Bears Take the Reigns—Bitcoin Falls Under $40K Amid Market Turbulence
On Monday, Jan. 22, 2024, the value of bitcoin dropped below the $40,000 mark for the first time in 48 days, according to market analysis. Over the past 24 hours, bitcoin has experienced a 4% decline, with a 14.2% decrease observed over the previous two weeks.
Bitcoin's Recent Price Movements
Since early December 2023, specifically since Dec. 5, 2023, bitcoin's price has remained above the $40,000 threshold. The leading cryptocurrency reached a peak of $49,000 on Jan. 10, 2024, but this high was short-lived. Subsequently, the price descended to the $45,000 range. In recent days, it has struggled to maintain its position above $40,000 and eventually dipped below this threshold at 2:15 p.m. Eastern Time (ET) on Monday afternoon.
Currently, the value of bitcoin has dropped to approximately $39,400, with a trade volume of about $25.81 billion at 2:15 p.m., a significant increase from the $16.58 billion recorded at 8:00 a.m. (ET). Short-term indicators suggest that bitcoin (BTC) is experiencing a downward trend, characterized by increased volatility and a significant decline in value. The surge in trading volume during this downturn indicates a possible panic-induced selling spree, especially as the price falls below the key psychological support level of $40,000.
Impact on the Crypto Market
The recent drop in BTC's price has also filled a CME gap that existed around the $39,600 mark. Within an hour of the plunge, bitcoin long positions worth $25.57 million were liquidated, with $65.78 million in BTC longs eliminated throughout the day.
This decline in bitcoin's value has had a ripple effect on various other cryptocurrencies, contributing to a 3.02% decline in the overall $1.59 trillion crypto market economy on Monday. Ethereum has dropped by 6%, BNB by 4.5%, SOL by 9.4%, and XRP has seen a 4.7% decrease in the same timeframe.
What are your thoughts on bitcoin falling below the $40,000 range on Monday? Share your opinions in the comments section below.
Frequently Asked Questions
How Do You Make a Withdrawal from a Precious Metal IRA?
First decide if your IRA account allows you to withdraw funds. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.
Next, you need to determine how much money is going to be taken out from your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. 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. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Either way, you'll need to weigh the pros and cons of each before choosing one.
Because you don't have to store individual coins, bullion bars take up less space than other items. You will need to count each coin individually. On the flip side, storing individual coins allows you to easily track their value.
Some prefer to keep their money in a vault. Some prefer to keep them in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
How Does Gold Perform as an Investment?
The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.
Due to limited supplies, gold prices are subject to volatility. There is also a risk in owning gold, as you must store it somewhere.
What Should Your IRA Include in Precious Metals?
It is important to remember that precious metals can be a good investment for anyone. You don't need to be rich to make an investment in precious metals. You can actually make money without spending a lot on gold or silver investments.
You could also consider buying physical coins like bullion bars, rounds or bullion bars. Stocks in companies that produce precious materials could be purchased. You may also be interested in an IRA transfer program offered by your retirement provider.
No matter what your preference, precious metals will still be of benefit to you. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- 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)
- 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)
External Links
finance.yahoo.com
investopedia.com
wsj.com
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's Not Exactly Lawful – WSJ
cftc.gov
How To
Three ways to invest in gold for retirement
It's important to understand how gold fits in with your retirement plan. If you have a 401(k) account at work, there are several ways you can invest in gold. You may also want to consider investing in gold outside of your workplace. A custodial account can be opened by a brokerage firm like Fidelity Investments if you already have an IRA. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the rules for gold investing:
- Buy Gold with Your Money – You don't need credit cards, or to borrow money to finance your investments. Instead, deposit cash into your accounts. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins You Should Buy – Physical gold coins should be purchased over a paper certificate. Physical gold coins can be sold much faster than paper certificates. There are no storage fees for physical gold coins.
- Diversify Your Portfolio – Never put all of your eggs in one basket. By investing in multiple assets, you can spread your wealth. This helps reduce risk and gives you more flexibility during market volatility.
—————————————————————————————————————————————————————————————-
By: Jamie Redman
Title: Bitcoin Plummets Below $40K for First Time in 48 Days, Triggering Market-Wide Crypto Slide
Sourced From: news.bitcoin.com/bitcoin-plummets-below-40k-for-first-time-in-48-days-triggering-market-wide-crypto-slide/
Published Date: Mon, 22 Jan 2024 20:22:40 +0000
