Bitcoin had a triumphant day on Friday, reaching a pinnacle not seen in three months, invigorated by the market's increasing confidence that the United States Securities and Exchange Commission (SEC) is on the verge of giving the green light to a variety of spot bitcoin exchange-traded funds (ETFs).
According to remarks made by SEC Chair Gary Gensler, the body is currently considering as many as ten applications for this product. This development coincides with the SEC's decision to withdraw its legal action against the top executives of Ripple (XRP).
Bitcoin's Momentous Climb
Bitcoin reached an impressive high in Friday's trading session, driven by the increasing hopes that the SEC is close to approving a number of spot bitcoin ETFs.
Bitcoin's value skyrocketed beyond the $30,000 mark, reaching a zenith of $30,104.09 during the course of the day. This surge came after a low of $28,449.96 the previous day, making today's peak the highest point Bitcoin has reached since July 23.
From a technical analysis perspective, the breaching of a barrier at 69.00 on the relative strength index (RSI) also played a significant role in the gains. At the time of writing, the price strength stands at a reading of 71.14, indicating an overbought market.
Additionally, the market has experienced some minor profit-taking, with bitcoin currently trading at $29,475.77.
Ethereum (ETH) also experienced an uptick on Friday, as the cryptocurrency once again surpassed the $1,600 threshold.
After hitting a low of $1,553.03 on Thursday, ETH/USD soared to a high of $1,628.61 during the day. This rise propelled ethereum to its highest value since the beginning of the week when the price was over $1,640.
This spike comes after bulls overturned a breakout below a support point of $1,540, and it appears they're now setting their sights on a resistance of $1,650.
In order to reach this goal, the RSI, currently at 51.81, will need to surpass its own threshold at 55.00.
Will the momentum seen today carry on into the weekend? Only time will tell.
Frequently Asked Questions
How does a Gold IRA account work?
Physical gold bullion coin can be purchased at any time. You don’t have to wait to begin investing in gold.
You can keep gold in an IRA forever. Your gold holdings will not be subject to tax when you are gone.
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.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done that, you'll receive an IRA custody. This company acts as a middleman between you and the IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reporting.
Once your gold IRA is established, you can purchase gold bullion coins. Minimum deposit required is $1,000 You'll get a higher rate of interest if you deposit more.
Taxes will apply to gold that you take out of an IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
A small percentage may mean that you don't have to pay taxes. However, there are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
It's best not to take out more 50% of your total IRA investments each year. A violation of this rule can lead to severe financial consequences.
What precious metals can you invest in for retirement?
The best precious metal investments are gold and silver. Both can be easily bought and sold, and have been around since forever. These are great options to diversify your portfolio.
Gold: The oldest form of currency known to man is gold. It is stable and very secure. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: The popularity of silver has always been a concern for investors. This is a great choice for people who want to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. It's also more expensive than the other two.
Rhodium: Rhodium is used in catalytic converters. It is also used for jewelry making. It's also relatively inexpensive compared to other precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It is also cheaper. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
How much is gold taxed under a Roth IRA
A tax assessment for an investment account will be based on the current market value, and not what you paid initially. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
The rules governing these accounts vary by state. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. You can delay until April 1st in Massachusetts. New York is open until 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
Gold IRAs: A Growing Trend
Investors seek diversification and protection against inflation by using gold IRAs.
The gold IRA allows owners to invest in physical gold bullion and bars. It is tax-free and can be used by investors who aren't concerned about stocks and bond.
Investors can have confidence in their investments and avoid market volatility with a gold IRA. They can use the gold IRA to protect themselves against inflation and other potential problems.
Investors also get the unique benefits of owning physical Gold, including its durability, portability, flexibility, and divisibility.
The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.
Investors looking for financial security are increasingly turning to the gold IRA.
By: Eliman Dambell
Title: Bitcoin and Ethereum Rise: Optimism Fuels as Prospects of BTC ETF Approval Mount
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-above-30000-as-etf-hopes-intensify/
Published Date: Fri, 20 Oct 2023 13:30:37 +0000