Ethereum's Recent Surge and Factors Behind It
Since the start of 2023, the value of ethereum (ETH) has increased by 85% when compared to the U.S. dollar. This significant rise can be attributed to various key factors. One of them is the buzz within the crypto community about the potential approval of a spot ethereum exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). This news has fueled a bullish outlook in the market. Furthermore, onchain analytics have revealed a notable increase in ETH accumulation by major holders, also known as 'whales', indicating a positive shift in market dynamics.
Peter Brandt's Short Position and Prediction
In the past two weeks, however, the upward trajectory of ETH has slowed down, with a slight 1.4% dip in its value against the greenback. On December 18, 2023, veteran trader Peter Brandt, who has been active in the markets since 1975, shared an ETH/USD chart from Tradingview. Brandt stated that classical chart patterns in price charts don't always perform as expected. He added that if the rising wedge in ethereum complies with the script, the target price could be $1,000, then $650.
Brandt further revealed that he had taken a short position on ETH, with a protective break-even stop. Shorting in financial markets involves betting against an asset, in this case, ETH, and predicting a decline in its value. If the decline occurs, it results in a profit from the short position. Adamant Capital founder Tuur Demeester and Colin Talks Crypto also expressed similar sentiments, pointing to bearish signs in the ETH/BTC chart and suggesting that BTC ETFs could further impact ETH's performance.
Ethereum's Potential Reversal and Temporary Phenomenon
While the chart pattern in Brandt's analysis indicates a potential reversal, it is not completely formed yet. Currently, there is a bearish pattern with consistently flat lower highs and a series of lower lows, suggesting that sellers are more dominant than buyers. However, it is common for crypto assets to experience low trading volume during holidays, which bears could take advantage of. Therefore, it is possible that the descending triangle formation in ether's price might be a temporary phenomenon.
Peter Brandt's Views on Crypto Assets
Peter Brandt has been vocal about his views on crypto assets and economic matters for a long time. In the past, he labeled the Bitcoin halving as a non-event and advocated for a 100 basis point increase in the benchmark interest rate by the U.S. Federal Reserve. Brandt also holds the belief that bitcoin (BTC) is a legacy coin, while dismissing most other cryptocurrencies as mere "make-believe crypto wannabees."
What are your thoughts on Peter Brandt's decision to short ether? Do you agree with his analysis? Share your opinions in the comments section below.
Frequently Asked Questions
How much should your IRA include precious metals
It is important to remember that precious metals can be a good investment for anyone. You don’t need to have a lot of money to invest. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might consider purchasing physical coins, such as bullion bars and rounds. It is possible to also purchase shares in companies that make precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. Although they aren’t stocks, they offer the possibility for long-term gains.
And unlike traditional investments, they tend to increase in value over time. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
How is gold taxed by Roth IRA?
The tax on an investment account is based on its current value, not what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
These rules vary from one state to another. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. You can delay until April 1st in Massachusetts. New York allows you to wait until age 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
What precious metals can you invest in for retirement?
It is gold and silver that are the best precious metal investment. They are both easy to trade and have been around for years. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Silver has always been popular among investors. This is a great choice for people who want to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinium: Platinum is another form of precious metal that's becoming increasingly popular. Like gold and silver, it's very durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It's also used in jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium is similar to platinum, but it's less rare. It's also more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
Who holds the gold in a gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
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.
You should consult a financial planner or accountant to see what options are available to you.
What precious metal is best for investing?
Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. If you are looking for quick profits, gold might not be the right investment. If patience and time are your priorities, silver is the best investment.
Gold is the best investment if you aren't looking to get rich quick. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
Should You Buy or Sell Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Some experts believe that this could change very soon. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also point out that gold is becoming popular because of its perceived value and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. You can save money for retirement even if you don't invest in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each offer varying degrees of security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. If you lose your gold coins, you may never recover them.
So, if you're thinking about buying gold, make sure you do your research first. If you already have gold, make sure you protect it.
What tax is gold subject in an IRA
The fair market value at the time of sale is what determines how much tax you pay on gold sales. If you buy gold, there are no taxes. It's not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
For loans, gold can be used to collateral. Lenders try to maximize the return on loans that you take against your assets. Selling gold is usually the best option. However, there is no guarantee that the lender would do this. They may just keep it. They might decide to sell it. Either way you will lose potential profit.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It is better to leave it alone.
Statistics
- 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 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)
- 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)
- 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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
forbes.com
How To
Online buying gold and silver is the best way to purchase it.
To buy gold, you must first understand how it works. Gold is a precious metallic similar to Platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
Two types of gold coins are available today: the legal tender type and the bullion type. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They are not exchangeable in any currency exchange system. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. Every dollar spent on gold purchases, the buyer receives one gram of gold.
When you are looking to purchase gold, the next thing to know is where to get it. You have a few options to choose from if you are looking to buy gold directly through a dealer. You can start by visiting your local coin shop. You can also go to a reputable website such as eBay. You might also consider buying gold from an online private seller.
Individuals selling gold at wholesale prices and retail prices are known as private sellers. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. This option is often a great choice for investing gold as it allows you more control over its price.
You can also invest in gold physical. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
To purchase gold by yourself, you can visit a bank and a pawnshop. A bank can offer you a loan for the amount that you need to buy gold. The pawnshop is a small business that allows customers to borrow money to buy items. Banks usually charge higher interest rates that pawn shops.
Another way to purchase gold is to ask another person to do it. Selling gold is also easy. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Jamie Redman
Title: Trader Peter Brandt Takes Short Position on Ethereum, Predicts Price Plunge
Sourced From: news.bitcoin.com/veteran-trader-peter-brandt-shorts-ethereum-signaling-potential-downturn/
Published Date: Tue, 19 Dec 2023 16:30:06 +0000
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