Alliance Bernstein Foresees Bitcoin Reaching $150K in 2025
Alliance Bernstein, a global asset management firm, has projected that the price of bitcoin will surge to $150,000 by 2025. Gautam Chhugani, the firm's senior analyst specializing in digital assets, expressed this optimistic prediction in a note released on Tuesday. Chhugani anticipates that the U.S. Securities and Exchange Commission (SEC) will soon grant approvals for spot bitcoin exchange-traded funds (ETFs), including those proposed by leading asset management companies like Blackrock and Fidelity.
Chhugani, emphasizing the significance of timing, stated, "You may not like bitcoin as much as we do, but a dispassionate view of bitcoin as a commodity suggests a turn of the cycle." He further elaborated:
A good idea is only as good as its timing — SEC approved ETFs by world’s top asset managers (Blackrock, Fidelity et al), seems imminent.
The analyst also highlighted that after the upcoming bitcoin halving in April 2022, "losing miners" will be phased out, resulting in favorable conditions for increased profitability among the remaining participants.
Alliance Bernstein additionally predicts that spot bitcoin ETF approvals would lead to approximately 10% of bitcoin's circulating supply being invested in ETFs. Currently, Grayscale's Bitcoin Trust (GBTC) is the only similar product available. However, the crypto asset manager has filed a proposal to convert GBTC into a spot bitcoin ETF. While the SEC initially rejected the proposal, a court ruling later favored the crypto firm, prompting the securities regulator to reassess the application.
Bernstein recently suggested that a spot bitcoin ETF becoming a reality in January 2023 appears highly likely. Some analysts, including those at JPMorgan, anticipate that the SEC will approve multiple spot bitcoin ETFs simultaneously. The price of bitcoin experienced a surge last week due to speculation surrounding the imminent launch of Blackrock's spot bitcoin ETF, as the company is currently the world's largest asset manager.
SEC Chairman Gary Gensler has revealed that the securities watchdog is reviewing eight to ten spot bitcoin ETF applications. Prominent applicants include ARK Investment Management, led by Cathie Wood, as well as Blackrock, Bitwise, Wisdomtree, Fidelity, Vaneck, and Invesco. Eight applications are slated for the first quarter of next year, while three have review dates in the second quarter.
Do you believe that bitcoin will reach $150,000 in 2025? Share your thoughts in the comments section below.
Frequently Asked Questions
Is it a good idea to open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. There are no ways to recover the money you lost in an investment. This includes any loss of investments from theft, fire, flood or other circumstances.
This type of loss can be avoided by investing in physical silver and gold coins. These coins have been around for thousands and represent a real asset that can never be lost. They are likely to fetch more today than the price you paid for them in their original form.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
Remember that you will not see any returns unless you are retired if you open an Account. Don't forget the future!
How much should precious metals be included in your portfolio?
To answer this question, we must first understand what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is not affected by inflation or deflation.
The general trend is for precious metals to increase in price with the overall market. That said, they do not always move in lockstep with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors expect lower interest rate, making bonds less appealing investments.
Contrary to this, when the economy performs well, the opposite happens. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. They are more rare, so they become more expensive and less valuable.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
What are the pros & cons of a Gold IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. However, there are also disadvantages to this type of investment.
You may lose all your accumulated savings if you take too much out of your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
If you prefer your money to be kept out of a bank, then you will need insurance. Most insurers require you to own a minimum amount of gold before making a claim. You might be required to buy insurance that covers losses up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. You may be limited in the amount of gold you can have by some providers. Others allow you to pick your weight.
You will also have to decide whether to purchase futures or physical gold. Gold futures contracts are more expensive than physical gold. However, futures contracts give you flexibility when buying gold. They allow you to set up a contract with a specific expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. It does offer coverage for natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
Apart from insurance, you should consider the costs of storing your precious metals. Insurance doesn't cover storage costs. For safekeeping, banks typically charge $25-40 per month.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians cannot sell your assets. They must instead keep them for as long as you ask.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. The plan should contain information about the types of investments you wish to make such as stocks, bonds or mutual funds. Also, you should specify how much each month you plan to invest.
After filling in the forms, please send them to the provider. The company will review your application and send you a confirmation letter.
You should consult a financial planner before opening a Gold IRA. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- 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)
- 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)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Legal – WSJ
The best place to buy silver or gold online
You must first understand the workings of gold before you can purchase it. It is a precious metal that is very similar to platinum. Because of its resistance to corrosion and durability, it is very rare. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins should only be used for investment purposes. Inflation can cause their value to increase.
They cannot be used in currency exchanges. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Each dollar spent earns the buyer 1 gram gold.
The next thing you should know when looking to buy gold is where to do it from. There are a few options if you wish to buy gold directly from a dealer. First, your local currency shop is a good place to start. You can also go to a reputable website such as eBay. You may also be interested in buying gold through private sellers online.
Individuals selling gold at wholesale prices and retail prices are known as private sellers. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. This means that you will get less back from a private seller than if you sell it through a coin shop or on eBay. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.
The other option is to purchase physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
To purchase gold by yourself, you can visit a bank and a pawnshop. A bank can give you a loan up to the amount you intend to invest in Gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks usually charge higher interest rates that pawn shops.
The final option is to ask someone to buy your gold! Selling gold is also easy. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
By: Kevin Helms
Title: Bitcoin Price Expected to Soar to $150,000 by 2025 as Analyst Predicts Imminent Approval of Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/analyst-predicts-bitcoin-price-rising-to-150000-by-2025-imminent-approval-of-spot-bitcoin-etfs-expected/
Published Date: Thu, 02 Nov 2023 01:30:40 +0000