On October 24, 2023, bitcoin (BTC) witnessed an impressive 13% surge during the early morning trading hours, Eastern Time (ET). This surge propelled bitcoin's value to $35,108 per unit, resulting in a significant boost for the entire cryptocurrency market, which surged by over 10%. As the market soared, traders who had bet against crypto assets like bitcoin and ethereum found themselves in a challenging predicament. Within a mere 24 hours, an astonishing $323 million in crypto short positions vanished.
24-Hour Rally: Crypto Economy's Rise Liquidates $427 Million in Short and Long Stakes
Currently, the cryptocurrency market is valued at an impressive $1.3 trillion, marking a 10% increase. Within the past day, BTC's value witnessed a remarkable 13% ascent. Other major players in the market also experienced substantial gains: ETH surged by 9%, BNB ascended by 5%, and both XRP and Solana recorded a 7% hike.
These rapid price escalations have left those who bet against top cryptocurrencies in a state of frenzy, as their positions vanished amidst these impressive and swift rallies. Recent data from Coinglass reveals that within the last 12 hours, the market witnessed the liquidation of $51.91 million in long positions and a substantial $103 million in short positions.
Breaking down the 24-hour statistics, short positions worth $323 million were obliterated, and an additional $104 million in long positions faced a similar fate. Notably, bitcoin contracts accounted for a significant portion of the total shorts liquidated, amounting to $232 million out of the $323 million total.
Meanwhile, ethereum (ETH) witnessed the liquidation of over $64 million in shorts. Solana (SOL) shorts amounted to approximately $11.4 million. Additionally, shorts from various alternative crypto tokens totaled around $21.83 million.
Coinglass data also highlights a surge in trading volume, reaching $203 billion in the past 24 hours, signifying a 143% increase from the previous day. The open interest now stands at nearly $29.73 billion, up 4.55%. In total, the last day witnessed crypto liquidations amounting to a staggering $429.46 million across both long and short positions.
What are your thoughts on the eradication of speculative bets within the past 24 hours? Share your opinions and insights on this matter in the comments section below.
Frequently Asked Questions
Is physical gold allowed in an IRA.
Not only is gold paper currency, but it's also money. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. Between August 2011 and early 2013 gold prices soared nearly 100 percent, while the S&P 500 plunged 21 percent. During these turbulent market times, gold was among few assets that outperformed the stocks.
Another benefit to investing in gold? It has virtually zero counterparty exposure. Your stock portfolio can fall, but you will still own your shares. You can still own your gold even if the company where you invested fails to pay its debt.
Finally, gold is liquid. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows one to take advantage short-term fluctuations within the gold price.
How much should I contribute to my Roth IRA account?
Roth IRAs can be used to save taxes on your retirement funds. The account cannot be withdrawn from until you are 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. You cannot touch your principal (the amount you originally deposited). This means that no matter how much you contribute, you can never take out more than what was initially contributed to this account. If you take out more than the initial contribution, you must pay tax.
The second rule is that you cannot withdraw your earnings without paying income taxes. Withdrawing your earnings will result in you paying taxes. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's further assume you earn $10,000 annually after contributing. The federal income tax on your earnings would amount to $3,500. So you would only have $6,500 left. You can only take out what you originally contributed.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. You would also lose half of your earnings because they are subject to another 50% tax (half off 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types if Roth IRAs: Roth and Traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. You can withdraw your contributions plus interest from your traditional IRA when you retire. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
What are the fees associated with an IRA for gold?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes account maintenance fees and investment costs for your chosen investments.
You may have to pay additional fees if you want to diversify your portfolio. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking, but charge monthly fees for IRAs.
In addition, most providers charge annual management fees. These fees range between 0% and 1 percent. The average rate is.25% each year. However, these rates are typically waived if you use a broker like TD Ameritrade.
What does a gold IRA look like?
People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.
You can purchase physical gold bullion coins anytime. To start investing in gold, it doesn't matter if you are retired.
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 can inherit your gold and avoid capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. After you do this, you will be granted an IRA custodian. This company acts like a middleman between the IRS and you.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual returns.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit is $1,000. You'll get a higher rate of interest if you deposit more.
Taxes will apply to gold that you take out of an IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
However, if you only take out a small percentage, you may not have to pay taxes. There are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
It is best to not take out more than 50% annually of your total IRA assets. You could end up with severe financial consequences.
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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
External Links
finance.yahoo.com
investopedia.com
irs.gov
cftc.gov
How To
The History of Gold as an Asset
From the very beginning of time, gold was a currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. Due to its value, it was also internationally traded. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. This caused a drop in foreign currency demand which resulted in an increase of their prices. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. To do so, they decided to sell some of the excess gold back to Europe.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. The gold price has gone up significantly in the years since. Even though the price fluctuates, gold is still one of best investments.
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By: Jamie Redman
Title: Bitcoin‘s Soaring Surge to $35,000 Wipes Out $232 Million in Short Positions in Just 24 Hours
Sourced From: news.bitcoin.com/bitcoins-meteoric-rise-to-35000-erases-232m-in-short-positions-in-just-24-hours/
Published Date: Tue, 24 Oct 2023 16:30:13 +0000
