Introduction
Veteran trader Peter Brandt has raised concerns about the current hype surrounding bitcoin exchange-traded funds (ETFs). According to Brandt, the growing interest from the general public may indicate that it is time for experienced traders to sell their holdings. He also sees the expected approval of spot bitcoin ETFs as a typical "buy the rumor, sell the news" event.
Brandt Questions BTC Maximalists' Commitment
Brandt believes that the enthusiasm among bitcoin maximalists for the approval of spot bitcoin ETFs is contradictory to the core values of bitcoin itself. Bitcoin maximalists have long celebrated the fact that bitcoin operates independently from government control. Brandt questions why these same individuals see the Securities and Exchange Commission (SEC) and ETFs as the saviors of their financial future.
Buy the Rumor, Sell the News
The concept of "buy the rumor, sell the news" is a well-known trading strategy in traditional stock markets. It involves buying a security based on speculation about an upcoming event and selling it once the event is announced. Brandt suggests that the anticipated approval of spot bitcoin ETFs by the SEC may fall into this category.
In a post on X, Brandt shares two observations. He highlights the irony of bitcoin maximalists embracing the government's influence on crypto markets, which goes against their belief in bitcoin's independence. He also questions whether the current ETF hype signals a time for experienced traders to exit their positions.
Experienced Traders Should Consider Selling
Brandt draws parallels between the current ETF hype and a strategy followed by seasoned traders. According to this strategy, when the general public starts showing intense interest in an asset, it is often a sign for experienced traders to sell. While Brandt acknowledges the possibility of being wrong in his assessment, he invites those with different perspectives to share their thoughts.
Responses to Brandt's post on X varied. One social media user disagreed with Brandt, stating that if the SEC approves multiple spot bitcoin ETFs, the price of bitcoin would likely increase. Another user argued that Brandt's assertions only apply to the average European or American individual, as bitcoiners from other parts of the world are more concerned with accessing a parallel financial system.
Conclusion
As the hype around bitcoin ETFs continues to grow, veteran trader Peter Brandt questions the commitment of bitcoin maximalists and suggests that it may be time for experienced traders to sell. The anticipated approval of spot bitcoin ETFs by the SEC is seen as a potential "buy the rumor, sell the news" event. However, opinions on the impact of ETF approvals vary, with some believing it will drive the price of bitcoin up while others see it as a non-event. The future of bitcoin ETFs and their influence on the market remains uncertain, and only time will reveal their true impact.
Frequently Asked Questions
What precious metals could you invest in to retire?
It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
Gold: This is the oldest form of currency that man has ever known. It's stable and safe. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: Silver has always been popular among investors. It's an ideal choice for those who prefer to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinium is another precious metal that is becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. It's also more expensive than the other two.
Rhodium: The catalytic converters use Rhodium. It's also used in jewelry making. It is also quite affordable compared with other types of precious metals.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It is also cheaper. It's a popular choice for investors who want to add precious metals into their portfolios.
What tax is gold subject in an IRA
The fair market value at the time of sale is what determines how much tax you pay on gold sales. If you buy gold, there are no taxes. It is not income. If you sell it later you will have a taxable profit if the price goes down.
For loans, gold can be used to collateral. Lenders try to maximize the return on loans that you take against your assets. Selling gold is usually the best option. This is not always possible. They may keep it. Or they might decide to resell it themselves. In either case, you risk losing potential profits.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. If you don't plan to use it as collateral, it is better to let it be.
How Does Gold Perform as an Investment?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Gold prices are volatile due to their limited supply. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
What are the fees associated with an IRA for gold?
$6 per month is the Individual Retirement Account Fee (IRA). 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 vary depending on what type of IRA you choose. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Many providers also charge annual management fees. These fees can range from 0% up to 1%. The average rate is.25% per year. These rates are often waived if a broker like TD Ameritrade is used.
Statistics
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not exactly legal – WSJ
irs.gov
bbb.org
investopedia.com
How To
Tips for Investing In Gold
Investing in Gold remains one of the most preferred investment strategies. This is due to the many benefits of investing in gold. There are several ways to invest in gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.
Before buying any kind of gold, you need to consider these things.
- First, make sure you check if your country allows you own gold. If you have permission to possess gold in your country, you can then proceed. If not, you may want to consider purchasing gold from overseas.
- The second thing you need to do is decide what type of gold coins you want. You have options: you can choose from yellow gold, white or rose gold.
- The third factor to consider is the price for gold. It is best to start small and work your way up. You should diversify your portfolio when buying gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- You should also remember that gold prices can change often. It is important to stay up-to-date with the latest trends.
—————————————————————————————————————————————————————————————–
By: Terence Zimwara
Title: Is it Time to Sell Bitcoin ETFs? Veteran Trader Peter Brandt Questions BTC Maximalists' Commitment
Sourced From: news.bitcoin.com/veteran-trader-peter-brandt-labels-bitcoin-etf-a-classic-buy-the-rumor-sell-the-news-event/
Published Date: Wed, 10 Jan 2024 19:40:15 +0000
Related posts:
Trader Peter Brandt Takes Short Position on Ethereum, Predicts Price Plunge
Bitcoin ETF Approval: Market Impact and “Buy the Rumor, Sell the News” Phenomenon
You Can Believe The Maximalists: Bitcoin Is Separate From Crypto
Peter Schiff Expects Bitcoin ETF Approval to be a Nonevent, Predicts Minimal Investor Demand
