A Promising Outlook for Bitcoin and Crypto Assets
As the year 2024 draws near, market strategists at Bitfinex have expressed their optimism for bitcoin (BTC) and crypto assets in general. Despite facing regulatory and reputational challenges, these assets have proven their resilience. Bitfinex analysts believe that the crypto market is currently experiencing a cycle of greed and regulation, and they foresee an upward trajectory with the market capitalization potentially doubling.
Market Cap Predictions and the Fear and Greed Index
Looking ahead to 2024, Bitfinex analysts suggest that the crypto economy could reach a market cap of up to $3.2 trillion. The latest Bitfinex Alpha report highlights a shift towards "extreme greed" in the crypto fear and greed index, indicating that bitcoin (BTC) may reach mid-bull market highs. This suggests a vibrant phase for the market.
Institutional Investors and Bitcoin
Bitfinex researchers emphasize the growing interest of institutional investors in crypto assets, particularly bitcoin. The potential introduction of spot bitcoin ETFs is seen as a catalyst that could lead to a reallocation of capital into higher-risk crypto assets. Nevertheless, Bitfinex strategists believe that bitcoin will continue to be favored among institutional portfolios, especially in the first half of 2024.
The MVRV Metric and Miner Behavior
The MVRV metric, which compares market value to realized value, provides insights into bitcoin's market behavior. Bitfinex's report suggests that the market environment in 2024 will mirror the bullish recoveries seen in the mid-2010s. As 2024 is a halving year, miner profitability and behavior become even more important. The report indicates a healthy market with room for growth and limited selling pressure from miners.
Global Adoption of Crypto Assets
The Alpha report points out the adoption trajectory of bitcoin in countries like El Salvador and Argentina. These countries' embrace of crypto assets as hedges against economic instability reflects a broader global trend. Bitfinex researchers predict that this adoption curve will steepen in 2024. They anticipate a significant increase in global cryptocurrency ownership, potentially reaching between 850 and 950 million individuals. This surge highlights the growing acceptance and integration of crypto assets like BTC into mainstream economic activities.
The Macro Outlook for 2024
Bitfinex's report concludes that the broader macroeconomic outlook for 2024 indicates stabilizing wage growth and manageable inflation levels. Despite geopolitical tensions and economic uncertainties, a moderated inflation rate and a more efficient global economy are expected. This stable market environment is conducive to the growth of crypto assets.
In conclusion, Bitfinex's Alpha report paints a bullish picture for bitcoin and crypto assets as 2024 approaches. The analysts' optimism is fueled by factors such as institutional interest, the MVRV metric, global adoption, and the macroeconomic outlook. As the crypto market continues to evolve, it will be interesting to see how these predictions unfold. What are your thoughts on Bitfinex's Alpha report? Share your opinions in the comments section below.
Frequently Asked Questions
Is buying gold a good option for retirement planning?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
Physical bullion is the most popular method of investing in gold. However, there are many other ways to invest in gold. It is best to research all options and make informed decisions based on your goals.
If you don’t have the funds to invest in safe places, such as a safe deposit box or mining equipment companies, buying shares of these companies might be a better investment. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
How does a gold IRA account work?
For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.
You can purchase gold bullion coins in physical form at any moment. You don't have to wait until retirement to start investing in gold.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold holdings won't be subject to taxes when you pass away.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a Gold IRA, you'll need to first set up an Individual Retirement Account (IRA). Once you've done so, you'll be given an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual returns.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit is $1,000 You'll get a higher rate of interest if you deposit more.
When you withdraw your gold from your IRA, you'll pay taxes on it. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
You may not be required to pay taxes if you take out only a small amount. However, there are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. If you do, you could face severe financial consequences.
What is the Performance of Gold as an Investment?
Gold's price fluctuates depending on the supply and demand. It is also affected by interest rates.
Because of their limited supply, gold prices can fluctuate. There is also a risk in owning gold, as you must store it somewhere.
What precious metals could you invest in to retire?
These precious metals are among the most attractive investments. Both are easy to sell and can be bought easily. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: Gold is one the oldest forms currency known to man. It's also very safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Silver has always been popular among investors. It's a good choice for those who want to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinum: A new form of precious metal, platinum is growing in popularity. It is very durable and resistant against corrosion, much like silver and gold. It's also more expensive than the other two.
Rhodium: Rhodium is used in catalytic converters. It is also used to make jewelry. It is also very affordable in comparison to other types.
Palladium: Palladium has a similarity to platinum but is more rare. It's also less expensive. This is why it has become a favourite among investors looking for precious metals.
Should You Open a Precious Metal IRA?
The most important thing you should know before opening an IRA account is that precious metals are not covered by insurance. There are no ways to recover the money you lost in an investment. This includes losing all your investments due to theft, fire, flood, etc.
This type of loss can be avoided by investing in physical silver and gold coins. These items have been around thousands of years and are irreplaceable. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
You should choose a reputable firm that offers competitive rates. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
If you decide to open an account, remember that you won't see any returns until after you retire. Remember the future.
Should You Buy or Sell Gold?
Gold was a safe investment option for those who were in financial turmoil. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Some experts think that this could change in the near future. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. You can save money for retirement even if you don't invest in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, be sure to understand your obligations before you purchase gold. Each offers varying levels of flexibility and security.
- Keep in mind that gold may not be as secure as a bank deposit. Losing your gold coins could result in you never being able to retrieve them.
Don't buy gold unless you have done your research. You should also ensure that you do everything you can to protect your gold.
What are the fees associated with an IRA for gold?
A monthly fee of $6 for an Individual Retirement Account is charged. This includes account maintenance fees and investment costs for your chosen investments.
If you want to diversify, you may be required to pay extra fees. These fees can vary depending on which type of IRA account you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Many providers also charge annual management fees. These fees are usually between 0% and 1%. The average rate for a year is.25%. These rates are often waived if a broker like TD Ameritrade is used.
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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (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)
- 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)
External Links
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
irs.gov
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
How To
3 Ways to Invest Gold for Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. You can invest in gold through your 401(k), if you have one at work. It is also possible to invest in gold from outside of your work environment. One example is opening a custodial accounts at Fidelity Investments if an IRA (Individual Retirement Account), if you already own one. Or, if you don't already own any precious metals, you may want to consider buying them directly from a reputable dealer.
These are the rules for gold investing:
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, instead, transfer cash to your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. It's easier to sell physical gold coins rather than certificates. There are no storage fees for physical gold coins.
- Diversify your Portfolio. This means that you should diversify your wealth by investing in different assets. This can reduce market volatility and help you be more flexible.
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By: Jamie Redman
Title: Bitfinex Analysts Optimistic About Bitcoin and Crypto Assets as 2024 Approaches
Sourced From: news.bitcoin.com/2024-crypto-economy-forecast-bitfinex-researchers-predict-3-2-trillion-market-cap-amid-rising-adoption/
Published Date: Fri, 22 Dec 2023 23:30:46 +0000
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