A Surge in Bitcoin's Value
On October 24, 2023, bitcoin (BTC) experienced a robust 13% surge during the early morning trading hours, Eastern Time (ET). This rise catapulted bitcoin's value to $35,108 per unit, propelling the entire cryptocurrency market upwards by over 10%. As the market soared, traders who had placed their bets against crypto assets like bitcoin and ethereum found themselves in a tight spot. In a mere 24 hours, a staggering $323 million in crypto short positions evaporated.
The Impressive Market Growth
Currently, the cryptocurrency market's value hovers around a whopping $1.3 trillion, marking a 10% increase. Within the past day, BTC's value ascended by 13%. Other major players also saw notable gains: ETH leaped by 9%, BNB ascended by 5%, and XRP and Solana both notched a 7% hike.
A Struggle for Short Positions
These rapid price escalations have left those who shorted top cryptocurrencies scrambling, as their positions vanished in the wake of these impressive and quick rallies. Recent data from Coinglass reveals that in the last 12 hours, the market witnessed the liquidation of $51.91 million in long positions and a hefty $103 million in short positions.
Breaking down the 24-hour stats, short positions worth $323 million were obliterated, and another $104 million in longs faced a similar fate. Notably, of the total shorts liquidated, bitcoin contracts made up a significant chunk, accounting for $232 million out of the $323 million total.
Meanwhile, ethereum (ETH) saw more than $64 million in shorts liquidated. Solana (SOL) shorts tallied up to about $11.4 million. Additionally, shorts from a myriad of other alternative crypto tokens totaled approximately $21.83 million.
A Surge in Trading Volume
Coinglass data also highlighted a surge in trading volume, reaching $203 billion in the past 24 hours, a 143% increase from the previous day. Open interest now stands at nearly $29.73 billion, up 4.55%. In total, the last day saw crypto liquidations amounting to an eye-popping $429.46 million across both long and short positions.
As the cryptocurrency market experiences such dramatic fluctuations, it is crucial for traders to stay informed and adapt their strategies accordingly. The volatility of the market can lead to substantial gains or losses, as evidenced by the wipeout of speculative bets over the past 24 hours.
What do you think about all the speculative bets being wiped out over the past 24 hours? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
What are the pros and cons of a gold IRA?
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. There are some disadvantages to this investment.
You may lose all your accumulated savings if you take too much out of your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
Another problem is the cost of managing your IRA. Many banks charge between 0.5% and 2.0% per year. Others charge management fees that range from $10 to $50 per month.
If you prefer your money to be kept out of a bank, then you will need insurance. Many insurers require that you own at least one ounce of gold before you can make a claim. You might be required to buy insurance that covers losses up to $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. Some providers restrict the amount you can own in gold. Others let you pick your weight.
You will also have to decide whether to purchase futures or physical gold. Physical gold is more costly than gold futures. Futures contracts offer flexibility for buying gold. They enable you to establish a contract with an expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy doesn't include theft protection or loss due to fire, flood, or earthquake. However, it does cover damage caused by natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
Additional to your insurance, you will need to consider how much it costs to store your gold. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
You must first contact a qualified custodian before you open a gold IRA. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians can't sell assets. Instead, they must maintain them for as long a time as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). Also, you should specify how much each month you plan to invest.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. Once the company has received your application, they will review it and send you a confirmation email.
A financial planner is a good idea when opening a gold IRA. A financial planner can help you decide the type of IRA that is right for your needs. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
Can I buy Gold with my Self-Directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
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 to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts are financial instruments that are based on gold's price. These contracts allow you to speculate on future gold prices without actually owning it. But physical bullion refers to real gold and silver bars you can carry in your hand.
How Does Gold Perform as an Investment?
The supply and demand for gold affect the price of gold. Interest rates are also a factor.
Due to the limited supply of gold, prices for gold are highly volatile. Additionally, physical gold can be volatile because it must be stored somewhere.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (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)
- 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)
- (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)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement account
Tips for Investing In Gold
Investing in Gold is one of the most popular investment strategies worldwide. This is because there are many benefits if you choose to invest in gold. There are many ways you can invest in gold. There are many ways to invest in gold. Some prefer buying physical gold coins while others prefer gold ETFs (Exchange Traded Funds).
Before buying any kind of gold, you need to consider these things.
- First, find out if your country allows gold ownership. If your country allows you to own gold, then you are allowed to proceed. Or, you might consider buying gold overseas.
- The second is to decide which kind of gold coin it is you want. You can choose between yellow gold and white gold as well as rose gold.
- Thirdly, it is important to take into account the gold price. It is better to start small, and then work your way up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- You should also remember that gold prices can change often. Be aware of the current trends.
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