Are you ready for the latest in the world of Bitcoin? Just a few days back, Bitcoin was cruising around $98,000. Fast forward to today, and it has smashed through expectations, skyrocketing to a remarkable all-time high of $118,820. This surge not only highlights Bitcoin's value as a store of wealth but also solidifies its position as a strategic asset.
The Rise of IBIT ETF
Breaking Records with BlackRock's iShares Bitcoin Trust
Let's talk about the real game-changer here: BlackRock's iShares Bitcoin Trust (IBIT). This ETF powerhouse shattered records by eclipsing $80 billion in assets under management in just 374 days. To put this into perspective, it left the previous record-holder, Vanguard S&P 500 ETF (VOO), in the dust. Vanguard took a whopping 1,814 days to achieve what IBIT did in less than a year!
The Phenomenon of IBIT
Reaching Unprecedented Heights
Today, IBIT stands tall at $83 billion, holding a staggering 706,000 BTC. This makes it the 21st largest ETF in the US market. Just two days ago, IBIT closed at an all-time high of $63.58, illustrating the immense demand for Bitcoin in the current market landscape.
The Value of Bitcoin
Impacting Everyday Americans
Ever wondered how much effort goes into owning a single Bitcoin? According to Anil Patel's latest chart, the average American needs to work for 3,766 hours – that's almost two whole years at the typical US wage – to acquire just one Bitcoin.
Bitcoin's Global Dominance
Outshining Traditional Currencies
Recent data from Bank of America Global Research reveals that Bitcoin has emerged as the top-performing currency in 2025, boasting an impressive 18.2% gain against the US dollar year-to-date. Surpassing 19 fiat currencies, including the Swedish krona and Swiss franc, Bitcoin is not only a digital asset but also a formidable global monetary unit.
Redefining Market Capitalization
Bitcoin's Ascent to the Top
Bitcoin has reclaimed its position among the world's most valuable assets, surpassing tech giant Amazon to secure the 5th spot by market capitalization. With a total market cap of $2.36 trillion and a price of $118,820, Bitcoin now trails closely behind industry giants like Apple, Microsoft, and NVIDIA.
Market Dynamics
Impact on Short Positions
The recent price surge has led to the liquidation of over $463 million in Bitcoin short positions. As the price continues to climb, an additional $1.5 billion in short positions are at risk of liquidation if Bitcoin reaches the $120,000 milestone.
Exciting times in the world of Bitcoin! Stay tuned for more updates as the market continues to evolve. If you're eager to dive deeper into the world of cryptocurrency, now is the perfect time to explore the opportunities that Bitcoin and blockchain technology present. Get ready to ride the wave of digital innovation!
Frequently Asked Questions
How to Open a Precious Metal IRA?
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. Open the account by filling out Form 8606. Then you must fill out Form 5204 to determine what type of IRA you are eligible for. This form should be filled within 60 calendar days of opening the account. Once this is done, you can start investing. You can also contribute directly to your paycheck via payroll deduction.
Complete Form 8903 if your Roth IRA option is chosen. Otherwise, the process will look identical to an existing IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS stipulates that you must have earned income and be at least 18-years old. 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 apply whether you're contributing through an employer or directly from your paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. You can only purchase bullion in physical form. You won't have the ability to trade stocks or bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. This option is offered by some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they're not as liquid as stocks or bonds. This makes them harder to sell when needed. They also don't pay dividends, like stocks and bonds. So, you'll lose money over time rather than gain it.
What proportion of your portfolio should you have in precious metals
To answer this question we need to first define precious metals. Precious elements are those elements which have a high price relative to other commodities. This makes them valuable in investment and trading. Gold is today the most popular precious metal.
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.
In general, all precious metals have a tendency to go up with the market. That said, they do not always move in lockstep with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors favor safe assets like Treasury Bonds, and less precious metals. Because they are rare, they become more pricey and lose value.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
What is a Precious Metal IRA?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These precious metals are extremely rare and valuable. They make excellent investments for your money and help you protect your future from inflation and economic instability.
Precious metals often refer to themselves as “bullion.” Bullion refers simply to the physical metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This allows you to receive dividends every year.
Precious metal IRAs are not like regular IRAs. They don't need paperwork and don't have to be renewed annually. Instead, you pay a small percentage tax on the gains. Plus, you can access your funds whenever you like.
Should You Buy or Sell Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
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 note that gold is increasingly popular because of its perceived intrinsic value and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Consider whether you will actually need the money that you are saving for retirement. You can save money for retirement even if you don't invest in gold. That said, gold does provide an additional layer of protection when you reach retirement age.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offers varying levels of flexibility and security.
- Finally, remember that gold doesn't offer the same level of safety as a bank account. If you lose your gold coins, you may never recover them.
So, if you're thinking about buying gold, make sure you do your research first. And if you already own gold, ensure you're doing everything possible to protect it.
Can I buy gold with my self-directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute as much as $1,000 per year ($2,000 if married filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. These financial instruments allow you to speculate about future prices without actually owning the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
Statistics
- 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)
- (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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
investopedia.com
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads, Example, and Risk Metrics
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was accepted worldwide and became popular due to its durability, purity, divisibility, uniformity, scarcity, and beauty. Aside from its inherent value, it could be traded internationally. Because there were no internationally recognized standards for measuring and weighing gold, the different weights of this metal could be used worldwide. For example, one pound sterling in England equals 24 carats; one livre tournois equals 25 carats; one mark equals 28 carats; and so on.
The United States began issuing American coin made up 90% copper, 10% zinc and 0.942 fine-gold in the 1860s. This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. Because the U.S. government had too much money coming into circulation, they needed to find a way to pay off some debt. They decided to sell some excess gold to Europe in order to do this.
Most European countries distrusted the U.S. Dollar and began to accept gold as payment. After World War I, however, many European countries started using paper money to replace gold. The price of gold rose significantly over the years. Even though the price of gold fluctuates, it remains one the best investments you can make.
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