Hey there, crypto enthusiasts! Today, let's dive into the wild world of Bitcoin price movements. Imagine this: Bitcoin's price was cruising near $120,000, then suddenly took a dip below to $119,768. Quite the rollercoaster, right? All of this comes after a bumpy yet bullish ride at the start of October.
The Euphoric Phase: What's Happening?
Picture this: some analysts believe that the market has stepped into what they call the "euphoria phase" of this current bull run. Bitcoin's price has soared over 30% since the year began, thanks to various factors like increased investments in U.S.-listed Bitcoin exchange-traded funds and growing confidence in digital assets.
The Late-Stage Rally
Now, despite a small hiccup, on-chain analysts predict that the upward trend is far from over. They use models like the Bitcoin "Cycle Master" to show that we might be in a late-stage rally. This phase typically sees rapid price surges followed by sharp corrections. The model hints at a cycle peak near $180,000 — quite an exciting prospect, isn't it?
Another interesting metric, the Market Value to Realized Value (MVRV) ratio, indicates that there's still room for Bitcoin's price to climb before we hit the peak. This ratio suggests a potential range of $180,000 to $195,000, signaling more upside ahead before we reach the peak of excitement.
The Economic Landscape and Bitcoin's Journey
Now, let's talk about the bigger picture. Economic factors play a role in Bitcoin's journey. Recent updates from the Federal Reserve hint at possible rate cuts, despite looming inflation concerns. The U.S. government shutdown and a stronger dollar have also influenced Bitcoin's narrative alongside gold.
If history repeats itself, we might see Bitcoin soaring towards the $180,000–$200,000 range before the sentiment shifts. So, keep an eye on that price tag!
As we stand with Bitcoin around $120,000, traders are eagerly anticipating the next surge. Will it be up, up, and away, or are we headed for a downward spiral? Only time will tell.
Ready to ride the Bitcoin wave? Don't miss out on the action and stay tuned for more updates!
This post Bitcoin Price Slumps Below $120,000, But Market Enters 'Euphoria Phase' and Analysts Eye $180K Peak first appeared on Bitcoin Magazine.
Frequently Asked Questions
How does a gold IRA work?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase physical gold bullion coins anytime. You don't have to wait until retirement to start investing in gold.
An IRA lets you keep your gold for life. You won't have to pay taxes on your gold investments when you die.
Your heirs can inherit your gold and avoid capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
To open a gold IRA, you will first need to create an individual retirement account (IRA). After you have done this, an IRA custodian will be assigned to you. 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 reporting.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit is $1,000 A higher interest rate will be offered if you invest more.
When you withdraw your gold from your IRA, you'll pay taxes on it. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. A violation of this rule can lead to severe financial consequences.
What are the pros and disadvantages of a gold IRA
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. However, there are disadvantages to this type investment.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management charges ranging anywhere from $10 to $50.
If you prefer your money to be kept out of a bank, then you will need insurance. Most insurers require you to own a minimum amount of gold before making a claim. Insurance that covers losses upto $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit the amount of gold that you are allowed to own. Others allow you the freedom to choose your own weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Futures contracts for gold are less expensive than physical gold. Futures contracts allow you to buy gold with more flexibility. They let you set up a contract that has a specific expiration.
You will also have to decide which type of insurance coverage is best for you. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. However, it does cover damage caused by natural disasters. You may consider adding additional coverage if you live in an area at high risk.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. Banks charge between $25 and $40 per month for safekeeping.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians cannot sell your assets. Instead, they must keep your assets for as long you request.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. The plan should also include information about how much you are willing to invest each month.
After filling in the forms, please send them to the provider. After reviewing your application, the company will send you a confirmation mail.
You should consult a financial planner before opening a Gold IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
Is gold a good choice for an investment IRA?
Gold is an excellent investment for any person who wants to save money. You can diversify your portfolio with gold. There is much more to gold than meets your eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the most ancient currency in the universe.”
Gold is not created by governments, but it is extracted from the earth. It's hard to find and very rare, making it extremely valuable.
The supply and demand for gold determine the price of gold. When the economy is strong, people tend to spend more money, which means fewer people mine gold. This results in gold prices rising.
The flip side is that people tend to save money when the economy slows. This increases the production of gold, which in turn drives down its value.
This is why gold investment makes sense for both individuals and businesses. You will benefit from economic growth if you invest in gold.
In addition to earning interest on your investments, this will allow you to grow your wealth. In addition, you won’t lose any money if gold falls in value.
How much should precious metals be included in your portfolio?
To answer this question we need to first define precious metals. Precious metals are those elements that have an extremely high value relative to other commodities. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.
However, many other types of precious metals exist, including silver and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is not affected by inflation or deflation.
All precious metals prices tend to rise with the overall market. However, the prices of precious metals do not always move in sync 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 rates of interest, which makes bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. They become less expensive and have a lower value because they are limited.
Diversifying across precious metals is a great way to maximize your investment returns. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
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.
Diversifying your portfolio may require you to pay additional fees. These fees vary depending on what type of IRA you choose. Some companies offer free checking accounts, but charge monthly fees to open IRA accounts.
Most providers also charge annual management costs. These fees can range from 0% up to 1%. The average rate is.25% annually. These rates are often waived if a broker like TD Ameritrade is used.
Can the government seize your gold?
The government cannot take your gold because you own it. It's yours, and you earned it by working hard. It belongs to your. This rule could be broken by exceptions. Your gold could be taken away if your crime was fraud against federal government. Your precious metals can also be lost if you owe tax to the IRS. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Statistics
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- 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)
External Links
irs.gov
finance.yahoo.com
bbb.org
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads and Example. Risk Metrics
How To
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Because of its intrinsic value, it was also widely traded. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This caused a drop in foreign currency demand which resulted in an increase of their prices. In this period, large amounts of gold coin were minted by the United States, which caused the gold price to drop. The U.S. government was unable to pay its debts due to too much money being in circulation. They decided to sell some excess gold to Europe in order to do this.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. Since then, the price of gold has increased significantly. Although the price of gold fluctuates today, it remains one of your most safe investments.
—————————————————————————————————————————————————————————————–
By: Micah Zimmerman
Title: Bitcoin's Rollercoaster Ride: From Slump to Euphoria with Analysts Eyeing $180K Peak
Sourced From: bitcoinmagazine.com/markets/bitcoin-price-slumps-analysts-eye-180k
Published Date: Thu, 09 Oct 2025 17:26:51 +0000
