Hey there, crypto enthusiasts! Imagine waking up to the news of Bitcoin climbing above $124,000 after flirting with the mid-$120,000 range in the past 24 hours. The excitement in the air is palpable!
Bitcoin’s Rollercoaster Ride
The Dollar Dilemma
Bitcoin recently made headlines by soaring past $126,000, triggering a frenzy among investors. However, a stronger U.S. dollar caused a slight pullback, challenging the "debasement-trade" trend. As of now, Bitcoin is holding steady at $123,962.
The Rise of Bitcoin ETFs
Investors are increasingly turning to Bitcoin as a shield against potential dollar devaluation, engaging in what traders call "debasement trades." The recent surge was fueled by significant investments in Bitcoin exchange-traded funds (ETFs) and speculative plays on weakening fiat currencies during the extended U.S. government shutdown.
- BlackRock’s IBIT topped the charts with $3.5 billion in inflows, representing 10% of total ETF net flows.
- All 11 original Bitcoin spot ETFs experienced increased demand, signaling a strong appetite for Bitcoin ETFs.
- IBIT, launched just 21 months ago, is on track to hit $100 billion in assets under management, outshining even decades-old products in profitability.
The Bitcoin Outlook
Will Bitcoin continue its ascent? Analysts view the recent price correction to around $122,000 as a healthy consolidation phase that could pave the way for further growth.
Market sentiment remains positive, with support near $120,000 and resistance at approximately $135,000. As the saying goes, "buy the dips!"
Onchain data reveals a surge in buying activity, with Bitcoin’s relative strength index climbing from 44 to 66 in the past week, indicating increasing market confidence.
What Lies Ahead for Bitcoin?
Market Predictions
The ongoing U.S. fiscal standoff is driving demand for safe-haven assets, potentially propelling Bitcoin to $135,000 in the near term. Geoffrey Kendrick of Standard Chartered suggests that if current market conditions persist, Bitcoin could even hit $200,000 by year-end.
While gold continues its upward trajectory, supported by central bank purchases and expectations of future Fed measures, short-term Bitcoin whales are reaping substantial gains. Entities holding over 1,000 BTC acquired in the past five months are currently sitting on approximately $10.1 billion in unrealized profits, as per CryptoQuant data.
Exciting times lie ahead for the world of cryptocurrency! With Bitcoin's price rally and the evolving market dynamics, staying informed and making strategic moves is key to navigating this exhilarating landscape.
Frequently Asked Questions
How much of your portfolio should be in precious metals?
To answer this question we need to first define precious metals. Precious elements are those elements which have a high price relative to other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
However, many other types of precious metals exist, including silver and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also relatively unaffected both by inflation and 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.
However, when an economy is strong, the reverse effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. Because they are rare, they become more pricey and lose value.
You must therefore diversify your investments in precious metals to reap the maximum profits. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
How much money should my Roth IRA be funded?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts cannot be withdrawn until you turn 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the original deposit amount) cannot be touched. You cannot withdraw more than the original amount you contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. Withdrawing your earnings will result in you paying taxes. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 That leaves you with only $6,500 left. The amount you can withdraw is limited to the original contribution.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow for pre-tax deductions from your taxable earnings. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. You can withdraw as much as you want from a traditional IRA.
Roth IRAs don't allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
Can I hold a gold ETF in a Roth IRA?
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
A traditional IRA allows contributions from both employee and employer. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
You can also get an Individual Retirement Annuity, or IRA. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- 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)
External Links
irs.gov
investopedia.com
bbb.org
finance.yahoo.com
How To
The best place to buy silver or gold online
To buy gold, you must first understand how it works. Gold is a precious metallic similar to Platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They are not exchangeable in any currency exchange system. For example, a person who buys $100 worth or gold gets 100 grams. This gold has a $100 price. The buyer receives 1 gram of gold for every dollar spent.
You should also know where to buy your gold. There are many options for buying gold directly from dealers. First, you can visit your local coin store. You could also look into eBay or other reputable websites. You might also consider buying gold from an online private seller.
Individuals who sell gold at wholesale and retail prices are called private sellers. Private sellers typically charge 10% to 15% commission on each transaction. You would receive less money from a private buyer than you would from a coin store or eBay. This option can be a good choice for investing in gold because it allows you to control the price.
The other option is to purchase physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
When buying gold on your own, you can visit a bank or a pawnshop. A bank can give you a loan up to the amount you intend to invest in Gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks tend to charge higher interest rates, while pawnshops are typically lower.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold can also be done easily. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
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By: Micah Zimmerman
Title: Bitcoin Price Rally: Reaching $124,000 Amid ETFs Surge and Dollar Concerns
Sourced From: bitcoinmagazine.com/markets/bitcoin-price-surges-to-124000-as-etfs-surge-and-investors-eye-dollar-weakness
Published Date: Wed, 08 Oct 2025 17:28:14 +0000
