The Rise of Bitcoin
On October 24, 2023, bitcoin (BTC) experienced a robust 13% surge during the early morning trading hours, Eastern Time (ET). This rise catapulted bitcoin's value to $35,108 per unit, propelling the entire cryptocurrency market upwards by over 10%.
Impressive Gains Across the Market
As the market soared, traders who had placed their bets against crypto assets like bitcoin and ethereum found themselves in a tight spot. In a mere 24 hours, a staggering $323 million in crypto short positions evaporated.
Currently, the cryptocurrency market's value hovers around a whopping $1.3 trillion, marking a 10% increase. Within the past day, BTC's value ascended by 13%. Other major players also saw notable gains: ETH leaped by 9%, BNB ascended by 5%, and XRP and Solana both notched a 7% hike.
The Impact on Short Positions
These rapid price escalations have left those who shorted top cryptocurrencies scrambling, as their positions vanished in the wake of these impressive and quick rallies. Recent data from Coinglass reveals that in the last 12 hours, the market witnessed the liquidation of $51.91 million in long positions and a hefty $103 million in short positions.
Breaking down the 24-hour stats, short positions worth $323 million were obliterated, and another $104 million in longs faced a similar fate. Notably, of the total shorts liquidated, bitcoin contracts made up a significant chunk, accounting for $232 million out of the $323 million total.
Meanwhile, ethereum (ETH) saw more than $64 million in shorts liquidated. Solana (SOL) shorts tallied up to about $11.4 million. Additionally, shorts from a myriad of other alternative crypto tokens totaled approximately $21.83 million.
Increase in Trading Volume and Open Interest
Coinglass data also highlighted a surge in trading volume, reaching $203 billion in the past 24 hours, a 143% increase from the previous day. Open interest now stands at nearly $29.73 billion, up 4.55%. In total, the last day saw crypto liquidations amounting to an eye-popping $429.46 million across both long and short positions.
Share Your Thoughts
What do you think about all the speculative bets being wiped out over the past 24 hours? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
How does a gold IRA work?
You can purchase physical gold bullion coins anytime. You don't have to wait until retirement to start investing in gold.
An IRA lets you keep your gold for life. Your gold holdings won't be subject to taxes when you pass away.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
First, an individual retirement account will be set up to allow you to open a golden IRA. Once you've done that, you'll receive an IRA custody. 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 your gold IRA is established, you can purchase gold bullion coins. The minimum deposit required for gold bullion coins purchase is $1,000 However, you'll receive a higher interest rate if you put in more.
You'll have to pay taxes if you take your gold out of 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. However, there are exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. Otherwise, you'll face steep financial consequences.
How Do You Make a Withdrawal from a Precious Metal IRA?
First, you must decide if you wish to withdraw money from your IRA account. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.
An IRA is not the best option if you don't mind paying a penalty for early withdrawal. Instead, open a taxable brokerage. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, you need to determine how much money is going to be taken out from your IRA. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. Avoid unnecessary fees by opening an account with your debit card, rather than your credit card.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities will accept bullion bars, others require you to buy individual coins. Either way, you'll need to weigh the pros and cons of each before choosing one.
Bullion bars require less space, as they don't contain individual coins. But, each coin must be counted separately. However, you can easily track the value of individual coins by storing them in separate containers.
Some people prefer to keep their coins in a vault. Others prefer to store them in a safe deposit box. 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.
Is gold a good investment IRA option?
Gold is an excellent investment for any person who wants to save money. It's also a great way to diversify your portfolio. But gold has more to it than meets the eyes.
It has been used as a currency throughout history and is still a popular method of payment. It is often called “the most ancient currency in the universe.”
But gold, unlike paper currency, which is created by governments, is mined out from the ground. That makes it very valuable because it's rare and hard to create.
The supply and demand for gold determine the price of gold. When the economy is strong, people tend to spend more money, which means fewer people mine gold. This results in gold prices rising.
On the other hand, people will save cash when the economy slows and not spend it. This causes more gold to be produced, which lowers its value.
This is why investing in gold makes sense for individuals and businesses. If you make an investment in gold, you can reap the economic benefits whenever the economy is growing.
Additionally, you'll earn interest on your investments which will help you grow your wealth. In addition, you won’t lose any money if gold falls in value.
Should you Invest In Gold For Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. Consider investing in both.
In addition to being a safe investment, gold also offers potential returns. It is a good choice for retirees.
Gold is more volatile than most other investments. Therefore, its value is subject to change over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit of gold is that it's a tangible asset. Unlike stocks and bonds, gold is easier to store. It can also be carried.
You can always access gold as long your place it safe. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when the stock market falls.
Gold investment has another advantage: You can sell it anytime. Just like stocks, you can liquidate your position whenever you need cash. You don't have to wait for retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't place all your eggs in the same basket.
You shouldn't buy too little at once. Start with just a few drops. Next, add more as required.
Keep in mind that the goal is not to quickly become wealthy. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It's not exactly legal – WSJ
Three ways to invest in gold for retirement
It is crucial to understand how you can incorporate gold into your retirement plans. There are many ways to invest in gold if you have a 401k account at work. You may also want to consider investing in gold outside of your workplace. If you have an IRA (Individual Retirement Account), a custodial account could be opened at Fidelity Investments. You might also consider purchasing precious metals directly from a trusted dealer if they are not already yours.
These are the rules for gold investing:
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, put cash into your accounts. This will protect your against inflation and increase your purchasing power.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. Physical gold coins are easier to sell than certificates. Physical gold coins are also free from storage fees.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. By investing in multiple assets, you can spread your wealth. This helps to reduce risk and provides more flexibility when markets are volatile.
By: Jamie Redman
Title: Bitcoin Surges 13%, Wiping Out $323 Million in Short Positions
Sourced From: news.bitcoin.com/bitcoins-meteoric-rise-to-35000-erases-232m-in-short-positions-in-just-24-hours/
Published Date: Tue, 24 Oct 2023 16:30:13 +0000