Bitcoin Soars Past $45K as Market Eyes ETF Approval, Setting Stage for April’s Halving

Crypto Economy Climbs to $1.74 Trillion; Bitcoin Hits $45K in ETF Speculation and Pre-Halving Optimism

The digital currency market has surged to a valuation of $1.74 trillion in the past 24 hours, with bitcoin climbing above the $45K threshold. Over the recent day, the market experienced a 4.65% increase in comparison to the U.S. dollar, and global trading volume saw a substantial 20% rise from Monday.

Fueled by the anticipation of a potential approval for a spot bitcoin exchange-traded fund (ETF) this week, the crypto sector has seen a 4.65% growth in the last 24 hours. Bitcoin achieved a peak of $45,922 during the day but has since receded to the vicinity of the $45,500 range after reaching that peak. The entire lot of top ten crypto assets have witnessed gains with solana (SOL) leading the pack by more than 8%.

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Bitcoin has risen 6.4% while ethereum (ETH) spiked 4% higher on Tuesday at 8 a.m. Eastern Time (ET). Bitcoin’s market valuation dominates the market by 50.8%, while ether’s market cap accounts for 16.5% of the $1.74 trillion crypto economy. Bitcoin’s rise above the $45K range caused a tidal wave of nearly $84 million in short liquidations according to coinglass.com statistics.

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Ethereum shorts saw $25.96 million wiped out and solana (SOL) short positions witnessed $10 million erased. Tuesday’s jump further saw double-digit gains from sei (SEI), astar (ASTR), and ordi (ORDI) recording gains between 15% to 22% over the past day. All three are also up between 24% to 55% against the greenback over the past seven days.

The three biggest losers today, despite the broad market rise, were bitcoinsv (BSV), helium (HNT), and maker (MKR) shedding between 2.8% to 6.3%. As the market awaits the anticipated approval of a spot bitcoin ETF in the United States, optimism fuels the recent market surge. With bitcoin breaching the $45K mark, the upcoming halving in April looms, promising to bolster its value further. This event, coupled with regulatory and technological advancements, paints a bullish picture for crypto’s future.

What are your thoughts on the crypto economy’s market action this week? Share your opinions in the comments section below.

Frequently Asked Questions

How much tax is gold subject to in an IRA

The fair market value at the time of sale is what determines how much tax you pay on gold sales. You don't pay taxes when you buy gold. It's not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.

For loans, gold can be used to collateral. Lenders look for the highest return when you borrow against assets. In the case of gold, this usually means selling it. The lender might not do this. They may hold on to it. Or they might decide to resell it themselves. In either case, you risk losing potential profits.

To avoid losing money, only lend against gold if you intend to use it for collateral. It is better to leave it alone.

Should You Invest in gold for Retirement?

The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you are unsure of which option to invest in, consider both.

Not only is it a safe investment but gold can also provide potential returns. It's a great investment for retirees.

Although most investments promise a fixed rate of return, gold is more volatile than others. Its value fluctuates over time.

However, this does not mean that gold should be avoided. It is important to consider the fluctuations when planning your portfolio.

Another advantage of gold is its tangible nature. Unlike stocks and bonds, gold is easier to store. It can also be transported.

As long as you keep your gold in a secure location, you can always access it. There are no storage charges for holding physical gold.

Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.

Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when the stock market falls.

Another benefit to investing in gold? You can always sell it. Just like stocks, you can liquidate your position whenever you need cash. You don't even have to wait until you retire.

If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.

Do not buy too much at one time. Start small, buying only a few ounces. Next, add more as required.

Remember, the goal here isn't to get rich quickly. It is to create enough wealth that you no longer have to depend on Social Security.

Even though gold is not the best investment, it could be an excellent addition to any retirement plan.

How much of your IRA should include precious metals?

The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't have to be rich to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.

You may consider buying physical coins such as bullion bars or rounds. Shares in precious metals-producing companies could be an option. Your retirement plan provider may offer an IRA rollingover program.

You will still reap the benefits of owning precious metals, regardless of which option you choose. They offer the potential for long-term, sustainable growth even though they aren’t stocks.

Their prices are more volatile than traditional investments. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.

What is the value of a gold IRA

A gold IRA has many benefits. It's an investment vehicle that allows you to diversify your portfolio. You control how much money goes into each account and when it's withdrawn.

You also have the option to transfer funds from other retirement plans into a IRA. This will allow you to transition easily if it is your decision to retire early.

The best thing about investing in gold IRAs is that you don’t need any special skills. They're readily available at almost all banks and brokerage firms. Withdrawals can be made instantly without the need to pay fees or penalties.

There are, however, some drawbacks. Gold is known for being volatile in the past. It's important to understand the reasons you're considering investing in gold. Do you want safety or growth? Is it for insurance purposes or a long-term strategy? Only when you are clear about the facts will you be able take an informed decision.

You might want to buy more gold if you intend to keep your gold IRA for a long time. One ounce won't be enough to meet all your needs. Depending on your plans for using your gold, you may need multiple ounces.

A small amount is sufficient if you plan to sell your gold. You can even get by with less than one ounce. However, you will not be able buy any other items with those funds.

Statistics

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)
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)
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)

External Links

How To

The History of Gold as an Asset

From the very beginning of time, gold was a currency. It was widely accepted around the world and enjoyed its purity, divisibility and uniformity. Because of its intrinsic value, it was also widely traded. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.

In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. The result was a decrease in foreign currency demand, which led to an increase in their price. The United States began minting large quantities gold coins at this time, which led to a drop in the price. The U.S. government needed to find a solution to their debt because there was too much money in circulation. They sold some of their excess gold to Europe to pay off the debt.

Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold has risen significantly since then. Even though the price of gold fluctuates, it remains one the best investments you can make.

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By: Jamie Redman
Title: Bitcoin Soars Past $45K as Market Eyes ETF Approval, Setting Stage for April’s Halving
Sourced From: news.bitcoin.com/bitcoin-soars-past-45k-as-market-eyes-etf-approval-setting-stage-for-aprils-halving/
Published Date: Tue, 02 Jan 2024 14:30:46 +0000