Bitcoin's value was observed to stride towards $28,000 on Monday, as market reactions to the Securities and Exchange Commission (SEC) decision to refrain from contesting the Grayscale ruling continued. This decision implies that Grayscale could soon transition its Bitcoin trust into an Exchange-Traded Fund (ETF). Concurrently, Ethereum was seen edging towards $1,600.
Bitcoin's Market Performance
Bitcoin (BTC) was on the brink of breaching the $28,000 threshold on Monday, as markets responded to the SEC’s decision to refrain from contesting a court ruling in favor of Grayscale. BTC/USD soared to a high of $27,968.93 earlier in the day's trading session, following the low at $26,817.89 on Sunday.
Today's upward trend catapulted Bitcoin to its highest value since October 9, effectively offsetting all losses incurred last week. However, early gains gradually receded, with the relative strength index (RSI) unable to surpass a resistance level of 60.00. At the moment, the price strength is observed at 58.98, with Bitcoin hovering around the $27,800 mark. It is anticipated that traders will continue to steer towards $28,000 in the ensuing hours and throughout the week.
Ethereum's Market Performance
Ethereum (ETH) also commenced the week on a positive note, with its price increasing for the fourth consecutive session. After hitting a low at $1,550.88 on Sunday, ETH/USD sprinted to a high of $1,588.45 earlier in the day.
The current bullish trend was initiated after traders dismissed a breakout below a support level of $1,540, and instead, gravitated towards a resistance level at $1,590. Market bulls may attempt to breach this resistance level as the trading session continues, but to do so, they would need to overcome an upcoming resistance level of 48.00 on the RSI. At the time of writing, the index is at 46.18, slightly below the aforementioned resistance level.
Do you anticipate the market sentiment of today to persist throughout the week? Share your viewpoints in the comments section below.
Frequently Asked Questions
Can I buy or sell gold from my self-directed IRA
However, gold can only be purchased with your self-directed IRA. To do so, you must first open a brokerage account at TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. 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.
What are the pros & con's of a golden IRA?
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. But, this type of investment comes with its own set of disadvantages.
You may lose all your accumulated savings if you take too much out of your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5% and 2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
Insurance will be required if you would like to keep your cash out of banks. Insurance companies will usually require that you have at least $500,000. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. You may be limited in the amount of gold you can have by some providers. Some providers allow you to choose your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Gold futures contracts are more expensive than physical gold. However, futures contracts give you flexibility when buying gold. You can set up futures contracts with a fixed expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy does NOT include theft protection and loss due to fire or flood. However, it does cover damage caused by natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Apart from insurance, you should consider the costs of storing your precious metals. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
A qualified custodian is required to help you open a Gold IRA. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians are not allowed to sell your assets. They must instead keep them for as long as you ask.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. The plan should also include information about how much you are willing to invest each month.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. 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 are experts at investing and can help you determine which type of IRA is best for you. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
How to open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). If you do, you must open the account by completing Form 8606. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. This form must be submitted within 60 days of the account opening. Once this has been completed, you can begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, it will be the same process as an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS requires that you are at least 18 years old and have earned an income. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. Contributions must be made on a regular basis. These rules apply to contributions made directly or through employer sponsorship.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you can't purchase physical bullion. This means you won’t be able to trade stocks and bonds.
However, there are two significant drawbacks to investing in precious metals via an IRA. First, they are not as liquid or as easy to sell as stocks and bonds. This makes them harder to sell when needed. Second, they don’t produce dividends like stocks or bonds. You'll lose your money over time, rather than making it.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not exactly legal – WSJ
The best way online to buy gold or silver
First, understand the basics of gold. It is a precious metal that is very similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It's difficult to use, so most people prefer purchasing jewelry made from it rather than actual bars.
There are two types today of gold coins. One is legal tender while the other is bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They cannot be used in currency exchanges. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. Each dollar spent by the buyer is worth 1 gram.
When you are looking to purchase gold, the next thing to know is where to get it. There are several options available if your goal is to purchase gold from a dealer. You can start by visiting your local coin shop. You can also go to a reputable website such as eBay. You might also consider buying gold from an online private seller.
Private sellers are individuals that offer gold at wholesale or retail prices. Private sellers will charge you a 10% to 15% commission for every transaction. A private seller will usually return less money than a coin shop and eBay. This option can be a good choice for investing in gold because it allows you to control the price.
Another way to buy gold is by investing in physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. Physical gold must be kept safe in an impassible container, such as a vault.
You can either visit a bank, pawnshop or bank to buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. The pawnshop is a small business that allows customers to borrow money to buy items. Banks charge higher interest rates than those offered by pawn shops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold is easy too. A company such as GoldMoney.com can help you set up a simple bank account and get paid immediately.
By: Eliman Dambell
Title: Bitcoin and Ethereum Market Dynamics: Bitcoin Approaches $28,000 Amidst Rising Grayscale ETF Expectations
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-nears-28000-as-hopes-for-grayscales-etf-rise/
Published Date: Mon, 16 Oct 2023 13:17:01 +0000
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