In a recent interview with Gareth Soloway, the chief market strategist at verifiedinvesting.com, Soloway suggested that bitcoin might revisit the $15K level should a significant stock market sell-off occur.
Gareth Soloway's Insights
Two days ago, Gareth Soloway of verifiedinvesting.com engaged in a new interview with Michelle Makori, Kitco News' lead anchor and editor-in-chief, to discuss bitcoin's latest trends and its potential future trajectory. Soloway shared insights on his approach to analyzing various data sets for forecasting future trends and drawing conclusions. He highlighted the alignment of the 2017 and 2021 bitcoin bull markets with significant events: the introduction of regulated bitcoin futures in 2017 and the Coinbase initial public offering (IPO) in 2021.
For Soloway, the current bitcoin price level and its recent downturn following specific developments seem logical. He spoke about the outflows from GBTC, noting that "there was a lot of smart money that bought ahead of this news." The substantial discount at which GBTC was trading, he added, was "kind of an extra bonus to them as well." However, Soloway expressed his greater concern regarding a potential bearish view on BTC that could occur if there is a peak in the S&P market or a de-risking occurrence in the broader markets.
Potential Bitcoin Dip
Soloway told Makori, "I do worry that bitcoin could head back down. If we saw a 50% drop in the stock market, I do see bitcoin retesting that $15,000 level." He believes that a significant stock market sell-off could lead to a dip in bitcoin's price.
Soloway's remarks coincided with Deutsche Bank releasing a survey involving over 2,000 respondents, where a third anticipated BTC's value falling below $20K. Additionally, 15% of participants from the Deutsche Bank survey forecasted BTC prices ranging from $40K to $75K by the end of 2024. Concurrently, Arthur Hayes, the ex-boss of Bitmex, predicts BTC could hit lows of $30K to $35K. Soloway is closely monitoring these developments and mentioned that the upcoming three-plus weeks are critical to observe.
Soloway's Long-Term Optimism
Despite these bleak projections, Soloway remains optimistic about bitcoin in the long term. He expressed his intention to increase his BTC holdings if prices continue to decline. In late October, Soloway accurately predicted the approval of spot bitcoin ETFs in early 2024. It remains to be seen if his predictions regarding an equities sell-off and BTC potentially reaching the $15K mark this year will materialize. As of Sunday, Jan. 28, 2024, BTC is maintaining its position above $42K, currently undergoing a phase of consolidation.
Gareth Soloway's prediction of a potential bitcoin dip to $15K has garnered attention in the cryptocurrency community. While some remain skeptical, Soloway's insights and track record in the industry make his perspective noteworthy. As the market unfolds, it will be interesting to see how bitcoin and the broader stock market perform in the coming weeks. What do you think about Gareth Soloway's bitcoin prediction? Let us know your thoughts in the comments section below.
Frequently Asked Questions
How to open a Precious Metal IRA
The first step is to decide if you want an Individual Retirement Account (IRA). To open the account, complete Form 8606. Next, fill out Form 5204. This will determine the type of IRA that you are eligible for. You must complete this form within 60 days of opening your account. Once this has been completed, you can begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
If you opt for a Roth IRA, you must complete Form 8903. Otherwise, it will be the same process as an ordinary IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS says you must be 18 years old and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. You must also contribute regularly. These rules apply to contributions made directly or through employer sponsorship.
You can use a precious metals IRA to invest in gold, silver, palladium, platinum, rhodium, or even platinum. But, you'll only be able to purchase physical bullion. This means you can't trade shares of stock and bonds.
There are two main drawbacks to investing through an IRA in precious metallics. First, they don't have the same liquidity as stocks or bonds. This makes it harder to sell them when needed. Second, they don't generate dividends like stocks and bonds. Therefore, you will lose more money than you gain over time.
How is gold taxed within an IRA?
The fair market value at the time of sale is what determines how much tax you pay on gold sales. When you purchase gold, you don't have to pay any taxes. It is not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
For loans, gold can be used to collateral. When you borrow against your assets, lenders try to find the highest return possible. This often means selling gold. It's not guaranteed that the lender will do it. They may keep it. Or, they may decide to resell the item themselves. You lose potential profits in either case.
If you plan on using your gold as collateral, then you shouldn't lend against it. You should leave it alone if you don't intend to lend against it.
Should You Invest Gold in Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. If you're unsure about which option to choose then consider investing in both.
Gold is a safe investment and can also offer potential returns. Retirement investors will find gold a worthy investment.
Gold is more volatile than most other investments. As a result, its value changes over time.
However, this does not mean that gold should be avoided. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold? It's a tangible asset. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be carried.
You can always access your gold if it is stored in a secure place. You don't have to pay storage fees for 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.
A portion of your savings can be invested in something that doesn't go down in value. Gold tends to rise when the stock markets fall.
Another benefit to investing in gold? You can always sell it. You can easily liquidate your investment, just as with stocks. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Do not buy too much at one time. Begin by buying a few grams. Next, add more as required.
Keep in mind that the goal is not to quickly become wealthy. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Who holds 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 gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you are planning to sell your gold someday, it is necessary that you report its value. This can affect the capital gains taxes that you owe when cashing in on investments.
Consult a financial advisor or accountant to determine your options.
- 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)
- 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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads. Example. And Risk Metrics
A rising trend in gold IRAs
Investors are increasingly turning to gold IRAs as a way to diversify and protect their portfolios from inflation.
The gold IRA allows investors to purchase physical gold bars and bullion. It can be used for tax-free growth and provides an alternative investment option for those concerned about stocks and bonds.
Investors also enjoy the benefits of owning physical gold, which includes its unique properties such as durability, portability, and divisibility.
A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
By: Jamie Redman
Title: Gareth Soloway Predicts Potential Bitcoin Dip to $15K
Sourced From: news.bitcoin.com/market-strategist-gareth-soloway-eyes-15k-bitcoin-in-event-of-stock-market-slide/
Published Date: Sun, 28 Jan 2024 23:00:58 +0000