A Landmark Decision by the SEC
In a significant turn of events, the U.S. Securities and Exchange Commission (SEC) has given its approval to 11 spot bitcoin exchange-traded funds (ETFs). This decision has been long-awaited by cryptocurrency enthusiasts, as it marks a milestone in the regulatory landscape for digital assets. However, despite this historic regulatory nod, the price of bitcoin has shown little movement over the past 24 hours. In stark contrast, ethereum has experienced a notable surge, overshadowing bitcoin's underperformance with a 9.1% rise on Wednesday.
Bitcoin's Underwhelming Performance
The market's response to the SEC's approval of the bitcoin ETFs has been unexpectedly muted. Typically, such approvals generate bullish sentiments and drive the price of the approved asset upwards. However, bitcoin's price movement has remained tepid, indicating a more complex market dynamic at play. Experts have been pondering the reasons behind this lackluster performance and have identified several contributing factors.
The Role of Erroneous Announcements
Two erroneous announcements have played a role in shaping bitcoin's underperformance. Firstly, Cointelegraph's incorrect report regarding Blackrock's ETF created confusion and may have affected market sentiment. Secondly, the SEC's mistaken social media post on platform X further added to the uncertainty. These misleading events may have contributed to a sense of skepticism and caution among investors.
The "Buy the Rumor, Sell the News" Effect
Another possible reason for bitcoin's stagnant price is the prolonged wait for the SEC's approval. The anticipation surrounding this decision may have led to a phenomenon known as the "buy the rumor, sell the news" effect. In this scenario, investors may have already priced in the approval and subsequently sold off their holdings, resulting in a lack of significant price movement post-approval.
Ethereum's Remarkable Surge
In contrast to bitcoin, ethereum has experienced a remarkable surge following the approval of the bitcoin ETFs. This highlights the dynamic and ever-changing nature of the cryptocurrency market. Almost immediately after the SEC's decision, ethereum rose to a high of $2,527 per unit. This surge in ethereum's price raises important questions about the future trends in the crypto world.
The Growing Expectation of an Ethereum ETF
There is now a growing expectation of an imminent spot-based Ethereum ETF. This further illustrates the changing attitudes of investors and the maturing nature of the crypto market. The ongoing transformation in the cryptocurrency realm emphasizes the intriguing relationship between regulatory decisions and market responses. As a result of the numerous misleading events the crypto community has faced, a significant amount of speculative excitement appears to have dissipated.
What are your thoughts on bitcoin's lackluster price performance? Share your opinions and insights in the comments section below.
Frequently Asked Questions
What is the value of a gold IRA
The benefits of a gold IRA are many. It is an investment vehicle that can diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This allows you to easily transition if your retirement is early.
The best part? You don’t need to have any special skills to invest into gold IRAs. These IRAs are available at all banks and brokerage houses. Withdrawals can be made instantly without the need to pay fees or penalties.
That said, there are drawbacks too. The volatility of gold has been a hallmark of its history. So it's essential to understand why you're investing in gold. Is it for growth or safety? Do you want to use it as an insurance strategy or for long-term growth? Only then will you be able make informed decisions.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. You won't need to buy more than one ounce of gold to cover all your needs. You may need several ounces, depending on what you intend to do with your precious gold.
You don't need to have a lot of gold if you are selling it. Even a single ounce can suffice. However, you will not be able buy any other items with those funds.
Should You Buy Gold?
In the past, gold was considered a haven for investors during economic 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.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts think that this could change in the near future. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- First, consider whether or not you need the money you're saving for retirement. It is possible to save for retirement while still investing your gold savings. The added protection that gold provides when you retire is a good option.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offer varying degrees of security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.
Don't buy gold unless you have done your research. Make sure to protect any gold you already own.
Can I purchase gold with my self directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from an existing retirement fund.
The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contract are financial instruments that depend on the gold price. They let you speculate on future price without having to own the metal. You can only hold physical bullion, which is real silver and gold bars.
Is it possible to hold a gold ETF within a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
A traditional IRA allows for contributions from both employer and employee. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
You can also get an Individual Retirement Annuity, or IRA. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs don't have to be taxable
How Does Gold Perform as an Investment?
The price of gold fluctuates based on supply and demand. Interest rates are also a factor.
Due to limited supplies, gold prices are subject to volatility. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How much should precious metals make up your portfolio?
To answer this question we need to first define precious metals. Precious metals refer to elements with a very high value relative other commodities. This makes them extremely valuable for trading and investing. Gold is today the most popular precious metal.
There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is not affected by inflation or 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. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. This is because investors expect lower interest rates, making bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors choose safe assets such Treasury Bonds over precious metals. Since these are scarce, they become more expensive and decrease in value.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. 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
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
investopedia.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
irs.gov
How To
Tips for Investing in Gold
Investing in Gold remains one of the most preferred investment strategies. Because investing in gold has many benefits. There are many ways to invest gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
You should consider some things before you decide to purchase any type of gold.
- First, verify that your country permits gold ownership. If so, then you can proceed. You might also consider buying gold in foreign countries.
- The second is to decide which kind of gold coin it is you want. You can go for yellow gold, white gold, rose gold, etc.
- Third, consider the cost of gold. Start small and build up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Don't forget to keep in mind that gold prices often change. Be aware of the current trends.
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By: Jamie Redman
Title: SEC Approves 11 Bitcoin ETFs, But Bitcoin's Price Remains Stagnant
Sourced From: news.bitcoin.com/ethereum-steals-the-spotlight-secs-approval-of-11-bitcoin-etfs-meets-tepid-market-reaction/
Published Date: Wed, 10 Jan 2024 22:23:19 +0000
