Standard Chartered's $200K Bitcoin Prediction
Standard Chartered, a global financial institution, has made a bold prediction about the future price of bitcoin. According to the bank's analysts, if spot bitcoin exchange-traded funds (ETFs) are approved by the U.S. Securities and Exchange Commission (SEC), the price of bitcoin could skyrocket to $200,000 in the next year. This approval is seen as a significant milestone in normalizing bitcoin participation by institutional investors, which could lead to substantial inflows of capital and drive up the price of bitcoin.
ETF Approval as a Key Driver
Standard Chartered's Global Research recently published a note discussing the potential impact of ETF approval on bitcoin's price. The note, authored by the bank's head of crypto research, Geoff Kendrick, and precious metal analyst Suki Cooper, highlights the significance of this development.
According to the note, ETF approval has the potential to be a major driver of bitcoin's price upside. The analysts draw a parallel with the introduction of the first U.S.-based gold exchange-traded product (ETP) in 2004. They note that the price of gold increased 4.3 times over a period of seven to eight years as ETP holdings matured. They expect bitcoin to experience similar gains, but over a shorter timeframe of one to two years.
Predicted Price Outlook
Standard Chartered's analysts have a positive outlook on bitcoin's price trajectory. They believe that if spot bitcoin ETFs are approved and inflows materialize as expected, the price of bitcoin could reach $100,000 by the end of 2024. Furthermore, they suggest that by the end of 2025, with an estimated 437,000 to 1.32 million new bitcoins held in spot U.S. ETFs, the price could potentially soar to $200,000. In dollar terms, this would translate to approximately $50-100 billion.
Standard Chartered's Previous Predictions
Standard Chartered has been closely monitoring the cryptocurrency market and has made accurate predictions in the past. Last year, the bank declared that the "crypto winter" had ended, signaling a positive shift in sentiment. In November, they further emphasized their optimism by stating that the "crypto spring" had sprung and that bitcoin could reach $100,000 sooner than anticipated.
What Do You Think?
The prediction of bitcoin reaching $200,000 by 2025 is certainly ambitious. However, Standard Chartered's track record and expertise in the financial industry lend credibility to their forecast. As the cryptocurrency market continues to evolve and gain acceptance, the approval of spot bitcoin ETFs could be a game-changer. Whether or not this prediction will come to fruition remains to be seen, but it is certainly an exciting prospect for bitcoin investors.
Let us know your thoughts in the comments section below. Do you believe bitcoin will reach $200,000 as predicted by Standard Chartered?
Frequently Asked Questions
Should You Get 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 mention that gold is becoming more popular due to its perceived worth and potential return.
These are some important things to remember if your goal is to invest in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. You can save for retirement and not invest your savings in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, be sure to understand your obligations before you purchase gold. Each offer varying degrees of security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. Losing your gold coins could result in you never being able to retrieve them.
If you are thinking of buying gold, do your research. And if you already own gold, ensure you're doing everything possible to protect it.
What is a Precious Metal IRA and How Can You Benefit From It?
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 are “precious metals” because they are hard to find, and therefore very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used to refer to precious metals. Bullion refers actually to the metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This will ensure that you receive annual dividends.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, you pay a small percentage tax on the gains. Plus, you can access your funds whenever you like.
What's the advantage of a Gold IRA?
A gold IRA has many benefits. It's an investment vehicle that lets you diversify your portfolio. You control how much money goes into each account and when it's withdrawn.
Another option is to rollover funds from another retirement account into a IRA with gold. This allows you to easily transition if your retirement is early.
The best part is that you don't need special skills to invest in gold IRAs. They're readily available at almost all banks and brokerage firms. You don't have to worry about penalties or fees when withdrawing money.
There are also drawbacks. Gold is known for being volatile in the past. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Is it for security or long-term planning? Only after you have this information will you make an informed decision.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. Even one ounce is enough. But you won't be able to buy anything else with those funds.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. It can be used to diversify your portfolio. There is much more to gold than meets your eye.
It has been used throughout history as currency and it is still a very popular method of payment. It's sometimes called “the world's oldest money”.
Gold, unlike other paper currencies created by governments is mined directly from the earth. It is very valuable, as it is rare and hard to create.
The price of gold fluctuates based on supply and demand. When the economy is strong, people tend to spend more money, which means fewer people mine gold. The value of gold rises as a consequence.
On the flipside, people may save cash rather than spend it when the economy slows. This causes more gold to be produced, which lowers its value.
It is this reason that gold investing makes sense for businesses and individuals. If you have gold to invest, you will reap the rewards when the economy expands.
In addition to earning interest on your investments, this will allow you to grow your wealth. In addition, you won’t lose any money if gold falls in value.
How does a Gold IRA account work?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
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.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold holdings won't be subject to taxes when you pass away.
Your heirs can inherit your gold and avoid capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. After you do this, you will be granted an IRA custodian. This company acts as a middleman between you and the IRS.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. Minimum deposit required is $1,000 However, you'll receive a higher interest rate if you put in more.
You will pay taxes when you withdraw your gold from your IRA. You will be liable for income taxes and penalties if you take the entire amount.
If you only take out a very small percentage of your income, you may not need to pay tax. There are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. You could end up with severe financial consequences.
How Much of Your IRA Should Include Precious Metals?
When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. They don't require you to be wealthy to invest in them. In fact, there are many ways to make money from gold and silver investments without spending much money.
You may consider buying physical coins such as bullion bars or rounds. It is possible to also purchase shares in companies that make precious metals. Or, you might want to take advantage of an IRA rollover program offered by your retirement plan provider.
You'll still get the benefit of precious metals no matter which country you live in. They are not stocks but offer long-term growth.
Their prices are more volatile than traditional investments. If you decide to sell your investment, you will likely make more than with traditional investments.
What is the best precious-metal to invest?
Answering this question will depend on your willingness to take some risk and the return you seek. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. If you are looking for quick profits, gold might not be the right investment. If patience and time are your priorities, silver is the best investment.
If you don’t desire to become rich quickly, gold may be your best option. Silver might be a better investment option if steady returns are desired over a long period of time.
Statistics
- 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)
- 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)
- 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)
External Links
investopedia.com
finance.yahoo.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Legal – WSJ
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement funds
How To
How to keep physical gold in an IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. There is always the chance of them losing their money due to fluctuations of the gold price.
The alternative is to buy physical gold. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's easier to track how much gold is in your possession. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You are also less likely to be robbed than investing in stocks.
However, there are some disadvantages too. You won't get the bank's interest rates or investment money. Additionally, you won’t be able diversify your holdings. You will remain with the same items you bought. Finally, the tax man might ask questions about where you've put your gold!
BullionVault.com offers more information on buying gold for an IRA.
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By: Kevin Helms
Title: Standard Chartered Predicts Bitcoin Price Could Reach $200,000 with ETF Approval
Sourced From: news.bitcoin.com/standard-chartered-btc-could-hit-200k-in-2025-with-spot-bitcoin-etf-approval/
Published Date: Wed, 10 Jan 2024 01:00:47 +0000
