Jim Cramer Expects Further Bitcoin Price Drop
Jim Cramer, the host of CNBC's Mad Money show, has reaffirmed his bearish outlook on the price of bitcoin, predicting that the cryptocurrency will continue to struggle in the midst of a plummeting crypto market. Cramer, a former hedge fund manager and co-founder of Thestreet.com, took to social media platform X to share his thoughts on the matter.
Cramer expressed his skepticism on Tuesday after bitcoin's price fell below $39,000, stating, "Now that bitcoin's down about 20% from its high, I expect a strong stand to be made but it won't hold because not enough money is coming in. New theme: Number Go Down." This comes after the Mad Money host previously referred to the recent price drop as a "nasty beginning" to a significant downward spiral.
Despite Cramer's pessimistic predictions, many users on X criticized his track record in accurately forecasting bitcoin's price. Some even suggested the reverse Cramer effect, where his bearish stance could potentially indicate a bullish market for bitcoin. In other words, they view Cramer's bearish outlook as a sign that the bottom is in.
Cramer has been vocal about his views on bitcoin following the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) on January 10. The price of bitcoin initially surged above $47,000 in anticipation of the SEC's approval but subsequently plummeted after the announcement.
Last week, Cramer described the price drop as a "nasty beginning to the bitcoin selloff." However, he also acknowledged that bitcoin is a "technological marvel" that is here to stay and cannot be killed. While cautious about the falling price, he stated that he is not vehemently against spot bitcoin ETFs as long as individuals conduct thorough research before investing.
What are your thoughts on Jim Cramer's bitcoin price outlook? Share your opinions in the comments section below.
Frequently Asked Questions
What is the cost of gold IRA fees
A monthly fee of $6 for an Individual Retirement Account is charged. This includes the account maintenance fees and any investment costs associated with your chosen investments.
If you wish to diversify your portfolio, you may need to pay additional fees. The type of IRA you choose will determine the fees. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Most providers also charge annual management costs. These fees range from 0% to 1%. The average rate per year is.25%. These rates can be waived if the broker is TD Ameritrade.
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 have to be rich to invest in them. You can actually make money without spending a lot on gold or silver investments.
You might also be interested in buying physical coins, such bullion rounds or bars. Also, you could buy shares in companies producing precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
Regardless of your choice, you'll still benefit from owning precious metals. They are not stocks but offer long-term growth.
Their prices rise with time, which is a different to traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.
Is gold a good investment IRA option?
Anyone who is looking to save money can make gold an excellent investment. It can be used to diversify your portfolio. There's more to gold that meets the eye.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is sometimes called the “oldest currency in the world”.
But gold is mined from the earth, unlike paper currencies that governments create. Because it is rare and difficult to make, it is extremely valuable.
The supply and demand factors determine how much gold is worth. The strength of the economy means people spend more, and so, there is less demand for gold. Gold's value rises as a result.
On the other hand, people will save cash when the economy slows and not spend it. This means that more gold is produced, which reduces its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
In addition to earning interest on your investments, this will allow you to grow your wealth. In addition, you won’t lose any money if gold falls in value.
What are 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 is tax-deferred until it's withdrawn. You can decide how much money you withdraw each year. There are many types to choose from when it comes to IRAs. Some are better suited to college savings. Others are intended for investors seeking higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This type of account might be a good choice if your goal is to retire early.
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 that requires you to pay taxes on the gains you make while you wait to access them, a gold IRA does not have to do this. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. It means that you don’t have to remember to make deposits every month. Direct debits could be set up to ensure you don't miss a single payment.
Gold is one of today's most safest investments. Because it isn't tied to any particular country its value tends be steady. Even during economic turmoil, gold prices tend to stay relatively stable. This makes it a great investment option to protect your savings from inflation.
What's the advantage of a Gold IRA?
There are many benefits to a gold IRA. It is an investment vehicle that can diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. 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're available at most banks and brokerage firms. Withdrawals are made automatically without having to worry about fees or penalties.
However, there are still some drawbacks. Gold has always been volatile. It's important to understand the reasons you're considering investing in gold. Are you looking for growth or safety? Are you looking for growth or insurance? Only when you are clear about the facts will you be able take an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce will not be sufficient to meet all your requirements. You may need several ounces, depending on what you intend to do with your precious gold.
You don't need to have a lot of gold if you are selling it. Even one ounce is enough. But, those funds will not allow you to buy anything.
What is the best precious metal to invest in?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. You might not want to invest in gold if you're looking for quick returns. If patience and time are your priorities, silver is the best investment.
If you don't care about getting rich quickly, gold is probably the way to go. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
How does a gold IRA account work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
You can buy physical gold bullion coins at any time. You don’t have to wait to begin investing in gold.
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.
First, an individual retirement account will be set up to allow you to open a golden IRA. After you do this, you will be granted an IRA custodian. This company acts like a middleman between the IRS 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 set up your gold IRA, it's possible to buy gold bullion. Minimum deposit is $1,000 You'll get a higher rate of interest if you deposit more.
You will pay taxes when you withdraw your gold from your IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. There are some exceptions, though. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
Avoid taking out more that 50% of your total IRA assets each year. A violation of this rule can lead to severe financial consequences.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- 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
cftc.gov
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
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
How To
How to hold physical gold in an IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. But, this approach comes with risks. These companies may not survive the next few years. There is always the chance of them losing their money due to fluctuations of the gold price.
Alternative options include buying physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. 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 easier to see how much gold you've got stored. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You also have a lower chance of theft than stocks.
There are however some disadvantages. You won't get the bank's interest rates or investment money. You can't diversify your holdings, and you are stuck with the items you have bought. Finally, the taxman may ask you about where you have put your gold.
Visit BullionVault.com to find out more about gold buying in an IRA.
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By: Kevin Helms
Title: Jim Cramer Doubles Down on Bearish Bitcoin Price Outlook
Sourced From: news.bitcoin.com/mad-money-host-jim-cramer-doubts-bitcoin-will-find-its-footing-as-selloff-continues/
Published Date: Wed, 24 Jan 2024 00:30:44 +0000
