Renowned CNBC Mad Money show host, Jim Cramer, has issued a warning regarding a potential selloff in Bitcoin. While advising caution to investors interested in Bitcoin and the recently launched spot Bitcoin exchange-traded funds (ETFs), Cramer stated, "I don't hold the same strong opposition to these new investment vehicles as Gary Gensler does… Bitcoin has been in existence for 15 years, it is relatively well-established, and I don't want to prevent anyone from speculating in this asset, as long as they conduct their research."
Jim Cramer's Bitcoin Price Outlook
This week, Jim Cramer, the host of Mad Money, shared his insights on the future price of Bitcoin, with a particular focus on how the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) could impact its trajectory. Cramer, a former hedge fund manager and co-founder of Thestreet.com, a financial news and literacy website, is closely monitoring the developments in the cryptocurrency market.
The price of Bitcoin experienced a surge above $47,000 in anticipation of the SEC's approval of spot Bitcoin ETFs. However, it subsequently dropped to a low of nearly $40,000 on Friday following the approval. At the time of writing, Bitcoin has slightly recovered and is currently trading at $41,589. Discussing the decline in Bitcoin's price, Cramer posted the following on the social media platform, X, on Thursday:
"Nasty beginning to the Bitcoin selloff."
Cramer added, "Someone will likely attempt to stabilize the price here, but as we mentioned last night, you can't expect an asset to double in value by hundreds of billions of dollars in anticipation of an ETF and then witness minimal participation." In a subsequent post on Friday, he further commented, "It was expected that there would be a resistance level for Bitcoin here. Let them try to maintain it for a couple of days."
Several individuals challenged Cramer's statement, arguing that the launch of spot Bitcoin ETFs was far from being a failure. One person wrote, "It was the most successful ETF launch in history." Others highlighted that Bitcoin ETFs had already surpassed silver to become the second-largest commodity ETF, with significant inflows within just a few days.
Many users of X view Cramer's bearish statements as a bullish indicator for Bitcoin's price. The "Cramer effect" has become a popular meme in the crypto industry, with many observing that Bitcoin often moves in the opposite direction to Cramer's predictions. If he is bullish, a bearish swing can be expected, and vice versa.
While maintaining his skepticism, Cramer stated on Wednesday that he is not categorically against investing in Bitcoin. The Mad Money host referred to Jamie Dimon, CEO of JPMorgan Chase, who recently stated that he won't dictate people's investment choices but personally advises staying away from Bitcoin.
Cramer described the situation as "caveat emptor," drawing inspiration from Dimon's stance. He highlighted, "You can make your own decision regarding spot Bitcoin ETPs [exchange-traded products]. I merely want to ensure that you are aware of what exactly you are investing in and how little money went into these funds compared to the significant increase in the price of Bitcoin."
Referring to SEC Chair Gary Gensler's statement that the approval of spot Bitcoin ETFs does not indicate an endorsement of Bitcoin, Cramer emphasized, "I don't hold the same strong opposition to these new investment vehicles as Gary Gensler does… Bitcoin has been in existence for 15 years, it is relatively well-established, and I don't want to prevent anyone from speculating in this asset, as long as they conduct their research. Of course, I'm not entirely certain what kind of research would be necessary, but that's not my concern."
Last week, Cramer mentioned that Bitcoin is reaching its peak. The week before, he expressed his belief that Bitcoin cannot be eliminated and described it as a "technological marvel" that is here to stay.
What are your thoughts on Jim Cramer's advice and warnings regarding Bitcoin? Share your opinions in the comments section below.
Frequently Asked Questions
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An Individual Retirement Account (IRA) fee is $6 per month. This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
To diversify your portfolio you might need to pay additional charges. These fees will vary depending upon the type of IRA chosen. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
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How much money should my Roth IRA be funded?
Roth IRAs can be used to save taxes on your retirement funds. You cannot withdraw funds from these accounts until you reach 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the original deposit amount) cannot be touched. This means that you can't take out more money than you originally contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that your earnings cannot be withheld without income tax. Withdrawing your earnings will result in you paying taxes. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. On the earnings, you would be responsible for $3,500 federal income taxes. The remaining $6,500 is yours. Because you can only withdraw what you have initially contributed, this is all you can take out.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. 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: Roth IRAs that are traditional and Roth. Traditional IRAs allow you to deduct pretax contributions from your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. Unlike a traditional IRA, there is no minimum withdrawal requirement. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
What proportion of your portfolio should you have in precious metals
Before we can answer this question, it is important to understand what precious metals actually are. Precious Metals are elements that have a very high relative value to other commodities. This makes them highly valuable for both investment and trading. Gold is currently the most widely traded precious metal.
There are also many other precious metals such as platinum and silver. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is also unaffected significantly by inflation and Deflation.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, the prices of precious metals do not always move in sync with one another. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors expect lower interest rates which makes bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. They become less expensive and have a lower value because they are limited.
You must therefore diversify your investments in precious metals to reap the maximum profits. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
Do you need to open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. You cannot recover any money you have invested. This includes all investments that are lost to theft, fire, flood, or other causes.
This type of loss can be avoided by investing in physical silver and gold coins. These items can be lost because they have real value and have been around for thousands years. If you were to offer them for sale today, they would likely fetch you more than you paid when you bought them.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. You should also consider using a third party custodian to protect your assets and give you access at any time.
If you decide to open an account, remember that you won't see any returns until after you retire. Do not forget about the future!
What is a Precious Metal IRA (IRA)?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These metals are known as “precious” because they are rare and extremely valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Precious metals are often referred to as “bullion.” Bullion refers actually to the metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This means you'll receive dividends every year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, your gains are subject to a small tax. Plus, you get free access to your funds whenever you want.
What precious metals could you invest in to retire?
Silver and gold are two of the most valuable precious metals. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It is very stable and secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has been a favorite among investors for years. It is an excellent choice for investors who wish to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
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 counterparts.
Rhodium: The catalytic converters use Rhodium. It's also used in jewelry making. It is also very affordable in comparison to other types.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also much more affordable. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
finance.yahoo.com
investopedia.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
cftc.gov
How To
Guidelines for Gold Roth IRA
The best way to invest for retirement is by starting early. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. To ensure sufficient growth, it is vital that you contribute enough each year.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles allow you to make contributions without paying taxes on earnings until they are withdrawn from the account. These savings vehicles are great for those who don't have access or can't get employer matching funds.
Save regularly and continue to save over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
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By: Kevin Helms
Title: Mad Money Host Jim Cramer Predicts Start of Bitcoin Selloff
Sourced From: news.bitcoin.com/mad-money-host-jim-cramer-sees-nasty-beginning-to-bitcoin-selloff/
Published Date: Sun, 21 Jan 2024 01:00:08 +0000
