Bitcoin Hits $44K Milestone, Outperforming Meta and Berkshire Hathaway
On Tuesday, the price of bitcoin surpassed $44,000, reaching a peak of $44,011 per unit. Over the past month, the leading cryptocurrency has experienced a surge of more than 24%, with a 17% increase in the last two weeks alone.
Bitcoin Breaks Through $44K Barrier, Reaching Pre-Terra Crash Levels
This week, bitcoin has been on an impressive upward trend, rising by 14% against the U.S. dollar. On December 5th, Tuesday, BTC reached its highest point at 12:15 p.m. Eastern Time, hitting $44,011. The trading volume for BTC currently stands at $31.68 billion, which is twice as high as the previous day's volume. Throughout the day, bitcoin's trading range fluctuated between $41,453 and slightly over $44,000.
These price levels haven't been seen since April 6, 2022, before the Terra market collapse. Despite a trading volume of $31 billion, the dominant trading pairs for BTC are USDT, FDUSD, USD, USDC, and KRW. The top exchanges for global BTC trading volume today include major platforms like Binance, Kraken, Coinbase, and Bitfinex.
Bitcoin's Trading Volume Ranks Second, Surpassing Meta
On Tuesday, BTC's trading volume ranked second, only behind the stablecoin tether (USDT). The recent surge in cryptocurrency prices has led to the liquidation of $160 million in short positions within the last 24 hours. Out of this amount, approximately $91.34 million came from bitcoin (BTC) short positions. The rise of BTC has increased its market dominance to 51.3%, with a combined value of over $1.65 trillion across more than 10,000 assets.
In addition, bitcoin's market capitalization has surpassed Meta and Berkshire Hathaway, making it the ninth-largest asset in terms of market valuation. This list includes companies, precious metals, and exchange-traded funds.
What are your thoughts on bitcoin reaching the $44K milestone on Tuesday? Let us know in the comments section below.
Frequently Asked Questions
Which precious metal is best to invest in?
This question depends on how risky you are willing to take, and what return you want. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. For example, if you need a quick profit, gold may not be for you. If you have the patience to wait, then you might consider investing in silver.
If you're not looking to make quick money, gold is probably your best choice. Silver might be a better investment option if steady returns are desired over a long period of time.
How much gold should your portfolio contain?
The amount of capital that you require will determine how much money you can make. A small investment of $5k-10k would be a great option if you are looking to start small. As your business grows, you might consider renting out office space or desks. This will allow you to pay rent monthly, and not worry about it all at once. Rent is only paid per month.
Consider what type of business your company will be running. In my case, we charge clients between $1000-2000/month, depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. So you might only get paid once every 6 months or so.
Decide what kind of income do you want before you calculate how much gold is needed.
I suggest starting with $1k-2k gold and building from there.
Can I hold a gold ETF in a Roth IRA?
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. A Employee Stock Ownership Plan, or ESOP, is another way to invest publicly traded companies.
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
A Individual Retirement Annuity (IRA), is also available. An IRA allows for you to make regular income payments during your life. Contributions to IRAs don't have to be taxable
What is the tax on gold in an IRA
The fair market value at the time of sale is what determines how much tax you pay on gold sales. You don't have tax to pay when you buy or sell gold. It is not considered income. If you sell it later you will have a taxable profit if the price goes down.
Gold can be used as collateral for loans. Lenders seek to get the best return when you borrow against your assets. This often means selling gold. However, there is no guarantee that the lender would do this. They might keep it. Or, they may decide to resell the item themselves. The bottom line is that you could lose potential profit in any case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It is better to leave it alone.
How much should precious metals be included in your portfolio?
To answer this question, we must first understand what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. This makes them valuable in investment and trading. Gold is currently the most widely traded precious metal.
There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also unaffected significantly by inflation and Deflation.
In general, all precious metals have a tendency to go up with the market. But they don't always move in tandem with one another. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
However, when an economy is strong, the reverse effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. They are more rare, so they become more expensive and less valuable.
Diversifying across precious metals is a great way to maximize your investment returns. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What is the value of a gold IRA
There are many benefits to a gold IRA. It's an investment vehicle that allows you to diversify your portfolio. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This will allow you to transition easily if it is your decision to retire early.
The best part? You don’t need to have any special skills to invest into gold IRAs. They are offered by most banks and brokerage companies. Withdrawals can happen automatically, without any fees or penalties.
There are, however, some drawbacks. Gold is historically volatile. It is important to understand why you are investing in gold. Is it for growth or safety? Is it for insurance purposes or a long-term strategy? Only by knowing the answer, you will be able to make an informed choice.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce will not be sufficient to meet all your requirements. You may need several ounces, depending on what you intend to do with your precious gold.
You don't need to have a lot of gold if you are selling it. Even one ounce is enough. However, you will not be able buy any other items with those funds.
What are the benefits to having a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It will be tax-deferred up until the time you withdraw it. You are in complete control of how much you take out each fiscal year. There are many types and types of IRAs. Some are better suited for people who want to save for college expenses. Others are made for investors seeking higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. For people who would rather invest than spend their money, gold IRA accounts are a good option.
Another benefit to owning IRA gold is the ability to withdraw automatically. This means that you don't need to worry about making monthly deposits. To avoid missing a payment, direct debits can be set up.
Gold is one of today's most safest investments. Its value is stable because it's not tied with any one country. Even in times of economic turmoil, gold prices tend not to fluctuate. Therefore, gold is often considered a good investment to protect your savings against inflation.
Statistics
- 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)
- 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)
- 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)
