Galaxy Digital CEO Mike Novogratz expects the price of bitcoin to be significantly higher when the U.S. Securities and Exchange Commission (SEC) approves spot bitcoin exchange-traded funds (ETFs). "We will see a pretty successful shift of psychology … when the government says 'you are allowed to buy bitcoin,' " he described.
Mike Novogratz's Bullish Bitcoin Prediction
Galaxy Digital CEO Michael Novogratz explained why the price of bitcoin is poised to rise "significantly higher" in an interview on Bloomberg TV Wednesday. His bullish prediction hinges on the potential approval of the first U.S. spot bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC).
Novogratz detailed: "There's a bunch of good things happening for bitcoin. We are going to get an ETF. Right now there's a lot of anticipation. Some of that is built into the price." He added that when you actually get a spot bitcoin ETF announcement, which he believes to be two months before it starts trading, Blackrock, Ark, Fidelity, as well as his own firm will "have their sales forces out convincing people to adopt bitcoin." The Galaxy Digital boss emphasized:
The price is going to be significantly higher especially at the time when the Fed is probably cutting rates.
"So, could we go to old highs by this time next year? Of course, we could," he added.
Potential for Bitcoin to Surpass All-Time High
Regarding whether the price of bitcoin could rise higher than its all-time high by this time next year, Novogratz pointed out: "Remember, prices are set on the margin, and there aren't that many sellers of bitcoin. We're going to have the halving next year which means that the daily supply or inflation rate gets cut in half, so you are really setting up for a wonderful story." Moreover, he noted: "We're also going into an election year, and that uncertainty should help bitcoin in the fact that the U.S., Europe, and Japan still can't come close to being fiscally responsible."
Impact of Spot Bitcoin ETFs
Once spot bitcoin ETFs enter the market, Novogratz predicted that billions of dollars should flow into the ETF space, if not more. He emphasized:
That's all new money. We will see a pretty successful shift of psychology … when the government says 'you are allowed to buy bitcoin' and institutions say 'this is great.'
SEC Chairman Gary Gensler recently stated that the securities regulator is considering between eight and 10 spot bitcoin ETF applications. Many expect the SEC to approve multiple spot bitcoin ETFs at once early next year.
Do you agree with Galaxy Digital CEO Mike Novogratz's prediction? Let us know in the comments section below.
Frequently Asked Questions
How much gold should your portfolio contain?
The amount of capital that you require will determine how much money you can make. Start small with $5k-10k. As you grow, you can move into an office and rent out desks. You don't need to worry about paying rent every month. It's only one monthly payment.
It is also important to decide what kind of business you want to run. My website design company charges clients $1000-2000 per month depending on the order. So if you do this kind of thing, you need to consider how much income you expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. This means that you may only be paid once every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I recommend starting with $1k-$2k of gold and growing from there.
Should You Open a Precious Metal IRA?
Precious metals are not insured. This is the most important fact to know before you open an IRA account. There is no way to recover money that you have invested in precious metals. All your investments can be lost due to theft, fire or flood.
Investing in physical gold and silver coins is the best way to protect yourself from this type of loss. These items have been around for thousands of years and represent real value that cannot be lost. 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.
When you open an account, keep in mind that you won't receive any returns until your retirement. Keep your eyes open for the future.
Who has the gold in a IRA gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject 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.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
You will need to declare the value of gold if you intend on selling it one day. This could impact how capital gains taxes you owe for cash investments.
To find out what options you have, consult an accountant or financial planner.
How does a gold IRA work?
You can purchase gold bullion coins in physical form at any moment. To start investing in gold, it doesn't matter if you are retired.
An IRA lets you keep your gold for life. You won't have to pay taxes on your gold investments when you die.
Your heirs can inherit your gold and avoid capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
First, an individual retirement account will be set up to allow you to open a golden IRA. After you have done this, an IRA custodian will be assigned to you. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.
Taxes will be charged on gold you have withdrawn from an IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. However, there are exceptions. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.
It's best not to take out more 50% of your total IRA investments each year. If you do, you could face severe financial consequences.
Can I buy gold using my self-directed IRA
You can purchase gold with your self-directed IRA, but you must first open an account at a brokerage firm like TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts are financial instruments that are based on gold's price. You can speculate on future prices, but not own the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
How much should your IRA include precious metals
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. You don't have to be rich to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might also be interested in buying physical coins, such bullion rounds or bars. Shares in precious metals-producing companies could be an option. You might also want to use an IRA rollover program offered through your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. They are not stocks but offer long-term growth.
And unlike traditional investments, they tend to increase in value over time. You'll probably make more money if your investment is sold down the line than traditional investments.
What is the best precious-metal to invest?
This question depends on how risky you are willing to take, and what return you want. Gold is a traditional haven investment. However, it is not always the most profitable. If you are looking for quick profits, gold might not be the right investment. If you have time and patience, you should consider investing in silver instead.
If you don’t want to be rich fast, gold might be the right choice. Silver may be a better option for investors who want long-term steady returns.
- 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)
- 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)
- 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)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads, Example, and Risk Metrics
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. It is essential to save enough money each year in order to maintain a steady growth rate.
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 the freedom to contribute without having to pay tax on your earnings until they are withdrawn. They are a great option for those who do not have access to employer matching money.
It's important to save regularly and over time. If you don't contribute the maximum amount, you will miss any tax benefits.
By: Kevin Helms
Title: Novogratz Expects Bitcoin Price to Be ‘Significantly Higher’ After SEC Approves Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/novogratz-expects-bitcoin-price-to-be-significantly-higher-after-sec-approves-spot-bitcoin-etfs/
Published Date: Sat, 02 Dec 2023 03:00:31 +0000