Have you ever wondered why Bitcoin seems to be stuck in the same price range for months while other assets like gold, real estate, and silver are hitting new highs? Let's dive into the intriguing reason behind Bitcoin's lackluster performance compared to its counterparts.
Unveiling the Impact of Whale Activity on Bitcoin Price
Recent on-chain data reveals that large Bitcoin holders, known as whales, are on the move after remaining dormant for quite some time. These massive transfers usually coincide with market peaks or increased price volatility, indicating that long-time Bitcoin investors might be cashing out or readjusting their portfolios.
The Shift in Whale Behavior
- Whale transfers align with historical cycle tops
- Current whale activity is less intense than in previous cycles
- Selling pressure is concentrated among a select group of whales
Balancing Act: Institutional Investments vs. Whale Selling
While whales are offloading their holdings, institutions are actively pouring funds into Bitcoin through ETFs and treasuries, absorbing the excess supply. This delicate equilibrium between selling whales and buying institutions has kept Bitcoin's price relatively stable amidst increased whale activity.
The Battle of Supply and Demand
- Institutional inflows counterbalance whale selling pressure
- Market stability maintained by opposing forces
Looking Ahead: The Future of Bitcoin's Price
With Bitcoin's price range-bound due to conflicting supply and demand dynamics, a potential shift in capital from overextended equities and commodities could propel Bitcoin into the spotlight as the next investment destination. The current standoff between whale distribution and institutional accumulation sets the stage for an imminent market move.
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Remember, this article serves as a source of information and not financial advice. Always conduct thorough research before making any investment decisions.
This article on The Real Reason The Bitcoin Price Can't Go Higher was originally published on Bitcoin Magazine.
Frequently Asked Questions
Who is the owner of the gold in a gold IRA
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least 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 are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
A financial planner or accountant should be consulted to discuss your options.
Can I keep a Gold ETF in a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
You can also get an Individual Retirement Annuity, or IRA. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs can be made without tax.
What precious metals could you invest in to retire?
Gold and silver are the best precious metal investments. Both are easy to sell and can be bought easily. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: Gold is one of man's oldest forms of currency. It's stable and safe. This makes it a good option to preserve wealth in uncertain times.
Silver: Investors have always loved silver. It's a good choice for those who want to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinum: This precious metal is also becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It is, however, more expensive than its competitors.
Rhodium. Rhodium is used as a catalyst. It's also used in jewelry making. It is also quite affordable compared with other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. This is why it has become a favourite among investors looking for precious metals.
How much are gold IRA fees?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance fees and investment costs for your chosen investments.
You may have to pay additional fees if you want to diversify your portfolio. These fees can vary depending on which type of IRA account you choose. Some companies offer free checking, but charge monthly fees for IRAs.
Most providers also charge annual management costs. These fees are usually between 0% and 1%. The average rate is.25% each year. These rates can be waived if the broker is TD Ameritrade.
Statistics
- (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
External Links
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads, Example, and Risk Metrics
bbb.org
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
irs.gov
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Aside from its inherent value, it could be traded internationally. However, since there were no international standards for measuring gold at this point, different weights and measures existed worldwide. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. The result was a decrease in foreign currency demand, which led to an increase in their price. The United States began minting large quantities gold coins at this time, which led to a drop in the price. The U.S. government needed to find a solution to their debt because there was too much money in circulation. To do this, they decided that some of their excess gold would be sold back to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. Since then, the price of gold has increased significantly. Although the price of gold fluctuates today, it remains one of your most safe investments.
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By: Matt Crosby
Title: The Surprising Factor Holding Back Bitcoin's Price Increase
Sourced From: bitcoinmagazine.com/markets/bitcoin-price-cant-go-higher
Published Date: Wed, 24 Sep 2025 12:54:36 +0000
