JPMorgan's Bitcoin Price Forecast
Global investment bank JPMorgan has provided its insights into the cryptocurrency market, specifically addressing the recent bitcoin selloff. The price of BTC dropped from above $47,000 before the approval of the spot bitcoin exchange-traded fund (ETF) to below $39,000 this week.
One of the factors contributing to the bitcoin selloff is the significant outflows from Grayscale's bitcoin trust (GBTC). Following the approval by the U.S. Securities and Exchange Commission (SEC) on January 10, GBTC converted into a spot bitcoin ETF. Since January 12, GBTC's bitcoin holdings have decreased by 114,367.39 BTC, equivalent to $4.77 billion based on BTC exchange rates as of January 27.
JPMorgan strategist Nikolaos Panigirtzoglou commented on Thursday that $4.3 billion has already been withdrawn from GBTC, indicating that most of the profit-taking has already occurred. He further stated that this implies the downward pressure on bitcoin from this source should now be largely behind us.
Panigirtzoglou previously predicted that $3 billion would exit GBTC, as it had been estimated that up to $3 billion had been invested in GBTC in the secondary market during 2023 to take advantage of the discount to NAV. He explained that as this $3 billion leaves the bitcoin space through GBTC profit-taking, it would put downward pressure on bitcoin's price.
John Todaro from Needham also shares a similar view, noting that Thursday experienced one of the lowest net outflows from GBTC and marked the third consecutive day of declining outflows. This could signify the beginning of a slowdown in redemptions. Todaro emphasized that the two largest drivers of selling, namely outflows driven by the FTX estate and arbitrage funds, are nearly completed.
Another JPMorgan analyst, Kenneth Worthington, believes that the catalyst of bitcoin ETFs that has propelled the ecosystem out of its winter will disappoint market participants. In light of this, the investment bank downgraded Coinbase stock (Nasdaq: COIN) from Neutral to Underweight.
What are your thoughts on JPMorgan analyst Nikolaos Panigirtzoglou's prediction regarding the price of bitcoin? Share your opinions in the comments section below.
Frequently Asked Questions
How much do gold IRA fees cost?
$6 per month is the Individual Retirement Account Fee (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
You may have to pay additional fees if you want to diversify your portfolio. The type of IRA you choose will determine the fees. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
Most providers also charge an annual management fee. These fees range between 0% and 1 percent. The average rate is.25% annually. These rates are often waived if a broker like TD Ameritrade is used.
What tax is gold subject in an IRA
The tax on the sale of gold is based on its fair market value when sold. If you buy gold, there are no taxes. It's not considered income. If you decide to sell it later, there will be a taxable gain if its price rises.
You can use gold as collateral to secure loans. Lenders try to maximize the return on loans that you take against your assets. In the case of gold, this usually means selling it. It's not guaranteed that the lender will do it. They might keep it. They might decide that they want to resell it. You lose potential profits in either case.
You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.
Is it possible to hold a gold ETF within a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
An IRA traditional allows both employees and employers to contribute. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
Also available is an Individual Retirement Annuity. With an IRA, you make regular payments to yourself throughout your lifetime and receive income during retirement. Contributions to IRAs do not have to be taxable
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.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.
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 to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
You should consult a financial planner or accountant to see what options are available to you.
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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (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)
External Links
cftc.gov
- Fraud Advisory: Precious Metals Fraud
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