Standard Chartered's $200K Bitcoin Prediction
Standard Chartered, a leading international bank, has made a bold prediction regarding the price of bitcoin. According to the bank's analysts, if spot bitcoin exchange-traded funds (ETFs) are approved by the U.S. Securities and Exchange Commission (SEC), the price of bitcoin could soar to $200,000 by 2025. This approval is seen as a significant milestone in the normalization of bitcoin participation by institutional investors, and it is expected to drive substantial inflows and price increases for the cryptocurrency.
Spot Bitcoin ETF Approval: A Game-Changing Moment
In a research note published by Standard Chartered's Global Research team, the bank elaborated on the potential "price upside" of bitcoin resulting from the approval of spot bitcoin ETFs by the SEC. The note, authored by Geoff Kendrick, the bank's head of crypto research, and Suki Cooper, a precious metal analyst at Standard Chartered Bank NY Branch, outlines the following:
"ETF approval is a key driver of BTC price upside… We see this as a watershed moment for normalizing bitcoin participation by institutional money, and we expect approval to drive significant inflows and price upside for BTC."
To provide context, the analysts draw a parallel with the introduction of the first U.S.-based gold exchange-traded product (ETP) in 2004. They highlight that the price of gold increased 4.3 times over a period of seven to eight years as ETP holdings matured. The analysts anticipate similar price gains for bitcoin, but with a shorter timeline of one to two years due to the expected faster development of the BTC ETF market.
The Road to $200K: A Closer Look
Standard Chartered's analysts further elaborate on their predictions, stating that they expect bitcoin's price to reach $100,000 by the end of 2024. However, if the anticipated inflows from ETFs materialize as expected, they believe that a price level closer to $200,000 is plausible by the end of 2025. The analysts estimate that between 437,000 and 1.32 million new bitcoins will be held in spot U.S. ETFs by the end of 2024, with a corresponding value of approximately $50-100 billion.
It is worth noting that Standard Chartered has displayed optimism towards bitcoin in the past. Last year, the bank announced that the "crypto winter" had ended, and later predicted that the "crypto spring" had begun, suggesting that bitcoin could reach $100,000 sooner than previously anticipated.
What's Your Take on Standard Chartered's Prediction?
The prediction made by Standard Chartered regarding the future price of bitcoin has sparked discussions and debates among cryptocurrency enthusiasts. Do you believe that bitcoin will reach $200,000 by 2025, as forecasted by Standard Chartered? Share your thoughts and opinions in the comments section below.
Frequently Asked Questions
How much money should I put into my Roth IRA?
Roth IRAs are retirement accounts that allow you to withdraw your money tax-free. These accounts cannot be withdrawn until you turn 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. You cannot touch your principal (the amount you originally deposited). This means that you can’t take out more money than you originally contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. So, when you withdraw, you’ll pay taxes on those earnings. Let’s assume that you contribute $5,000 each year to your Roth IRA. Let’s say you earn $10,000 each year after contributing. You would owe $3,500 in federal income taxes on the earnings. The remaining $6,500 is yours. Since you’re limited to taking out only what you initially contributed, that’s all you could take out.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. On top of that, you’d lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
There are two types if Roth IRAs: Roth and Traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs don’t allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Can I hold physical gold in my 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. Investors use gold today as part of their diversified portfolio, because it tends to perform better in times of financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. Even though owning gold is not a guarantee of making money, there are many reasons why you might want to add gold to your retirement savings portfolio.
Gold has historically performed better during financial panics than other assets. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one of the few assets that performed better than stocks during turbulent market conditions.
Another benefit to investing in gold? It has virtually zero counterparty exposure. If your stock portfolio goes down, you still own your shares. If you have gold, it will still be worth your shares even if the company in which you invested defaults on its debt.
Finally, the liquidity that gold provides is unmatched. This means that you can sell gold anytime, regardless of whether or not another buyer is available. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
What are the benefits to having a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You can decide how much money you withdraw each year. There are many types available. Some are more suitable for students who wish to save money for college. Others are made for investors seeking higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This type of account might be a good choice if your goal is to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn’t require you to worry about taxation while you wait to get them. People who want to invest their money rather than spend it make gold IRA accounts a great option.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. This eliminates the need to constantly make deposits. To make sure you don’t miss any payments, you can also set up direct deductions.
Finally, the gold investment is among the most reliable. Because it’s not tied to any particular country, its value tends to remain steady. Even in times of economic turmoil, gold prices tend not to fluctuate. Gold is a good option for protecting your savings from inflation.
How much should precious metals be included in your portfolio?
This question can only be answered if we first know what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. They are therefore very attractive for investment and trading. Gold is currently the most widely traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also relatively unaffected both by inflation and deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. But they don’t always move in tandem with one another. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors expect lower interest rate, making bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. Since these are scarce, they become more expensive and decrease in value.
Diversifying across precious metals is a great way to maximize your investment returns. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
bbb.org
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads, Example, and Risk Metrics
irs.gov
How To
Tips to Invest in Gold
Investing in Gold is a popular investment strategy. There are many advantages to investing in Gold. There are many ways you can invest in gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.
Before buying any type gold, it is important to think about these things.
- First, make sure you check if your country allows you own gold. If it is, you can move on. If not, you may want to consider purchasing gold from overseas.
- You should also know the type of gold coin that you desire. You have the option of choosing yellow, white, or rose gold.
- Third, consider the cost of gold. Start small and move up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- Remember that gold prices are subject to change regularly. It is important to stay up-to-date with the latest trends.
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By: Kevin Helms
Title: Standard Chartered Predicts Bitcoin Price Could Reach $200K in 2025 with Spot Bitcoin ETF Approval
Sourced From: news.bitcoin.com/standard-chartered-btc-could-hit-200k-in-2025-with-spot-bitcoin-etf-approval/
Published Date: Wed, 10 Jan 2024 01:00:47 +0000
