Hey there, crypto enthusiasts! If you thought Bitcoin was done surprising us, think again. In just 19 days, Bitcoin skyrocketed from $98,000 to a mind-blowing $118,820, setting a new all-time high. This meteoric rise highlights Bitcoin's transition from a mere digital currency to a coveted store of value and a strategic asset.
The Rise of IBIT ETF
Breaking Records in Style
Last night, BlackRock’s iShares Bitcoin Trust (IBIT) proudly smashed ETF records by crossing $80 billion in assets under management in a mere 374 days. That's a speed record nearly five times faster than the Vanguard S&P 500 ETF (VOO), which took 1,814 days to achieve the same milestone. Impressive, right?
IBIT's Market Dominance
The Power of Bitcoin Investments
As of today, IBIT commands a whopping $83 billion and holds over 706,000 BTC, securing its position as the 21st largest ETF in the US market. Just two days ago, IBIT hit a new record high of $63.58, showcasing the immense demand for Bitcoin in the market.
The Labor of Owning Bitcoin
The American Perspective
Ever wondered how much effort it takes for the average American to own one Bitcoin? Well, the latest data reveals that it now requires 3,766 hours of work, equivalent to almost two full years of labor at the average US wage. That's quite a hefty price tag for a digital coin, isn't it?
Bitcoin's Global Dominance
A Currency Champion
According to Bank of America Global Research, Bitcoin has outshined 19 fiat currencies in 2025, boasting an 18.2% gain against the US dollar year-to-date. Surpassing traditional strong currencies like the Swedish krona and Euro, Bitcoin reaffirms its status as a powerful global monetary unit.
The Ascent to Market Cap Glory
Rising Above the Competition
Bitcoin has reclaimed its position among the world's elite assets, surpassing Amazon to become the 5th largest by market capitalization. With a market cap of $2.36 trillion and a price tag of $118,820, Bitcoin now sits shoulder-to-shoulder with tech giants like Apple and Microsoft. Quite an impressive feat, wouldn't you say?
Market Dynamics in Action
Price Surges and Liquidations
Over the past few days, Bitcoin's impressive price gains have led to the liquidation of over $463 million in short positions. Data from Coinglass suggests that an additional $1.5 billion in short positions are at risk of liquidation if Bitcoin hits the $120,000 mark. The stakes are high in the crypto market!
Exciting times in the world of Bitcoin! Stay tuned for more updates and keep a close eye on this digital gold mine. Who knows what other surprises it has in store for us!
Frequently Asked Questions
Who has the gold in a IRA gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
You will need to declare the value of gold if you intend on selling it one day. This could impact how capital gains taxes you owe for cash investments.
Consult a financial advisor or accountant to determine your options.
How much tax is gold subject to in an IRA
The tax on the sale of gold is based on its fair market value when sold. You don't pay taxes when you buy gold. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
Loans can be secured with gold. Lenders try to maximize the return on loans that you take against your assets. This often means selling gold. It's not guaranteed that the lender will do it. They may just keep it. Or they might decide to resell it themselves. Either way, you lose potential profit.
You should not lend against your gold if it is intended to be used as collateral. You should leave it alone if you don't intend to lend against it.
What are some of the advantages and disadvantages to a gold IRA
An Individual Retirement Account (IRA), unlike regular savings accounts, doesn't require you to pay tax on interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. However, there are disadvantages to this type investment.
You may lose all your accumulated savings if you take too much out of your IRA. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
Another problem is the cost of managing your IRA. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
You can purchase insurance if you want to keep your money out of a bank. Most insurers require you to own a minimum amount of gold before making a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit how many ounces you can keep. Others allow you to pick your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. The price of physical gold is higher than that of gold futures. Futures contracts offer flexibility for buying gold. You can set up futures contracts with a fixed expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does provide coverage for damage from natural disasters, however. If you live in a high-risk area, you may want to add additional coverage.
Insurance is not enough. You also need to think about the cost of gold storage. Insurance doesn't cover storage costs. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
To open a IRA in gold, you will need to first speak with a qualified custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians can't sell assets. They must instead keep them for as long as you ask.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Your monthly investment goal should be stated.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. The company will review your application and send you a confirmation letter.
When opening a gold IRA, you should consider using a financial planner. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
How much should precious metals be included in your portfolio?
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals have elements with an extremely high worth relative to other commodity. They are therefore very attractive for investment and trading. The most traded precious metal is gold.
There are many other precious metals, such as silver and platinum. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also relatively unaffected both by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. That said, they do not always move in lockstep with each other. For example, when the economy is doing poorly, the price of gold typically rises while the prices of other precious metals tend to fall. This is because investors expect lower interest rates, making bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. These precious metals are rare and become more costly.
You must therefore diversify your investments in precious metals to reap the maximum profits. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
What is the benefit of a gold IRA?
Many benefits come with a gold IRA. You can diversify your portfolio with this investment vehicle. You control how much money goes into each account and when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This is a great way to make a smooth transition if you want to retire earlier.
The best thing is that investing in gold IRAs doesn't require any special skills. They are readily available at most banks and brokerages. You don't have to worry about penalties or fees when withdrawing money.
However, there are still some drawbacks. Gold is known for being volatile in the past. Understanding why you invest in gold is crucial. Is it for growth or safety? Do you want to use it as an insurance strategy or for long-term growth? Only then will you be able make informed decisions.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. One ounce won't be enough to meet all your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. Even one ounce is enough. However, you will not be able buy any other items with those funds.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
bbb.org
finance.yahoo.com
irs.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
How To
Three Ways to Invest In Gold For Retirement
It is important to understand the role of gold in your retirement plan. You have many options for investing in gold if there is a 401K account at your workplace. You might also consider investing in gold outside your workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. If precious metals aren't your thing, you may be interested in buying them from a dealer.
These are three easy rules to remember if you invest in gold.
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, cash in your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins – Physical gold coins are better than a paper certificate. It's easier to sell physical gold coins rather than certificates. Physical gold coins are also free from storage fees.
- Diversify your Portfolio – Don't put all your eggs in one basket. Also, diversify your wealth and invest in different assets. This helps to reduce risk and provides more flexibility when markets are volatile.
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By: Oscar Zarraga Perez
Title: Bitcoin Surpasses Record Highs with IBIT ETF Achievements
Sourced From: bitcoinmagazine.com/news/bitcoin-hits-new-all-time-high-as-ibit-breaks-etf-records
Published Date: Fri, 11 Jul 2025 16:04:15 +0000
