Asset Management Firm Vaneck Shares 15 Crypto Predictions for 2024
Asset management firm Vaneck has recently revealed its 15 crypto predictions for the year 2024. These predictions cover a range of topics, including the arrival of a US recession, the approval of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), and the potential for a historic rally in the price of bitcoin. Vaneck believes that this rally could be driven by political events and regulatory shifts following a US presidential election.
Prediction 1: US Recession and Spot Bitcoin ETF Approvals
Vaneck's first prediction focuses on the US economy slipping into a recession and the SEC approving spot bitcoin ETFs. According to Vaneck, over $2.4 billion may flow into these ETFs in the first quarter of 2024, providing support for bitcoin's price.
It is worth noting that Vaneck is among the companies that have submitted an application to launch a spot bitcoin ETF with the SEC. Other applicants include Blackrock, Fidelity Investments, Ark Invest, and Bitwise.
Prediction 2: Bitcoin Halving and Price Rise
The second prediction centers around the upcoming Bitcoin halving in April 2024. Vaneck anticipates that this event will lead to minimal market disruption and a subsequent rise in bitcoin's price. This rise is expected to benefit low-cost miners in particular.
Prediction 3: Bitcoin's All-Time High
Vaneck's third prediction suggests that bitcoin will reach an all-time high in the fourth quarter of 2024. This surge in price could be influenced by political events and regulatory changes that follow a US presidential election.
Predictions for Ethereum
Vaneck also offers predictions for Ethereum. While the firm believes that Ethereum will outperform major tech stocks in 2024, it does not expect Ethereum to surpass bitcoin in terms of market dominance. Vaneck also predicts that Ethereum's market share will face challenges from other smart contract platforms.
The implementation of EIP-4844, also known as proto-danksharding, is expected to reduce transaction fees and improve scalability for layer 2 chains like Polygon, Arbitrum, and Optimism.
Prediction 6: NFT Activity and Ethereum's Lead
The sixth prediction focuses on non-fungible token (NFT) activity. Vaneck expects NFT activity to rebound to an all-time high, with Ethereum taking the lead. Additionally, Vaneck predicts that the ETH-to-BTC NFT issuance ratio will shift to 3-1 by the end of 2024, indicating increased traction for bitcoin in the NFT space.
Prediction 7: Competition in Crypto Spot Trading
Vaneck predicts that Binance, currently the leading crypto exchange for spot trading, will lose its number one position. Competitors such as Okx, Bybit, Coinbase, and Bitget are expected to contend for the top spot. Vaneck also suggests that Coinbase's futures market could exceed $1 billion in daily volume as regulated index inclusion becomes more important.
Prediction 8: Growth of Stablecoins and Institutional Adoption
The eighth prediction focuses on the market capitalization of stablecoins. Vaneck expects this market to surpass its previous peak and reach a new high above $200 billion. The growth of stablecoins will be accompanied by an increase in USDC's market share, signaling greater institutional adoption, particularly within emerging Layer 2 chains.
Prediction 9: Rise of Decentralized Exchanges (DEXs)
Vaneck predicts that decentralized exchanges (DEXs) will hit all-time highs in spot trading market share. This growth will be driven by fast blockchains like Solana and the increasing popularity of wallets that enable automated transactions, promoting on-chain trading and self-custody.
Prediction 10: Blockchain Use for Remittances
According to Vaneck, remittances will boost blockchain use, with the Lightning Network offering opportunities for "Bitcoin Staking" and yield generation through new and user-friendly staking tools.
Other Predictions
Vaneck also anticipates the emergence of a blockchain game with over 1 million daily players, leading to a rise in market capitalization for Immutable X. The firm also predicts that Solana will become a top 3 blockchain by market cap, total value secured (TVS), and user base, potentially surpassing Chainlink's TVS with its Pyth oracle.
The firm expects decentralized physical infrastructure (Depin) networks to experience increased adoption. Vaneck also foresees new accounting standards boosting corporate crypto holdings and the potential launch of a quasi-public blockchain with public chain connectivity by a major financial entity by 2025. Finally, Vaneck predicts that KYC-compliant decentralized finance (Defi) applications, led by Uniswap, will surpass non-KYC ones, attracting institutional volume and enhancing protocol fees.
What are your thoughts on Vaneck's 15 crypto predictions for 2024? Share your opinions in the comments section below.
Frequently Asked Questions
What should I pay into my Roth IRA
Roth IRAs can be used to save taxes on your retirement funds. These accounts cannot be withdrawn until you turn 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, you can't touch your principal (the initial amount that was deposited). You cannot withdraw more than the original amount you contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule is that you cannot withdraw your earnings without paying income taxes. Also, taxes will be due on any earnings you take. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 That leaves you with only $6,500 left. You can only take out what you originally contributed.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. You can withdraw your contributions plus interest from your traditional IRA when you retire. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs won't let you deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. Unlike a traditional IRA, there is no minimum withdrawal requirement. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
Gold prices have been on an upward trend over recent years, but they remain relatively low compared to other commodities such as oil and silver.
Some experts think that this could change in the near future. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Consider whether you will actually need the money that you are saving for retirement. It's possible to save for retirement without putting your savings into gold. However, when you retire at age 65, gold can provide additional protection.
- Second, be sure to understand your obligations before you purchase gold. Each type offers varying levels and levels of security.
- 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.
If you are thinking of buying gold, do your research. And if you already own gold, ensure you're doing everything possible to protect it.
What is the tax on gold in Roth IRAs?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
You don't pay tax if you have the money in a traditional IRA/401k. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
Each state has its own rules regarding these accounts. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . In Massachusetts, you can wait until April 1st. New York has a maximum age limit of 70 1/2. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
What is a gold IRA account?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase physical gold bullion coins anytime. You don't have to wait until retirement to start investing in gold.
You can keep gold in an IRA forever. Your gold holdings won't be subject to taxes when you pass away.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you've done that, you'll receive an IRA custody. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.
You'll have to pay taxes if you take your gold out of your IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. There are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
You shouldn't take out more then 50% of your total IRA assets annually. Otherwise, you'll face steep financial consequences.
How do you withdraw from an IRA that holds precious metals?
First decide if your IRA account allows you to withdraw funds. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. You will also have to account for taxes due on any amount you withdraw if you choose this option.
Next, figure out how much money will be taken out of your IRA. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely 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 require less space, as they don't contain individual coins. You will need to count each coin individually. 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. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
Who holds the gold in a gold IRA?
The IRS considers an individual who owns gold as holding “a form of money” subject to 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.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
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.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
forbes.com
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
irs.gov
bbb.org
How To
How to keep physical gold in an IRA
The easiest way to invest is to buy shares in companies that make gold. However, there are risks associated with this strategy. It isn't always possible for these companies to survive. There is always the chance of them losing their money due to fluctuations of the gold price.
An alternative option would be to buy physical gold itself. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's also easy to see how many gold you have. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You are also less likely to be robbed than investing in stocks.
There are however some disadvantages. You won't get the bank's interest rates or investment money. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. Finally, tax man may want to ask where you put your gold.
BullionVault.com has more information about how to buy gold in an IRA.
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By: Kevin Helms
Title: Vaneck Unveils 15 Crypto Predictions: Spot Bitcoin ETF Approvals, US Recession, BTC’s Historic Rally
Sourced From: news.bitcoin.com/vaneck-unveils-15-crypto-predictions-spot-bitcoin-etf-approvals-us-recession-btcs-historic-rally/
Published Date: Sun, 10 Dec 2023 00:30:13 +0000
