Market Cap Set to Double, Predicts Bitfinex
Bitfinex market strategists are expressing optimism for bitcoin (BTC) and crypto assets as 2024 approaches. Despite regulatory and reputational challenges, these analysts believe that the crypto market is resilient and will witness an upward trajectory, potentially doubling its market capitalization.
According to the latest Bitfinex Alpha report, the year 2024 is expected to see a potential market cap for the crypto economy of up to $3.2 trillion. The report suggests that the market is currently oscillating between bouts of greed and regulation, indicating a vibrant market phase with mid-bull market highs for bitcoin (BTC).
Institutional Investors and Bitcoin's Favored Status
Bitfinex researchers attribute the positive outlook to the rising interest of institutional investors in crypto assets, particularly bitcoin. They believe that the introduction of spot bitcoin ETFs could act as a catalyst, potentially shifting capital into higher-risk crypto assets. However, Bitfinex strategists maintain that bitcoin is expected to retain its favored status among institutional portfolios, especially in the first half of 2024.
MVRV Metric and Miner Behavior
The report highlights the importance of the MVRV metric, which compares bitcoin's market value to its realized value. It suggests that the market environment in 2024 will mirror the bullish recoveries seen in the mid-2010s. As 2024 is a halving year, miner profitability and behavior become crucial factors. The report indicates a healthy market with ample growth room and limited selling pressure from miners.
Global Adoption and Economic Stability
Bitfinex's Alpha report also emphasizes the adoption of bitcoin in countries like El Salvador and Argentina. It sees this trend as a reflection of a broader global adoption curve that will continue to steepen in 2024. The focus on bitcoin infrastructure in El Salvador and the shift towards decentralized assets in Argentina indicate the growing acceptance of crypto assets as hedges against economic instability.
Increasing Global Cryptocurrency Ownership
Bitfinex's predictive analysis suggests a significant increase in global cryptocurrency ownership, potentially reaching between 850 and 950 million individuals by 2024. This surge in ownership highlights the growing acceptance and integration of crypto assets, like BTC, into mainstream economic activities.
The report concludes that the broader macroeconomic outlook for 2024 indicates stabilizing wage growth and manageable inflation levels. Despite geopolitical tensions and economic variabilities, a moderated inflation rate and a more efficient global economy are expected to contribute to a generally stable market conducive to the growth of crypto assets.
What are your thoughts on Bitfinex's Alpha report? Share your opinions in the comments section below.
Frequently Asked Questions
Is gold a good investment IRA option?
For anyone who wants to save some money, gold can be a good investment. You can diversify your portfolio with gold. But gold is not all that it seems.
It has been used throughout the history of currency and remains a popular payment method. It is sometimes called the “oldest currency in the world”.
But unlike paper currencies, which governments create, gold is mined out of the earth. Because it is rare and difficult to make, it is extremely valuable.
The supply-demand relationship determines the gold price. The strength of the economy means people spend more, and so, there is less demand for gold. The value of gold rises as a consequence.
On the other hand, people will save cash when the economy slows and not spend it. This leads to more gold being produced which decreases its value.
This is why investing in gold makes sense for individuals and businesses. If you invest in gold, you'll benefit whenever the economy grows.
You'll also earn interest on your investments, which helps you grow your wealth. If gold's value falls, you don't have to lose any of your investments.
What are the pros and cons of a gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. This type of investment has its downsides.
You may lose all your accumulated savings if you take too much out of your IRA. Also, the IRS may not allow you to make withdrawals from your IRA until you're 59 1/2 years old. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
A disadvantage to managing your IRA is the fact that fees must be paid. Most banks charge 0.5% to 2.0% per annum. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer your money to be kept out of a bank, then you will need insurance. Insurance companies will usually require that you have at least $500,000. You may be required by some insurers to purchase insurance that covers losses as high as $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 restrict the amount you can own in gold. Others let you choose your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Physical gold is more expensive than gold futures contracts. Futures contracts allow you to buy gold with more flexibility. You can set up futures contracts with a fixed expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy does NOT include theft protection and loss due to fire or flood. It does provide coverage for damage from natural disasters, however. You may consider adding additional coverage if you live in an area at high risk.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs are not covered by insurance. In addition, most banks charge around $25-$40 per month for safekeeping.
You must first contact a qualified custodian before you open a gold IRA. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians are not allowed to sell your assets. Instead, they must maintain them for as long a time as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. You should also specify how much you want to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. After reviewing your application, the company will send you a confirmation mail.
A financial planner is a good idea when opening a gold IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
What is the cost of gold IRA fees
The Individual Retirement Account (IRA), fee is $6 per monthly. This includes account maintenance and any investment costs.
If you wish to diversify your portfolio, you may need to pay additional fees. The type of IRA you choose will determine the fees. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Most providers also charge an annual management fee. These fees range between 0% and 1 percent. The average rate per year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.
How much gold do you need in your portfolio?
The amount that you want to invest will dictate how much money it takes. A small investment of $5k-10k would be a great option if you are looking to start small. As your business grows, you might consider renting out office space or desks. This will allow you to pay rent monthly, and not worry about it all at once. Rent is only paid per month.
You also need to consider what type of business you will run. My website design company charges clients $1000-2000 per month depending on the order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. So you might only get paid once every 6 months or so.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
Who owns the gold in a Gold IRA?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to 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.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement funds
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
cftc.gov
How To
Investing in gold vs. investing in stocks
Gold investing as an investment vehicle can seem extremely risky these days. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief is based on the fact that gold prices are being driven down by global economic conditions. They believe they would lose their money if they invested gold. In reality, though, gold investment can offer significant benefits. Below we'll look at some of them.
Gold is one of the oldest forms of currency known to man. There are thousands of records that show gold was used over the years. People around the world have used it as a store of value. It continues to be used in South Africa, as a way of paying their citizens.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. It is important to determine the price per gram you are willing and able to pay for gold bullion. If you don’t know what the current market price is, you can always call a local jewelry store and ask them their opinion.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So, although gold prices have declined in recent years, the cost of producing it has not changed.
The amount of gold that you are planning to purchase is another important consideration when deciding whether or not gold should be bought. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. It is worth considering if you intend to use it for long-term investment. Selling your gold at a higher value than what you bought can help you make money.
We hope this article has given you an improved understanding of gold investment tools. We recommend you do your research before making any final decisions. Only then will you be able to make an informed decision.
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By: Jamie Redman
Title: Bitfinex Analysts Optimistic About Bitcoin and Crypto Assets in 2024
Sourced From: news.bitcoin.com/2024-crypto-economy-forecast-bitfinex-researchers-predict-3-2-trillion-market-cap-amid-rising-adoption/
Published Date: Fri, 22 Dec 2023 23:30:46 +0000
