Bitcoin Soars Above $47K on Speculation of U.S. Bitcoin ETF Approval

Bitcoin Surges on Potential U.S. Bitcoin ETF Launch

Bitcoin broke through the $47K mark on Monday, driven by increasing anticipation surrounding the possible introduction of a U.S. spot bitcoin exchange-traded fund (ETF). The leading cryptocurrency started the day at $43,247 per unit and reached a peak of $47,281 by 2:10 p.m. Eastern Time (ET).

Market Cap of Bitcoin Hits New High

During Monday afternoon, there was a significant surge in the market capitalization of the top cryptocurrency, occurring around 2 p.m. ET. Bitcoin (BTC) experienced a surge of over $3,600 from its lowest point of the day, with many analysts attributing this upward movement to the potential approval of multiple spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). Recent market data shows that bitcoin last reached this price range in December 2021 after its drop from the record high of $69K.

Bitcoin's Market Value and Trading Volume

The market valuation of bitcoin soared to $917 billion, surpassing Meta (formerly Facebook) in terms of market size and solidifying its position as the ninth-largest asset by market valuation. BTC's trading volume has also increased, contributing $37.17 billion to the total daily trade volume of $144 billion. As of 3:10 p.m. ET, bitcoin's market value stands at $46,922, which is just over 32% below its all-time high of $69K achieved on November 10, 2021.

Impact on Short Trading Positions and the Crypto Market

This surge in price has resulted in the liquidation of numerous short trading positions. According to Coinglass's four-hour data, approximately $73.62 million in BTC shorts were liquidated, with around $13.75 million occurring after the price surpassed the $47K mark. The rise in bitcoin's price has also lifted other cryptocurrencies, pushing the overall crypto market capitalization to $1.80 trillion. Bitcoin dominates this figure with a 50.8% market share, while ethereum (ETH) holds a 15.6% stake in the combined market.

What are your thoughts on bitcoin's value surge on Monday afternoon? Feel free to share your opinions in the comments section below.

Frequently Asked Questions

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.

You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.

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.

It is a good idea to consult an accountant or financial planner to learn more about your options.

How does a gold IRA work?

The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.

Physical gold bullion coin can be purchased at any time. You don't have a retirement date to invest in gold.

Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold assets will not be subjected tax upon your death.

Your heirs inherit your gold without paying capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.

You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as a mediator between you, the IRS.

Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.

Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit is $1,000 If you make more, however, you will get a higher interest rate.

You will pay taxes when you withdraw your gold from your IRA. You will be liable for income taxes and penalties if you take the entire amount.

A small percentage may mean that you don't have to pay 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 shouldn't take out more then 50% of your total IRA assets annually. You'll be facing severe financial consequences if you do.

How is gold taxed in an IRA?

The fair market value at the time of sale is what determines how much tax you pay on gold sales. Gold is not subject to tax when it's purchased. It isn't considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.

For loans, gold can be used to collateral. Lenders try to maximize the return on loans that you take against your assets. This often means selling gold. The lender might not do this. They may just keep it. They might decide to sell it. Either way, you lose potential profit.

If you plan on using your gold as collateral, then you shouldn't lend against it. It is better to leave it alone.


  • Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (
  • 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. (
  • 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. (
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (
  • (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.) (

External Links

How To

Investing with gold or stocks

This might make it seem very risky to invest gold as an investment tool. This is because many people believe that gold investment is no longer profitable. This belief is due to the fact that many people see gold prices dropping because of the global economy. They fear that investing in gold will result in a loss of money. In reality, however there are still many significant benefits to gold investing. Here are some examples.

One of the oldest forms known of currency is gold. It has been used for thousands of years. It is a valuable store of value that has been used by many people throughout the world. As a means of payment, South Africa and many other countries still rely on it.

When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. You can always ask a local jeweler what the current market rate is if you don't have it.

Noting that gold prices have fallen in recent years, it is worth noting that the cost to produce gold has gone up. The price of gold may have fallen, but the production costs haven’t.

It is important to keep in mind the amount you plan to purchase of gold when you're weighing whether or not it is worth your time. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. But, if your goal is to make long-term investments in gold, this might be worth considering. It is possible to make a profit by selling your gold at higher prices than when you purchased it.

We hope you have gained a better understanding about gold as an investment tool. We strongly recommend that you research all available options before making any decisions. Only then can informed decisions be made.

By: Jamie Redman
Title: Bitcoin Soars Above $47K on Speculation of U.S. Bitcoin ETF Approval
Sourced From:
Published Date: Mon, 08 Jan 2024 20:26:13 +0000

Recent Posts
Latest Featured Posts
Latest News Posts