Bitcoin experienced a significant rally, reaching its highest level since May 2022, as market sentiment turned bullish. Traders anticipated an imminent announcement from the United States Securities and Exchange Commission (SEC) regarding a potential bitcoin exchange-traded fund (ETF), possibly from Blackrock. In tandem with Bitcoin's surge, Ethereum also saw gains, surpassing the $1,800 mark.
Bitcoin bulls drove the cryptocurrency above the $35,000 threshold on Tuesday, fueled by mounting speculation of an ETF approval. After starting the week at a low of $30,433.32, BTC/USD soared to a peak of $35,150.43 earlier in the day. This surge propelled Bitcoin to its highest level since May 7, 2022, when its price exceeded $36,000.
However, the recent gains have somewhat subsided due to various factors, including the relative strength index (RSI) entering overbought territory. The current RSI reading stands at 88.60, its strongest level this year. As a result, BTC is currently trading at $34,528.51, as traders begin to close their positions to secure profits.
Ethereum (ETH) broke the $1,800 barrier for the first time in several months, benefiting from the overall positive sentiment surrounding the crypto market. ETH/USD reached an intraday high of $1,845.99 during today's session, a day after hitting a low of $1,664.58. With this peak, Ethereum achieved its highest point since August 13, when its price briefly dipped below $1,860.
This upward movement marks Ethereum's fifth consecutive session of gains, coinciding with the RSI breaking through resistance at 60.00. Similar to Bitcoin, Ethereum's price strength is now heavily overbought, with the RSI currently at 76.79. Although bulls managed to surpass the 68.00 ceiling in the past few hours, it is unlikely that this level will be sustained as profit takers enter the market.
What are your thoughts on Ethereum potentially reaching $1,900 by the end of the month? Share your opinions in the comments below.
Frequently Asked Questions
What precious metals will be allowed in an IRA account?
Gold is the most widely used precious metal for IRA account accounts. You can also invest in gold bullion bars and coins.
Precious metals can be considered safe investments as they don't lose their value over time. They're also considered a great way to diversify an investment portfolio.
Precious metallics include platinum, silver and palladium. These three metals all have similar properties. Each metal has its own use.
One example is platinum, which is used to create jewelry. To create catalysts, palladium is used. To produce coins, silver can be used.
Think about how much you can afford to purchase your gold, before you make a decision on the precious metal. You may be better buying gold that is less expensive per ounce.
You should also think about whether you want to keep your investment private. Palladium is the best option if you want to keep your investment private.
Palladium is worth more than gold. It's also more rare than gold. So you'll likely have to pay more for it.
Another important factor when choosing between gold and silver is their storage fees. Gold is stored by weight. So you'll pay a higher fee for storing larger amounts of gold.
Silver can be stored by volume. You'll be charged less for smaller amounts.
If you decide to store your precious metals in an IRA, follow all IRS rules regarding gold and silver. This includes keeping records of transactions and reporting them back to the IRS.
What is a Precious Metal IRA, and how can you get one?
Precious and precious metals are excellent investments for retirement accounts. They are a timeless investment that has held its value since the beginning of time. Investing in precious metals such as gold, silver, and platinum is also a great way to diversify your portfolio and protect against inflation.
In addition, some countries allow citizens to store their money in foreign currencies. You can buy gold bars in Canada, and then keep them at the home. You can then sell the same gold bars to Canadian dollars when you return home to visit your family.
This is a very easy way to invest in precious metals. It's particularly helpful for people who don't reside in North America.
How Much of your IRA Should Be Made up of Precious Metals
Protecting yourself from inflation is best done by investing in precious metals such silver and gold. It's not just an investment for retirement; it also helps you prepare for any economic downturn.
Although silver and gold prices have increased in recent years, they can still be considered safe investments as they don't fluctuate nearly as much as stocks. These materials are in constant demand.
The prices of gold and silver are generally predictable and stable. They increase with economic growth and decrease in recessions. This makes them great long-term investors and money-savers.
Precious metals should make up 10 percent of your portfolio. If you want to diversify even further your portfolio, that percentage could rise.
Is a gold IRA worth interest?
It depends on how much money you put into it if you have $100,000, then yes. If you have less than $100,000, then no.
The amount of money that you put into an IRA is what determines whether it earns or not interest.
If you are putting in more than $100,000 annually for retirement savings, you should open a regular brokerage account.
While you will probably earn more interest there as a result, you'll also be subject to riskier investments. It's not a good idea to lose all of the money you have invested in the stock exchange.
An IRA is better if you have $100,000 to invest per year. At least, until the market begins to grow again.
Can you keep precious metals inside an IRA
This question is dependent on whether an IRA owner wishes to diversify into gold or silver, or keep them safe.
If he does want to diversify, then there are two options available to him. He could either buy bars of physical gold and/or sterling from a dealer or simply sell these items back at the end. Let's say he doesn’t want to sell back his precious metal investment. In that case, he should continue holding onto them as they would be perfectly suitable for storing within an IRA account.
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
How to determine if a Gold IRA works for you
Individual Retirement Accounts (IRA) are the most popular type. IRAs are available through employers, banks, mutual funds, and financial planners. The IRS allows individuals to contribute up $5,000 annually without worrying about tax consequences. You can contribute this amount to any IRA regardless of your age. There are limits to how much money you may put into certain IRAs. For example, you cannot contribute to a Roth IRA unless you're at least 59 1/2 years old. Under 50-year-olds must wait until they reach 70 1/2 years of age before you can make contributions. Individuals who work for their employer could be eligible for matching employer contributions.
There are two types of IRAs available: Roth and traditional. The traditional IRA allows you the opportunity to invest in stocks and bonds as well as other investments. However, the Roth IRA only allows you to invest after-tax dollars. Contributions to a Roth IRA aren't taxed when they come out, but withdrawals taken from a Roth IRA are taxed once again. Some people prefer to combine these two accounts. There are pros and cons to each type of IRA. There are pros and cons to each type of IRA. These are the three main things you need to remember:
Traditional IRA pros:
- The company can choose from different contribution options
- Employer match possible
- More than $5,000 in savings per person
- Tax-deferred growth up to withdrawal
- You may have income restrictions
- Maximum contribution limit: $5,500 per annum (or $6,500 for married filing jointly).
- Minimum investment: $1,000
- After you turn 70 1/2, you can begin receiving mandatory distributions
- For an IRA to be opened, you must have at least five-years-old
- Cannot transfer assets from IRAs
Roth IRA pros:
- Contributions do not attract taxes
- Earnings increase tax-free
- Minimum distribution not required
- There are only a few investment options available: stocks, bonds and mutual funds.
- There is no maximum amount limit
- No limitations on transferring assets between IRAs
- An IRA can only be opened by those 55 and older
It is important to understand that not all companies offer the exact same IRAs when opening a new IRA. For example, you might be able to choose between a Roth IRA (or a traditional one) from some companies. Others allow you to combine them. There are different requirements for different types. Roth IRAs don't have a minimum capital requirement. Traditional IRAs only require a $1,000 minimum investment.
The Bottom Line
When choosing an IRA, the critical factor is whether you want to pay taxes now or later. If you're planning to retire in the next ten-years, a traditional IRA may be the best option. A Roth IRA may be a better choice for you. Either way, it's always a good idea to consult a professional about your retirement plans. An expert can advise you on the best options and how to navigate the market.
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