The anticipated approval of spot bitcoin exchange-traded funds (ETFs) applications by the U.S. Securities and Exchange Commission (SEC) is predicted to cause the price of the top cryptocurrency to surge to $50,000 in January, according to the latest market preview by Matrixport. The crypto financial services platform also suggests that the price of BTC could reach $125,000 due to the combined effect of ETF approval and bitcoin halving.
BTC Poised for Breakout in Early 2024
Following its typical consolidation phase in mid-to-end December, the USD price of bitcoin is expected to "break out on a robust beginning-of-the-year buying flow." Matrixport's market preview forecasts a price jump to $50,000 in January for the top cryptocurrency.
Matrixport, along with other industry players, views the approval of spot bitcoin ETFs by the SEC as a significant event that will drive bitcoin's rally. The platform argues that unlike the bearish sentiment seen a year ago, institutional investors are unlikely to stay on the sidelines this time.
"Institutional investors cannot afford to miss out on any potential rally again and, therefore, have to buy immediately when the markets open for trading in 2024. We expect an immediate rally that once again catches investors off-guard," the Matrixport market preview stated.
Despite bitcoin's 160% growth in 2023, experts still anticipate a surge in price once the SEC approves spot bitcoin ETF applications from industry giants like Blackrock and Fidelity. Initial reports suggesting that the ETFs would be approved on January 2 or 3 have already contributed to a mini rally, with bitcoin surpassing the $45,000 mark for the first time in two years.
Impact of Bitcoin Halving
While some experts argue that the current price of bitcoin already incorporates the impact of SEC approvals, Matrixport's market preview suggests that an estimated $24-50 billion of inflows will trigger a new rally. The platform believes that the approval of ETFs, combined with the upcoming bitcoin halving, could push the price of BTC to $125,000.
Addressing the limited minting activities of Tether during a time when a bull run is expected, the market review states:
"Although we are not seeing an increase in minting activities at Tether, which would signal fiat into crypto inflows, the fact that prices are rallying might be a sign that there are no sellers in the market and prices are squeezing higher."
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Frequently Asked Questions
How does a gold IRA account work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can purchase physical bullion gold coins at any point in time. You don't have to wait until retirement to start investing in gold.
An IRA lets you keep your gold for life. When you die, your gold assets won't be subjected to taxes.
Your gold is passed to your heirs without capital gains tax. It is not required that you include your gold in the final estate report because it remains outside your estate.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as a middleman between you and the IRS.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual returns.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit required for gold bullion coins purchase is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
You will pay taxes when you withdraw your gold from your IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
You should avoid taking out more than 50% of your total IRA assets yearly. You could end up with severe financial consequences.
Who is the owner of the gold in a gold IRA
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
A financial planner or accountant should be consulted to discuss your options.
Can the government seize your gold?
You own your gold and therefore the government cannot seize it. It's yours, and you earned it by working hard. It belongs entirely to you. However, there may be some exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. Your precious metals can also be lost if you owe tax to the IRS. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
Statistics
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (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)
External Links
bbb.org
investopedia.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- How do you keep your IRA Gold at Home? It's not exactly legal – WSJ
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
How To
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. You should start as soon as you are eligible (usually at age 50) and continue saving throughout your career. You must contribute enough each year to ensure that you have adequate growth.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
Savings should be done consistently and regularly over time. You will lose any potential tax advantages if you don't contribute enough.
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By: Terence Zimwara
Title: Bitcoin ETF Approval Expected to Drive Price to $50,000 in January: Matrixport
Sourced From: news.bitcoin.com/spot-etf-approvals-will-see-btc-value-rising-to-50000-in-january-matrixport/
Published Date: Tue, 02 Jan 2024 23:00:56 +0000
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