Introduction
In the ever-changing world of crypto markets, recent trends have revealed fascinating divergences in the altcoin market. Notably, Ethereum and Solana have emerged as leading performers, surpassing Bitcoin in terms of growth and market activity. A comprehensive report published by Glassnode, an onchain analytics firm, sheds light on this phenomenon and its implications.
Ethereum's Standout Performance
In Glassnode's latest edition of "The Week Onchain," Alice Kohn's research highlights Ethereum's remarkable performance. The report, published on January 23, 2024, showcases a notable surge in derivatives market activity and the impressive journey of Solana (SOL) following the approval of a Bitcoin exchange-traded fund (ETF). Ethereum has recently outshone Bitcoin, recording its strongest performance since late 2022. Kohn's report notes a surge of over 20% in Ethereum's value relative to Bitcoin, coinciding with a revitalized interest in Ethereum's derivatives market.
Solana's Exceptional Growth
While Ethereum has shown promising growth, it still lags behind the broader altcoin market in terms of momentum, underperforming by 17%. In contrast, Solana has charted a different course. Glassnode's report details SOL's exceptional price performance, despite setbacks linked to its association with FTX. Since October 2023, SOL has significantly outperformed ETH, with the SOL/BTC ratio increasing by 290%. Interestingly, unlike Ethereum, Solana's price did not experience a significant revaluation following the BTC ETF approvals, indicating a divergent market response to broader sector movements.
The Rise of Altcoin Season
On January 14, 2024, Bitcoin.com News highlighted blockchaincenter.net's Altcoin Season Index, signaling the commencement of altseason. The index continues to declare it is "altcoin season," with the leading 50 coins outperforming BTC in the previous season (90 days). Glassnode's Kohn emphasizes that this trend is primarily driven by tokens related to Ethereum scaling solutions such as Optimism, Arbitrum, and Polygon. Staking and Gamefi tokens have also outperformed BTC, indicating a varied appetite for risk across different altcoin sectors.
Implications and Speculative Activities
Glassnode's research underscores the significance of these developments. The approval of new Bitcoin ETFs has become a sell-the-news event, leading to a tumultuous few weeks in the market. Ethereum has emerged as the short-term winner, with investors recording a multi-year high in net realized profits. This suggests a growing willingness to engage in speculative activities, particularly concerning an ETH ETF and capital rotation.
What are your thoughts on Glassnode's report regarding the altered dynamics of altcoins in the crypto market? Share your opinions in the comments section below.
Frequently Asked Questions
How much should your IRA include precious metals
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. It doesn't matter how rich you are to invest in precious metals. In fact, there are many ways to make money from gold and silver investments without spending much money.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. You could also buy shares in companies that produce precious metals. You may also be interested in an IRA transfer program offered by your retirement provider.
Regardless of your choice, you'll still benefit from owning precious metals. Although they aren’t stocks, they offer the possibility for long-term gains.
And, unlike traditional investments, their prices tend to rise over time. So, if you decide to sell your investment down the road, you'll likely see more profit than you would with traditional investments.
Can I buy or sell gold from my self-directed IRA
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts are financial instruments that are based on gold's price. They let you speculate on future price without having to own the metal. You can only hold physical bullion, which is real silver and gold bars.
Do you need to open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. There is no way to recover money that you have invested in precious metals. This includes investments that have been damaged by fire, flooding, theft, and so on.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items are timeless and have a lifetime value. If you were to sell them today, you would likely receive more than what you paid for them when they were first minted.
Consider a reputable business that offers low rates and good products when opening an IRA. A third-party custodian is a good option. They will protect your assets while giving you easy access whenever you need them.
You won't get any returns until you retire if you open an account. Keep your eyes open for the future.
Should You Buy Gold?
Gold was once considered an investment safe haven during times of economic crisis. However, today many people are turning away from traditional investments such as stocks and bonds and instead looking toward precious metals such as gold.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Experts think this could change quickly. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
Here are some things to consider if you're considering investing in gold.
- Before you start saving money for retirement, think about whether you really need it. You can save for retirement and not invest your savings in gold. The added protection that gold provides when you retire is a good option.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offers varying levels of flexibility and security.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. It is possible to lose your gold coins.
Do your research before you buy gold. And if you already own gold, ensure you're doing everything possible to protect it.
Can I have physical gold in my IRA
Not just paper money or coins, gold is money. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Many Americans now invest in precious metals. It's not guaranteed that you'll make any money investing gold, but there are several reasons it might be worthwhile to add gold to retirement funds.
Another reason is that gold has historically outperformed other assets in financial panic periods. The S&P 500 dropped 21 percent in the same time period, while gold prices rose by nearly 100 percent between August 2011-early 2013. During turbulent market conditions gold was one of few assets that outperformed stock prices.
The best thing about gold investing is the fact that there's virtually no counterparty risk. Your shares will still be yours even if your stock portfolio drops. Gold can be worth more than its investment in a company that defaults on its obligations.
Finally, the liquidity that gold provides is unmatched. This means that, unlike most other investments, you can sell your gold anytime without worrying about finding another buyer. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you to profit from short-term fluctuations on the gold market.
What proportion of your portfolio should you have in precious metals
To answer this question we need to first define precious metals. Precious Metals are elements that have a very high relative value to other commodities. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is also relatively unaffected both by inflation and deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, they may not always move in synchrony with each other. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. This is because investors 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. They become less expensive and have a lower value because they are limited.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
What precious metals do you have that you can invest in for your retirement?
It is gold and silver that are the best precious metal investment. Both are easy to sell and can be bought easily. You should add them to your portfolio if you are looking to diversify.
Gold: The oldest form of currency known to man is gold. It's stable and safe. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. It's a great option for those who want stability. Unlike gold, silver tends to go up instead of down.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's like silver or gold in that it is durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium – Rhodium is used to make catalytic conversions. It is also used as a jewelry material. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium is similar to platinum, but it's less rare. It's also more accessible. It's a popular choice for investors who want to add precious metals into their portfolios.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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 take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (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)
External Links
finance.yahoo.com
forbes.com
bbb.org
cftc.gov
How To
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. It was also traded internationally due to its high value. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. 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.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This led to a decline in demand for foreign currencies, which caused their price to increase. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. They needed to pay off debt because they had too much money coming into circulation. They sold some of their excess gold to Europe to pay off the debt.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. 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: Ethereum and Solana Outperform Bitcoin in Altered Altcoin Dynamics
Sourced From: news.bitcoin.com/report-ethereum-and-solana-showcase-unique-market-dynamics-in-recent-altcoin-trends/
Published Date: Tue, 23 Jan 2024 22:30:19 +0000
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