Veteran trader Peter Brandt recently revealed on social media that he has taken a short position on Ethereum (ETH), the second-largest cryptocurrency by market cap. Brandt shared a technical chart with his 707,000 followers to explain his strategy.
Ethereum's Price Surge and Key Factors
Since the beginning of 2023, Ethereum's value has increased by 85% against the US dollar. This surge in price can be attributed to several factors. Firstly, there have been talks in the crypto community about a potential approval of a spot Ethereum exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC), which has created a bullish sentiment in the market. Additionally, onchain analytics indicate a significant increase in ETH accumulation by major holders, indicating a positive shift in market dynamics.
ETH's Recent Performance
In the past two weeks, however, Ethereum's upward momentum has slowed down, experiencing a minor 1.4% dip in value against the US dollar. On December 18, 2023, Peter Brandt shared an ETH/USD chart from Tradingview, stating that if the rising wedge pattern in Ethereum follows the script, the target price would be $1,000, then $650.
Brandt further expressed his sentiment by revealing that he has shorted ETH and has a protective break-even stop in place. Shorting involves betting against an asset, in this case, ETH, and anticipating a decline in its value to profit from the short position. Other industry experts, including Adamant Capital founder Tuur Demeester and Colin Talks Crypto, have also expressed bearish views on Ethereum's performance against Bitcoin (BTC).
Potential Reversal and Bearish Pattern
The ETH chart does show signs of a potential reversal, although the pattern is not fully formed yet. Currently, there is a bearish pattern characterized by consistently flat lower highs and a series of lower lows, indicating that sellers are more dominant than buyers. However, it is worth noting that crypto assets often experience low trading volume during holidays, which bears may take advantage of. Therefore, the descending triangle formation in Ether could be a temporary phenomenon.
Peter Brandt's Views on Crypto Assets
Peter Brandt has been vocal about his views on crypto assets for a long time. In the past, he has labeled the Bitcoin halving as a "non-event" and advocated for an increase in the benchmark interest rate by the US Federal Reserve. He has also expressed his belief that Bitcoin is a legacy coin while dismissing most other cryptocurrencies as "make-believe crypto wannabees."
What are your thoughts on Peter Brandt shorting Ethereum? Do you agree with his views? Share your opinions in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA
It is important to decide if you would like an Individual Retirement Account (IRA). Once you have decided to open an Individual Retirement Account (IRA), you will need to complete Form 806. To determine which type of IRA you qualify for, you will need to fill out Form 5204. You must complete this form within 60 days of opening your account. You can then start investing once you have this completed. You might also be able to contribute directly from the paycheck through payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will be identical to an ordinary IRA.
To qualify for a precious-metals IRA, you’ll need to meet some requirements. You must be at least 18 years of age and have earned income to qualify for a precious metals IRA. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. And, you have to make contributions regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, physical bullion will not be available for purchase. This means you won’t be allowed to trade shares of stock or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option can be provided by some IRA companies.
There are two main drawbacks to investing through an IRA in precious metallics. First, they aren’t as liquid than stocks and bonds. It’s also more difficult to sell them when they are needed. Second, they don’t produce dividends like stocks or bonds. Therefore, you will lose money over time and not gain it.
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 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 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.
A financial planner or accountant should be consulted to discuss your options.
How does a gold IRA account work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
Physical gold bullion coin can be purchased at any time. You don’t have a retirement date to invest in gold.
An IRA allows you to keep your gold forever. Your gold holdings will not be subject to tax when you are gone.
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.
To open a IRA for gold, you must first create an individual retirement plan (IRA). Once you’ve done so, you’ll be given an IRA custodian. This company acts as an intermediary between you and IRS.
Your gold IRA custodian will handle the paperwork and submit the necessary forms to the IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. The minimum deposit required for gold bullion coins purchase is $1,000 If you make more, however, you will get a higher interest rate.
You’ll have to pay taxes if you take your gold out of your IRA. If you’re withdrawing the entire balance, you’ll owe income taxes plus a 10 percent penalty.
However, if you only take out a small percentage, you may not have to pay taxes. There are some exceptions, though. For example, taking out 30% or more of your total IRA assets, you’ll owe federal income taxes plus a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. If you do, you could face severe financial consequences.
Should You Open a Precious Metal IRA?
Before opening an IRA, it is important to understand that precious metals aren’t covered by insurance. If you lose money in your investment, nothing can be done to recover it. This includes any loss of investments from theft, fire, flood or other circumstances.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items are timeless and have a lifetime value. You would probably get more if you sold them today than you paid when they were first created.
You should choose a reputable firm that offers competitive rates. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
You won’t get any returns until you retire if you open an account. Remember the future.
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 those elements that have an extremely high value relative to other commodities. This makes them highly valuable for both investment and trading. Gold is by far the most common precious metal traded today.
There are also many other precious metals such as platinum and silver. The price for gold is subject to fluctuations, but stays relatively stable in times 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. But they don’t always move in tandem with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rates which makes bonds less appealing investments.
However, when an economy is strong, the reverse 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.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Statistics
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (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)
- 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)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement plans
bbb.org
finance.yahoo.com
cftc.gov
How To
The best way online to buy gold or silver
To buy gold, you must first understand how it works. The precious metal gold is similar to platinum. It’s rare and often used to make money due its resistance and durability to corrosion. It’s hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They are not exchangeable in any currency exchange system. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Each dollar spent by the buyer is worth 1 gram.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. You have a few options to choose from if you are looking to buy gold directly through a dealer. First, you can visit your local coin store. Another option is to go through a reputable site like eBay. You might also consider buying gold from an online private seller.
Individuals who sell gold at wholesale and retail prices are called private sellers. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. Private sellers will typically get you less than a coin shop, eBay or other online retailers. This option is often a great one for investors in gold, as it gives you greater control over the item’s value.
You can also invest in gold physical. Physical gold is much easier to store than paper certificates, but you still have to worry about storing it safely. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank can provide you with a loan to cover the amount you wish to invest in gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks tend to charge higher interest rates, while pawnshops are typically lower.
You can also ask for help to purchase gold. Selling gold is also easy. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
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By: Jamie Redman
Title: Peter Brandt Takes Short Position on Ethereum (ETH)
Sourced From: news.bitcoin.com/veteran-trader-peter-brandt-shorts-ethereum-signaling-potential-downturn/
Published Date: Tue, 19 Dec 2023 16:30:06 +0000
