Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
But if you put the money into a traditional IRA or 401(k), there's no tax when you withdraw the money. Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.
Each state has its own rules regarding these accounts. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. In Massachusetts, you can wait until April 1st. New York allows you to wait until age 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
What does gold do as an investment?
The supply and demand for gold affect the price of gold. It is also affected by interest rates.
Gold prices are volatile due to their limited supply. You must also store physical gold somewhere to avoid the risk of it becoming stale.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
irs.gov
finance.yahoo.com
investopedia.com
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. This makes them great options for people who don't have access to employer matching funds.
It is important to save consistently over time. You may not be eligible for any tax benefits if your contribution is less than the maximum allowed.
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By: Kevin Helms
Title: Senior Analyst Recommends Buying Bitcoin Dip and Focusing on New Adoption Cycle
Sourced From: news.bitcoin.com/analyst-advises-investors-to-buy-the-bitcoin-dip-predicts-asymmetric-upside-ahead/
Published Date: Wed, 17 Jan 2024 02:30:02 +0000
