Rogue SEC Tweet Sends Bitcoin Prices Soaring
Bitcoin's value experienced a turbulent Tuesday, largely due to a rogue tweet from the U.S. Securities and Exchange Commission (SEC), mistakenly proclaiming the green light for all spot bitcoin exchange-traded funds (ETFs). This erroneous message from the official SEC Twitter account sparked a rapid increase in bitcoin's price, soaring close to $48,000 per unit.
Market Recognition of False Announcement Leads to Price Drop
However, this surge was short-lived as the price promptly dropped to around $45,000 once the market recognized the false nature of the announcement. This event stirred unease among investors and crypto enthusiasts, with some drawing parallels to a pump-and-dump strategy. Tennessee Senator Bill Hagerty demanded clarity from the SEC, pointing to possible market manipulation.
Hagerty stated:
"Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened. This is unacceptable."
Bitcoin's Price Volatility Amidst ETF Speculation
Before this downturn, there was a noticeable upward movement, signifying strong buying interest during this timeframe. The price encountered a ceiling near $47,897, peaked, and then plunged dramatically. Currently, bitcoin's value is striving to stabilize above the $46,000 zone as of 6:45 p.m. Eastern Time. The anticipation surrounding the endorsement of a spot bitcoin ETF has injected considerable volatility, as traders respond to each update pertaining to its potential sanction. A similar situation unfolded when Cointelegraph inaccurately reported the approval of Blackrock's spot bitcoin ETF.
Market Dynamics and Optimism Surrounding Bitcoin
The fluctuation in bitcoin's price on Jan. 9, 2024, mirrors the intricate dynamics of market responses to regulatory developments (both accurate and spurious), expectations of key happenings like the spot BTC ETF sanction, trends in institutional investment, and the overall market mood. Despite these ups and downs, optimism persists around bitcoin, with its market capitalization eclipsing major entities such as Berkshire Hathaway in late 2023. Some believe that the sanction of a spot bitcoin ETF could significantly sway the market, likely boosting institutional involvement and enhancing liquidity.
Awaited Approval and Preparations in the Bitcoin Sector
Ahead of this approval, bitcoin had already seen notable price growth, surging over 160% within a year. The sector has been preparing for this event, and its occurrence might trigger diverse reactions, particularly following two previous misleading announcements.
Impact of Fake SEC Announcement on Bitcoin Market
Amid the SEC's recent fake announcement, $60.58 million in BTC long positions were liquidated within the past four hours according to coinglass.com stats. Moreover, the SEC is trending on the social media platform X with more than 172,000 posts about the subject trending at 7 p.m. Eastern Time.
What are your thoughts on the rogue tweet from the SEC on Tuesday and how it impacted bitcoin's market? Share your opinions in the comments section below.
Frequently Asked Questions
Should You Buy Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Experts think this could change quickly. Experts predict that gold prices will rise sharply in the wake of another global financial collapse.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
Here are some things to consider if you're considering investing in gold.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save enough money to retire without investing in gold. The added protection that gold provides when you retire is a good option.
- Second, be sure to understand your obligations before you purchase gold. Each type offers varying levels and levels of security.
- Remember that gold is not as safe as a bank account. Losing your gold coins could result in you never being able to retrieve them.
You should do your research before buying gold. You should also ensure that you do everything you can to protect your gold.
What should I pay into my Roth IRA
Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, your principal (the deposit amount originally made) is not transferable. You cannot withdraw more than the original amount you contributed. If you take out more than the initial contribution, you must pay tax.
The second rule states that income taxes must be paid before you can withdraw earnings. Withdrawing your earnings will result in you paying taxes. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's further assume you earn $10,000 annually after contributing. The federal income tax on your earnings would amount to $3,500. That leaves you with only $6,500 left. The amount you can withdraw is limited to the original contribution.
You would still owe tax on $1,500 if you took out $4,000 of your earnings. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs don't allow you deduct contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
What precious metals could you invest in to retire?
Gold and silver are the best precious metal investments. They're both easy to buy and sell and have been around forever. Consider adding them to the list if you're looking to diversify and expand your portfolio.
Gold: The oldest form of currency known to man is gold. It is very stable and secure. This makes it a good option to preserve wealth in uncertain times.
Silver: The popularity of silver has always been a concern for investors. It's a great option for those who want stability. Unlike gold, silver tends to go up instead of down.
Platinium is another precious metal that is becoming increasingly popular. It's like silver or gold in that it is durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium: Rhodium can be used in catalytic convertors. It is also used to make jewelry. It is relatively affordable when compared to other types.
Palladium: Palladium is similar to platinum, but it's less rare. It's also more accessible. It is a preferred choice among investors who are looking to add precious materials to their portfolios.
Do You Need to Open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. There is no way to recover money that you have invested in precious metals. 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. You would probably get more if you sold them today than you paid when they were first created.
Choose a reputable company with competitive rates and quality products if you are looking to open an IRA. It is also a smart idea to use a third-party trustee who will help you have access to your assets at all times.
When you open an account, keep in mind that you won't receive any returns until your retirement. Remember the future.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
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
cftc.gov
wsj.com
- 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
How To
Tips for Investing In Gold
Investing in Gold is a popular investment strategy. Because investing in gold has many benefits. There are many ways to invest gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
Before you purchase any type or gold, here are some things to think about.
- First, you must check whether your country allows you to own gold. If the answer is yes, you can go ahead. You might also consider buying gold in foreign countries.
- You should also know the type of gold coin that you desire. You have the option of choosing yellow, white, or rose gold.
- Third, consider the cost of gold. It is best to start small and work your way up. You should diversify your portfolio when buying gold. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- You should also remember that gold prices can change often. It is important to stay up-to-date with the latest trends.
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By: Jamie Redman
Title: False Spot ETF Approval Post Causes Chaos in Bitcoin Markets
Sourced From: news.bitcoin.com/turmoil-in-crypto-market-misleading-sec-post-triggers-significant-bitcoin-volatility/
Published Date: Wed, 10 Jan 2024 00:11:00 +0000
