Standard Chartered's Bold Bitcoin Prediction
Standard Chartered, a global financial institution, has made a bold prediction that the price of bitcoin could skyrocket to $200,000 in 2025. This prediction is based on the potential approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), a development that many experts believe will occur in the near future. According to Standard Chartered's analysts, the approval of these ETFs will have a profound impact on bitcoin's price and attract significant institutional investment.
The Importance of ETF Approval
Standard Chartered's analysts assert that the approval of spot bitcoin ETFs will be a game-changer for bitcoin's mainstream adoption and investment by institutional money. They compare this potential development to the introduction of the first U.S.-based gold exchange-traded product (ETP) in 2004, which caused the price of gold to increase by 4.3 times over a period of seven to eight years. The analysts expect bitcoin to experience similar price gains, but within a shorter timeframe of one to two years, due to the faster development of the BTC ETF market.
Price Projections and Bitcoin Holdings
Based on their analysis, Standard Chartered's experts anticipate that bitcoin could reach a price level of $100,000 by the end of 2024. However, if the expected inflows of institutional money into spot U.S. ETFs materialize, they believe that a price level closer to $200,000 by the end of 2025 is possible. The analysts estimate that between 437,000 and 1.32 million new bitcoins will be held in spot U.S. ETFs by the end of 2024, with a total value of approximately $50-100 billion.
Standard Chartered's Past Predictions
Standard Chartered has been closely monitoring the cryptocurrency market and has made accurate predictions in the past. Last year, the bank declared that the "crypto winter" had ended, indicating a positive shift in market sentiment. Additionally, they suggested that bitcoin could surpass $100,000 sooner than previously anticipated. These past predictions lend credibility to their latest projection of bitcoin reaching $200,000 in 2025.
In conclusion, Standard Chartered's experts foresee a bright future for bitcoin, with the potential for its price to soar to $200,000 by 2025. The approval of spot bitcoin ETFs by the SEC is seen as a crucial catalyst for attracting institutional investment and driving significant price upside. As always, the cryptocurrency market remains unpredictable, but Standard Chartered's analysis provides valuable insights for investors and enthusiasts alike.
What are your thoughts on Standard Chartered's prediction? Do you believe that bitcoin will reach $200,000 in 2025? Let us know in the comments section below.
Frequently Asked Questions
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. Transfer funds from an existing retirement account are also possible.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts are financial instruments that are based on gold's price. They allow you to speculate on future prices without owning the metal itself. But physical bullion refers to real gold and silver bars you can carry in your hand.
What are the advantages of a IRA with a gold component?
There are many advantages to a gold IRA. It is an investment vehicle that can diversify your portfolio. You have control over how much money goes into each account.
You have the option of rolling over funds from other retirement account into a gold IRA. This makes for an easy transition if you decide to retire early.
The best thing about investing in gold IRAs is that you don’t need any special skills. They are offered by most banks and brokerage companies. You don't have to worry about penalties or fees when withdrawing money.
That said, there are drawbacks too. The volatility of gold has been a hallmark of its history. Understanding why you invest in gold is crucial. Are you looking for safety or growth? Are you looking for growth or insurance? Only by knowing the answer, you will be able to make an informed choice.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. One ounce won't be enough to meet all your needs. 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. Even a single ounce can suffice. These funds won't allow you to purchase anything else.
How much should I contribute to my Roth IRA account?
Roth IRAs can be used to save taxes on your retirement funds. These accounts cannot be withdrawn until you turn 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, you can't touch your principal (the initial amount that was deposited). This means that regardless of how much you contribute to an account, you cannot take out any more than you initially contributed. If you take out more than the initial contribution, you must pay tax.
The second rule is that your earnings cannot be withheld without income tax. So, when you withdraw, you'll pay taxes on those earnings. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also assume that you make $10,000 per year from your Roth IRA contributions. This would mean that you would have to pay $3,500 in federal income tax. You would have $6,500 less. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 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 pre-tax contributions to be deducted from your taxable tax income. 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 won't let you deduct your contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal limit, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
What is a Precious Metal IRA (IRA)?
A precious metal IRA allows you to diversify your retirement savings into gold, silver, platinum, palladium, rhodium, iridium, osmium, and other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers only to the actual metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This means you'll receive dividends every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. You pay only a small percentage of your gains tax. Plus, you get free access to your funds whenever you want.
Can the government take your gold
You own your gold and therefore the government cannot seize it. It is yours because you worked hard for it. It belongs entirely to you. However, there may be some exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. Your precious metals can also be lost if you owe tax to the IRS. However, even if taxes are not paid, gold is still your property.
Who has the gold in a IRA gold?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to 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.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
It is a good idea to consult an accountant or financial planner to learn more about your options.
How Much of Your IRA Should Be Made Up Of Precious Metals
You should remember that precious metals are not only for the wealthy. You don't have to be rich to invest in them. There are many ways to make money on silver and gold investments without spending too much.
You might think about buying physical coins such a bullion bar or round. You could also buy shares in companies that produce precious metals. Your retirement plan provider may offer an IRA rollingover program.
You'll still get the benefit of precious metals no matter which country you live in. These metals are not stocks, but they can still provide long-term growth.
Their prices are more volatile than traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- 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)
- 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)
External Links
forbes.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
cftc.gov
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement account
How To
Investing in gold or stocks
This might make it seem very risky to invest gold as an investment tool. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief comes from the fact most people see gold prices falling due to the global economy. They think that they would lose money if they invested in gold. In reality, though, gold investment can offer significant benefits. Let's take a look at some of the benefits.
One of the oldest currencies known to man is gold. Its use can be traced back to thousands of years ago. It is a valuable store of value that has been used by many people throughout the world. It's still used by countries like South Africa as a method of payment.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. You must determine how much gold bullion you can afford per gram before you consider buying it. You can always ask a local jeweler what the current market rate is if you don't have it.
It is also worth noting that although gold prices have declined recently, the cost of producing gold has increased. Although the price of gold has dropped, production costs have not.
The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. 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 you have gained a better understanding about gold as an investment tool. Before making any investment decisions, we strongly advise that you thoroughly research all options. Only after doing so can you make an informed decision.
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By: Kevin Helms
Title: Standard Chartered Predicts Bitcoin Price Could Reach $200,000 in 2025
Sourced From: news.bitcoin.com/standard-chartered-btc-could-hit-200k-in-2025-with-spot-bitcoin-etf-approval/
Published Date: Wed, 10 Jan 2024 01:00:47 +0000
