Insights on Bitcoin's Future Trajectory
In a recent interview with Gareth Soloway, the chief market strategist at verifiedinvesting.com, Soloway shared his thoughts on bitcoin's latest trends and its potential future trajectory. He discussed his approach to analyzing various data sets and drawing conclusions, highlighting the alignment of the 2017 and 2021 bitcoin bull markets with significant events.
The Impact of Big News Stories
According to Soloway, significant news stories create a lot of hype and can mark the top in bitcoin. He mentioned the introduction of regulated bitcoin futures in 2017 and the Coinbase initial public offering (IPO) in 2021 as examples of such events.
Concerns about BTC's Price Level
Soloway expressed his concern about the current bitcoin price level and its recent downturn following specific developments. He pointed out the outflows from GBTC and the substantial discount at which it was trading, stating that it could be an extra bonus for smart money. However, his greater concern is a bearish view on BTC that could occur if there is a peak in the S&P market or a de-risking occurrence in the broader markets.
Predicting a Potential Dip to $15K
Soloway stated that if there is a 50% drop in the stock market, he sees bitcoin retesting the $15,000 level. He backed his prediction by mentioning a survey by Deutsche Bank, where a third of respondents anticipated BTC's value falling below $20K. Additionally, former Bitmex boss Arthur Hayes predicts BTC could hit lows of $30K to $35K.
Despite the bleak projections, Soloway remains optimistic about bitcoin in the long term. He expressed his intention to increase his BTC holdings if prices continue to decline. He previously predicted the approval of spot bitcoin ETFs in early 2024, showing his ability to make accurate predictions.
Soloway is closely monitoring the developments in the market and believes the upcoming three-plus weeks are critical to observe. It remains to be seen if his predictions regarding an equities sell-off and BTC potentially reaching the $15K mark this year will materialize. As of Sunday, Jan. 28, 2024, BTC is maintaining its position above $42K, currently undergoing a phase of consolidation.
What are your thoughts on Gareth Soloway's bitcoin prediction? Let us know in the comments section below.
Frequently Asked Questions
What is a gold IRA account?
Physical gold bullion coin can be purchased at any time. To invest in gold, you don't need to wait for retirement.
Owning gold as an IRA has the advantage of allowing you to keep it forever. When you die, your gold assets won't be subjected to taxes.
Your heirs inherit your gold without paying capital gains taxes. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done that, you'll receive an IRA custody. This company acts like a middleman between the IRS and you.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reporting.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit is $1,000. The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
When you withdraw your gold from your IRA, you'll pay taxes on it. You will be liable for income taxes and penalties if you take the entire amount.
However, if you only take out a small percentage, you may not have to pay taxes. However, there are exceptions. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. You could end up with severe financial consequences.
How can you withdraw from an IRA of Precious Metals?
You first need to decide if you want to withdraw money from an IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
An IRA is not the best option if you don't mind paying a penalty for early withdrawal. Instead, open a taxable brokerage. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. While traditional IRAs are tax-free, Roth IRAs can be withdrawn at any time after you reach 59 1/2. However, Roth IRAs will charge income taxes upfront and allow you to access your earnings later without additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. You will need to weigh each one before making a decision.
Bullion bars, for example, require less space as you're not dealing with individual coins. But you will have to count each coin separately. However, you can easily track the value of individual coins by storing them in separate containers.
Some people prefer to keep their coins in a vault. Others prefer to store them in a safe deposit box. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
What are the benefits of a gold IRA
There are many benefits to a gold IRA. It's an investment vehicle that lets you diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
You have the option of rolling over funds from other retirement account into a gold IRA. If you are planning to retire early, this makes it easy to transition.
The best thing is that investing in gold IRAs doesn't require any special skills. They are offered by most banks and brokerage companies. Withdrawals can happen automatically, without any fees or penalties.
That said, there are drawbacks too. Gold has always been volatile. It is important to understand why you are investing in gold. Are you looking for growth or safety? Are you trying to find safety or growth? Only once you know, that will you be able to make an informed decision.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
You don't need to have a lot of gold if you are selling it. You can even manage with one ounce. But, those funds will not allow you to buy anything.
Is gold buying a good retirement option?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
Physical bullion bar is the best way to invest in precious metals. However, there are many other ways to invest in gold. The best thing to do is research all options thoroughly and then make an informed decision based on what you want from your investments.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you require cash flow, gold stocks can work well.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs usually include stocks of precious metals refiners or gold miners.
What are some of the benefits of a gold IRA
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You have total control over how much each year you take out. There are many types of IRAs. Some are better for those who want to save money for college. Others are made for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. But once they start withdrawing funds, those earnings aren't taxed again. This account may be worth considering if you are looking to retire earlier.
Because it allows you money to be invested in multiple asset classes, a ‘gold IRA' is similar to any other IRAs. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. For people who would rather invest than spend their money, gold IRA accounts are a good option.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. You won't have the hassle of making deposits each month. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold is one of the safest investment choices available today. It is not tied to any country so its value tends stay steady. Even in times of economic turmoil gold prices tend to remain stable. As a result, it's often considered a good choice when protecting your savings from inflation.
Who has the gold in a IRA gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject 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.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
How is gold taxed in an IRA?
The fair market value of gold sold is the basis for tax. You don't have tax to pay when you buy or sell 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.
Gold can be used as collateral for loans. Lenders will seek the highest return on your assets when you borrow against them. In the case of gold, this usually means selling it. There's no guarantee that the lender will do this. They may hold on to it. They might decide to sell it. Either way you will lose potential profit.
If you plan on using your gold as collateral, then you shouldn't lend against it. It's better to keep it alone.
- (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.) (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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)
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement accounts
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. It is important to invest enough money each and every year to ensure you get adequate growth.
You may also wish to take advantage of tax-free investments such as a SIMPLE IRA, SEP IRA, and traditional 401(k). These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
It is important to save consistently over time. If you don't contribute the maximum amount, you will miss any tax benefits.
By: Jamie Redman
Title: Gareth Soloway Predicts Potential Bitcoin Dip to $15K
Sourced From: news.bitcoin.com/market-strategist-gareth-soloway-eyes-15k-bitcoin-in-event-of-stock-market-slide/
Published Date: Sun, 28 Jan 2024 23:00:58 +0000