Solana’s Market Performance in 2024: A Cool-Off Period

Introduction

During the first week of 2024, the digital currency Solana witnessed a significant decline, with its value dropping by over 6%. This downward trend has pushed Solana down to the fifth position in terms of market rank. As of Saturday, January 6, 2024, Solana's value is oscillating below the $100 mark.

A Chill in Solana's Market Performance

After experiencing a remarkable surge of over 700% in 2023, Solana (SOL) is now going through a cool-off period. In the past week, SOL saw a slight dip of more than 6%. Nevertheless, it still maintains a 46% increase in value against the US dollar over the previous month.

Current Value

On January 6, 2024, the intraday value of SOL fluctuated between a high of nearly $100 and a low of $92.23. At 12:51 p.m. Eastern Time, it was trading at $96.75 per unit. It's worth noting that SOL holds significant influence in the South Korean market, where it trades at $99 on Upbit and $98.81 on Bithumb. This surpasses the global average of $96 per unit, as reported by aggregate market sites.

Trading Volume and Pairs

Tether (USDT) is the primary pair for SOL, accounting for over 67% of all Solana trades. It is followed by the US dollar and the Korean won, contributing 14% and 8% of SOL's trade volume, respectively, according to data from cryptocompare.com. BTC and the stablecoin FDUSD represent 3.35% and 2.68% of SOL's trading activity, respectively. Currently, Solana ranks fifth in global trade volume, with $2.287 billion traded in the last 24 hours. However, this figure has decreased by over 30% compared to the previous day.

Market Capitalization

Solana's market capitalization currently stands at $41.30 billion, accounting for 2.387% of the total $1.73 trillion crypto market value. Despite experiencing a commendable 621% rise in the past year, SOL is still trailing more than 63% below its peak value of $259 per unit on November 6, 2021.

The Future Trajectory

As Solana navigates the volatile market, its future trajectory remains uncertain. This leaves investors wondering whether it will continue to be a leading performer in 2024.

What are your thoughts on Solana's market performance this week? Feel free to share your opinions in the comments section below.

Frequently Asked Questions

How much of your IRA should include precious metals?

It is important to remember that precious metals can be a good investment for anyone. It doesn't matter how rich you are to invest in precious metals. You can actually make money without spending a lot on gold or silver investments.

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 can still get benefits from precious metals regardless of what choice you make. Even though they aren't stocks, they still offer the possibility of long-term growth.

Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.

Can I buy Gold with 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. You can also transfer funds from an existing retirement fund.

The IRS allows individuals to contribute as high as $5,500 ($6,500 if they are married and jointly) to 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 contract are financial instruments that depend on the gold price. They allow you to speculate on future prices without owning the metal itself. You can only hold physical bullion, which is real silver and gold bars.

How much should precious metals be included in your portfolio?

First, let's define precious metals to answer the question. Precious metals refer to elements with a very high value relative other commodities. This makes them valuable in investment and trading. Gold is currently the most widely traded precious metal.

There are many other precious metals, such as silver and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also not affected by inflation and depression.

The general trend is for precious metals to increase in price with the overall market. But they don't always move in tandem with one another. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.

When the economy is healthy, however, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. These precious metals are rare and become more costly.

You must therefore diversify your investments in precious metals to reap the maximum profits. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.

How much should I contribute to my Roth IRA account?

Roth IRAs allow you to deposit your money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, you cannot touch your principal (the original amount deposited). No matter how much money you contribute, you cannot take out more than was originally deposited to the account. You must pay taxes on the difference if you want to take out more than what you initially contributed.

The second rule is that you cannot withdraw your earnings without paying income taxes. Also, taxes will be due on any earnings you take. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. 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.

You would still owe tax on $1,500 if you took out $4,000 of your earnings. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.

There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow you to deduct pretax contributions from your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. There are no restrictions on the amount you can withdraw from a Traditional IRA.

Roth IRAs won't let you deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal limit, unlike traditional IRAs. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.

How to open a Precious Metal IRA

First, decide if an Individual Retirement Account is right for you. Open the account by filling out Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form must be submitted within 60 days of the account opening. You can then start investing once you have this completed. You can also contribute directly to your paycheck via payroll deduction.

If you opt for a Roth IRA, you must complete Form 8903. Otherwise, it will be the same process as an ordinary IRA.

To qualify for a precious Metals IRA, there are specific requirements. The IRS states that you must be at least 18 and have earned income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. Additionally, you must make regular contributions. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.

You can use a precious-metals IRA to purchase gold, silver and palladium. But, you'll only be able to purchase physical bullion. This means you can't trade shares of stock and bonds.

You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option is offered by some IRA providers.

There are two main drawbacks to investing through an IRA in precious metallics. They aren't as liquid as bonds or stocks. It's also more difficult to sell them when they are needed. Second, they are not able to generate dividends as stocks and bonds. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.

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)
(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)
If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
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

How To

A growing trend: Gold IRAs

Investors seek diversification and protection against inflation by using gold IRAs.

The gold IRA allows investors to purchase physical gold bars and bullion. It is a tax-free investment that can be used to grow wealth and offers an alternative investment option to those who are concerned about stocks or bonds.

Investors can manage their assets with a gold IRA without worrying about market volatility. They can use the gold IRA to protect themselves against inflation and other potential problems.

Investors also enjoy the benefits of owning physical gold, which includes its unique properties such as durability, portability, and divisibility.

The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.

Investors looking for financial security are increasingly turning to the gold IRA.

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By: Jamie Redman
Title: Solana's Market Performance in 2024: A Cool-Off Period
Sourced From: news.bitcoin.com/solanas-rocky-start-to-2024-sols-value-dips-over-6-amidst-previous-years-highs/
Published Date: Sat, 06 Jan 2024 18:30:01 +0000