The year-to-date performance of bitcoin (BTC), the leading digital currency by market cap, has been nothing short of remarkable, with a staggering increase of over 100%. This impressive rally has sparked curiosity about the potential longevity of bitcoin's upward trajectory. In a recent interview, Gareth Soloway, the head market strategist at inthemoneystocks.com, delved into this topic, providing insights into the future of bitcoin. Soloway also discussed the upcoming gathering of the U.S. Federal Reserve and the unprecedented ascent of 10-year treasury yields.
Federal Reserve and Treasury Yields
During a discussion with Michelle Makori, the anchor and editor-in-chief at Kitco News, Soloway highlighted the Federal Reserve as the current focal point of the market. He speculated on whether the central bank will choose to raise the federal funds rate. Soloway also emphasized the significance of the 10-year treasury yields surpassing 5% for the first time in 16 years. According to him, a 5% yield on the 10-year treasury is crucial to the psychology of the market. He further predicted a potential recession in the fourth quarter of the year, pointing out the contrasting consumer confidence levels across different income brackets.
Bitcoin's Resilience and ETF Approval
Shifting the focus to bitcoin, Soloway expressed caution regarding the potential approval of a spot bitcoin exchange-traded fund (ETF). He warned that such approval might trigger a substantial sell-off in the cryptocurrency. While acknowledging bitcoin's impressive performance, Soloway questioned its ability to withstand a 15-20% asset sell-off in the Nasdaq. He expressed concern that a significant plunge in the stock market, around 35%, could eventually lead to fear and panic among bitcoin holders. Soloway suggested that if an ETF approval happens by the end of the year or early in 2024, it may not necessarily drive bitcoin's price higher. He mentioned the possibility of the approval already being factored into the current price, which could result in a sell-off upon the news.
The Future of Bitcoin
Looking ahead, Soloway contemplated the narratives that could drive bitcoin's price post-ETF approval. He highlighted the growing acceptance of BTC as a legitimate asset class by institutional investors, drawing parallels with gold. In the event of turbulent times for the stock markets, Soloway envisioned an increased demand for bitcoin. He predicted that the next resistance level for bitcoin during this rally might be around $47,000 per unit. Soloway also acknowledged that many ETF institutions have likely been accumulating bitcoin over the past few months in anticipation of an approval. Therefore, there might not be as many buyers for the spot ETF.
Despite his optimism about bitcoin, Soloway acknowledged the possibility of a significant dip in its price, particularly if the stock markets experience a nosedive and panic ensues. He emphasized the intensity and impact of panic as an emotion, stating that even in such a scenario, bitcoin could still see a dip. In addition to monitoring bitcoin, Soloway expressed optimism about the future of gold, predicting a potential surge to $2,400 to $2,500 by 2024.
Gareth Soloway, a market strategist, provided valuable insights into the potential longevity of bitcoin's rally. He discussed the significance of the Federal Reserve and the unprecedented surge in treasury yields. Soloway also expressed caution regarding the potential approval of a spot bitcoin ETF and its possible impact on the cryptocurrency's price. Despite his concerns, Soloway highlighted the growing acceptance of bitcoin as a legitimate asset class and its potential demand during turbulent times. He concluded by expressing optimism about the future of gold. What are your thoughts on Soloway's predictions? Share your opinions in the comments section below.
Frequently Asked Questions
Are gold investments a good idea for an IRA?
Any person looking to save money is well-served by gold. It's also a great way to diversify your portfolio. There is much more to gold than meets your eye.
It's been used as a form of payment throughout history. It's often referred to as “the world's oldest currency.”
But unlike paper currencies, which governments create, gold is mined out of the earth. It's hard to find and very rare, making it extremely valuable.
The price of gold fluctuates based on supply and demand. The economy that is strong tends to be more affluent, which means there are less gold miners. The value of gold rises as a consequence.
On the flip side, people save cash for emergencies and don't spend it. This means that more gold is produced, which reduces its value.
This is why it makes sense to invest in gold for individuals and companies. You will benefit from economic growth if you invest in gold.
Also, your investments will earn you interest which can help increase your wealth. You won't lose your money if gold prices drop.
What precious metals do you have that you can invest in for your retirement?
It is gold and silver that are the best precious metal investment. They are both easy to trade and have been around for years. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: This is the oldest form of currency that man has ever known. It is also extremely safe and stable. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Silver has been a favorite among investors for years. It is an excellent choice for investors who wish to avoid volatility. Silver tends to move up, not down, unlike gold.
Platinum: A new form of precious metal, platinum is growing in popularity. It's resistant to corrosion and durable, similar to gold and silver. It is however more expensive than its counterparts.
Rhodium: Rhodium is used in catalytic converters. It is also used to make jewelry. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
What are the benefits of a Gold IRA?
It is best to put your retirement money in an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You have complete control over how much you take out each year. There are many types and types of IRAs. Some are better suited for people who want to save for college expenses. Others are made for investors seeking higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. But once they start withdrawing funds, those earnings aren't taxed again. This account is a good option if you plan to retire early.
An IRA with a gold status is like any other IRA because you can put money into different asset classes. Unlike a regular IRA you don't need to worry about taxes while you wait for your gains to be available. People who want to invest their money rather than spend it make gold IRA accounts a great option.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. This eliminates the need to constantly make deposits. To avoid missing a payment, direct debits can be set up.
Finally, gold is one the most secure investment options available. Because it's not tied to any particular country, its value tends to remain steady. Even in times of economic turmoil gold prices tend to remain stable. This makes it a great investment option to protect your savings from inflation.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
- 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)
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not legal – WSJ
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
The growing trend of gold IRAs
As investors seek to diversify their portfolios while protecting themselves from inflation, the trend towards gold IRAs is on the rise.
An investor can use a gold IRA to manage their assets and not worry about market volatility. Investors can protect themselves from inflation and other possible problems by using the gold IRA.
Physical gold is also a great investment option, as it has unique properties like durability, portability, divisibility, and portability.
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.
This is why the gold IRA has become increasingly popular with investors looking to provide financial security during times of financial uncertainty.
By: Jamie Redman
Title: Bitcoin’s Longevity Explored by Market Strategist Gareth Soloway; Anticipating Gold Surge
Sourced From: news.bitcoin.com/market-expert-gareth-soloway-explores-bitcoins-future-amidst-rising-treasury-yields-and-etf-speculation/
Published Date: Fri, 27 Oct 2023 18:00:55 +0000