Galaxy Digital CEO Mike Novogratz is optimistic about the future price of bitcoin, stating that it will experience a substantial increase once the U.S. Securities and Exchange Commission (SEC) approves spot bitcoin exchange-traded funds (ETFs). In an interview on Bloomberg TV, Novogratz explained that the approval of the first U.S. spot bitcoin ETF has the potential to drive the price of bitcoin significantly higher.
Anticipation for Spot Bitcoin ETFs
Novogratz highlighted the positive developments in the bitcoin market, including the anticipation of a spot bitcoin ETF. He mentioned that this anticipation is already factored into the current price of bitcoin. Once the SEC announces the approval of a spot bitcoin ETF, Novogratz believes that major financial institutions such as Blackrock, Ark, Fidelity, and Galaxy Digital will actively promote bitcoin adoption.
Novogratz emphasized that the price of bitcoin will experience a significant increase, especially if the Federal Reserve decides to cut interest rates. He expressed his belief that bitcoin could reach its previous all-time highs within the next year.
Factors Driving Bitcoin's Price Increase
Novogratz explained that the limited supply of bitcoin and the upcoming halving event, where the daily supply of new bitcoins is reduced by half, will contribute to the price increase. He also mentioned the political uncertainty surrounding the upcoming election year and the fiscal irresponsibility of countries like the U.S., Europe, and Japan as factors that will further drive the demand for bitcoin.
Impact of Spot Bitcoin ETF Approval
Novogratz predicted that the approval of spot bitcoin ETFs will attract billions of dollars into the ETF market, as investors and institutions gain confidence in bitcoin. He emphasized that this influx of new money will lead to a significant shift in market psychology, as more people are allowed to invest in bitcoin and institutions endorse its potential.
Currently, the SEC is reviewing several spot bitcoin ETF applications, with Chairman Gary Gensler considering between eight and ten applications. It is expected that the SEC will approve multiple spot bitcoin ETFs simultaneously in the early months of the following year.
What are your thoughts on Mike Novogratz's prediction? Share your opinion in the comments section below.
Frequently Asked Questions
What is the best way to hold physical gold?
Gold is money, not just paper currency or coinage. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. 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. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one asset that outperformed stocks in turbulent market conditions.
Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. 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 offers liquidity. This allows you to sell your gold whenever you want, unlike many other investments. It makes sense to buy small quantities of gold, as it is more liquid than other investments. This allows you to profit from short-term fluctuations on the gold market.
How much of your portfolio should you hold in precious metals
To answer this question we need to first define precious metals. Precious metals have elements with an extremely high worth relative to other commodity. This makes them highly valuable for both investment and trading. Gold is today the most popular precious metal.
There are many other precious metals, such as silver and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also not affected by inflation and depression.
In general, all precious metals have a tendency to go up with the market. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors expect lower interest rates which makes bonds less appealing investments.
However, when an economy is strong, the reverse effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. These precious metals are rare and become more costly.
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 are the fees for an IRA that holds gold?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance and any investment costs.
If you want to diversify, you may be required to pay extra fees. These fees vary depending on what type of IRA you choose. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
Most providers also charge annual management costs. These fees range from 0% to 1%. The average rate is.25% per year. These rates can be waived if the broker is TD Ameritrade.
Is gold buying a good retirement option?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
Physical bullion bar is the best way to invest in precious metals. However, there are many other ways to invest in gold. You should research all options thoroughly before making a decision on which option you prefer.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren't looking for a safe place to store your wealth. If you require cash flow, gold stocks can work well.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
cftc.gov
bbb.org
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Investing gold vs. stocks
These days, it might seem quite risky to invest your money in gold. Many people believe that investing in gold is not profitable. This belief is due to the fact that many people see gold prices dropping because of the global economy. They think that they would lose money if they invested in gold. There are many benefits to investing in gold. We'll be looking at some of these benefits below.
One of the oldest forms known of currency is gold. There are thousands of records that show gold was used over the years. People around the world have used it as a store of value. It's still used by countries like South Africa as a method of payment.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. 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. Although gold's price has fallen, its production costs have not.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. 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. Selling your gold at a higher value than what you bought can help you make money.
We hope this article has given you an improved understanding of gold investment tools. We recommend that you investigate all options before making any major decisions. Only then can informed decisions be made.
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By: Kevin Helms
Title: Galaxy Digital CEO Predicts Significant Bitcoin Price Increase with Approval of Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/novogratz-expects-bitcoin-price-to-be-significantly-higher-after-sec-approves-spot-bitcoin-etfs/
Published Date: Sat, 02 Dec 2023 03:00:31 +0000
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