Bitcoin Futures Market Gains Momentum
The open interest (OI) in Bitcoin futures has experienced a significant surge in the past 24 hours, with CME Group's OI reaching an impressive milestone of 100,000 bitcoins, equivalent to $3.4 billion. This surge is not limited to CME Group; platforms such as Binance, Deribit, Bitget, and Okx are also witnessing substantial increases in open interest.
Understanding Bitcoin Futures Open Interest
For those unfamiliar with the term, open interest (OI) in Bitcoin futures refers to the level of market engagement and the amount of money or contracts actively in circulation. Simply put, it represents the sum of unsettled futures contracts that have not been cleared through a counter-trade or delivery. Recent data shows a remarkable increase in Bitcoin futures open interest within just 48 hours.
Research conducted by K33 Research reveals that CME BTC futures open interest has surpassed 100,000 BTC, setting a new record. With this surge, CME now commands a 25% share of the market, narrowing the gap with Binance, the current leader in the futures sector, to a mere 4%. On October 23, there was also a significant increase in CME's options volume and open interest related to BTC futures.
Deribit is not far behind, with both its futures and options experiencing substantial growth. The platform's Bitcoin options open interest has surpassed the $12 billion mark, while its Bitcoin futures open interest is inching close to $1 billion. Open interest provides insights into overall market activity and capital flow in the futures market. An increase in open interest usually indicates heightened market enthusiasm, while a decrease may suggest waning interest.
As of October 23, Binance reported a staggering $12.08 billion in Bitcoin futures open interest. Other significant players in the futures market include Bitget, Okx, Gate.io, Kucoin, and Bitmex. Additionally, Dydx and Crypto.com have both recently experienced spikes in open interest. This newfound interest is largely attributed to the potential approval of a spot Bitcoin exchange-traded fund (ETF).
The recent legal victory by Grayscale and Blackrock's preparations for an ETF are seen by many as positive signs for the future.
What are your thoughts on the surge in Bitcoin futures open interest? Share your opinions in the comments section below.
Frequently Asked Questions
Who is entitled to the gold in a IRA that holds gold?
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
A financial planner or accountant should be consulted to discuss your options.
How much of your portfolio should be in precious metals?
To answer this question, we must first understand what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them valuable in investment and trading. Gold is by far the most common precious metal traded today.
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.
In general, all precious metals have a tendency to go up with the market. However, the prices of precious metals do not always move in sync with one another. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors favor safe assets like Treasury Bonds, and less precious metals. Because they are rare, they become more pricey and lose value.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. An IRA is a good choice for those who want a way to save some money but don’t want the tax. However, there are disadvantages to this type investment.
You could lose all of your accumulated money if you take out too much from 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 withdraw funds from your IRA you will most likely be required to pay a penalty.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
Insurance is necessary if you wish to keep your money safe from the banks. Most insurers require you to own a minimum amount of gold before making a claim. Insurance that covers losses upto $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit how many ounces you can keep. Others allow you the freedom to choose your own weight.
You will also have to decide whether to purchase futures or physical gold. Physical gold is more costly than gold futures. Futures contracts offer flexibility for buying gold. They let you set up a contract that has a specific expiration.
You also need to decide the type and level of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does include coverage for damage due to 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. For safekeeping, banks typically charge $25-40 per month.
To open a IRA in gold, you will need to first speak with a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians aren't allowed to sell your assets. They must instead keep them for as long as you ask.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Also, you should specify how much each month you plan to invest.
After completing the forms, send them along with a check or a small deposit to your chosen provider. After receiving your application, the company will review it and mail you a confirmation letter.
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.
What is the cost of gold IRA fees
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes account maintenance and any investment costs.
Diversifying your portfolio may require you to pay additional fees. The type of IRA you choose will determine the fees. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Many providers also charge annual management fees. These fees can range from 0% up to 1%. The average rate is.25% each year. These rates are usually waived if you use a broker such as TD Ameritrade.
What is the best precious-metal to invest?
This depends on what risk you are willing take and what kind of return you desire. Although gold has been considered a safe investment, it is not always the most lucrative. If you are looking for quick profits, gold might not be the right investment. Silver is a better investment if you have patience and the time to do it.
If you don’t want to be rich fast, gold might be the right choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
How much of your IRA should include precious metals?
You should remember that precious metals are not only for the wealthy. You don't have to be rich to invest in them. You can actually make money without spending a lot on gold or silver investments.
You might also be interested in buying physical coins, such bullion rounds or bars. It is possible to also purchase shares in companies that make precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
You will still reap the benefits of owning precious metals, regardless of which option you choose. They are not stocks but offer long-term growth.
And unlike traditional investments, they tend to increase in value over time. If you decide to sell your investment, you will likely make more than with traditional investments.
What precious metals could you invest in to retire?
Gold and silver are the best precious metal investments. They are both simple to purchase and sell, and they have been around for a long time. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: This is the oldest form of currency that man has ever known. It is very stable and secure. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Silver is a popular investment choice. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinum: This precious metal is also becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. It's however much more costly than any of its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It is also used in jewelry-making. It is also quite affordable compared with other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It is also cheaper. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
- 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)
- 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)
- 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)
- (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)
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads and Example. Risk Metrics
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
How to Keep Physical Gold in an IRA
The best way of investing in gold is to purchase shares from companies that produce gold. But this investment method has many risks as there is no guarantee of survival. There is always the chance of them losing their money due to fluctuations of the gold price.
Alternative options include buying physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's also easier to see how much gold you've got stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You also have a lower chance of theft than stocks.
There are however some disadvantages. You won't get the bank's interest rates or investment money. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, the taxman may ask you about where you have put your gold.
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
By: Jamie Redman
Title: Bitcoin Futures Open Interest Soars as Market Enthusiasm and ETF Anticipation Rise
Sourced From: news.bitcoin.com/bitcoin-futures-open-interest-skyrockets-amid-rising-market-enthusiasm-and-etf-anticipation/
Published Date: Tue, 24 Oct 2023 18:30:11 +0000
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