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p>Investors are anticipating further flashes of bitcoin and other cryptocurrencies, as worries over the direction of the Federal Reserve threaten to squelch the risk-taking appetite in markets.The volatility traditionally in cryptocurrencies has been at full display in recent weeks. Bitcoin is the largest cryptocurrency, has risen by around 33% since January. 24. It has been trading at $43,850, rebounding from falling to a point that cut the value by half from the record high. Its most popular rival, the ether , is up around 45percent since January. 24 and is trading at $3,200 which follows a more than 56 percent plunge from its record high of $4,868, which was also recorded in November.While proponents of cryptocurrencies once denied their correlation to other assets as a result, bitcoin and its peer gained hugely over the past two years, rising like stocks when the Fed and central banks introduced unimaginable amounts of stimulus to the global economy. https://controlc.com/8f80ba17 is up 1,039 percentage since March 2020. Ethereum has increased by 2940%. But the surges in both cryptocurrency have been interrupted by numerous-stomach churning sales.Their recent volatility is part of a larger market selloff that was triggered by investors shifting their portfolios around to account for an even more aggressive Fed which is expecting to raise rates as many as seven times this year as it combats the escalating inflation. The most widely used S&P 500 index (.SPX) is down 5.5 percent so far this year, while the tech-heavy Nasdaq (.IXIC) was down by 9.3%. lost 9.3 percent..Worries that an aggressive policy of central banks tightening moving forward will hamstring volatile assets has made difficult for some traders to maintain their optimistic outlook on bitcoin and the other cryptos the asset class associated with extreme volatility.Tensions are rising in Ukraine, where Washington warned that a Russian invasion could begin any minute, could create market turmoil analysts said. learn moreBitcoin has "really become the most powerful trend trade, and there are multiple risks that could cause a 40% plunge in a flash," said Ed Moya who is a senior analyst at Oanda.There are a few analysts from attempting to estimate the market's value, or pinpoint potential price points.Analysts at JPMorgan believe that bitcoin's fair value as $38,000 - some 15% less than its present price , based upon its volatility in comparison with that of gold, another asset traders often use to hedge their portfolios against volatility in the economy and inflation.Vanda Research, meanwhile, published a note that the majority of bearish bets on a lower bitcoin price were entered at around $47,000, and "there may be a large short squeeze if the threshold is crossed, and retail investors return to trading in crypto."The correlations between bitcoin and the S&P500 reached an all-time high on Jan 31, according to data obtained from BofA Global Research, undercutting the arguments for those looking to utilize the cryptocurrency as an investment to protect against market volatility.Investors can look forward to minutes of the Fed's last monetary policy meeting, due out on Wednesday. Walmart (WMT.N) in addition to chipmaker Nvidia Corp (NVDA.O) will be among the companies that will release resultsas the corporate earnings season begins.A few investors are preparing themselves to ride out the volatility of bitcoin, betting that the potential long-term investment in blockchain technology the built in supply limit, and the impact the technology creates will continue to last even in the face of frequent price fluctuations.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Jurrien Timmer director of macro-economics at Fidelity described the current speculation on cryptocurrency to turmoil experienced by tech stocks in the dotcom era nearly two decades ago. boom and bust period that resulted in the most minuscule number of companies remain.<img width="365" src="https://yt3.ggpht.com/a/AATXAJz_5ryvCB_-xwoz5VpmG63eRz5m60UTN6VTyA=s900-c-k-c0xffffffff-no-rj-mo">"Amazon is still in existence and Apple remains in business and they're stronger than ever and the theory is that for bitcoin, it will be identical," explained the man. "But it's not immune to the waves of speculation and sentiment."Bitcoin could hit the $100,000 mark by 2023. Timmer stated, in accordance with his supply/demand models.Others are of the opinion that mature currencies like the bitcoin and ether won't be able to be able to offer the same amazing gains they have seen since their creation.Instead, they are looking towards the vast universe of new alternative currencies that are being developed to make use from the capital pouring into the crypto industry which includes the metaverse as well as NFTs, which accounted for more than $30 billion of venture capital investment last year, as reported by PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot, which are down around 20.5 percent 38%, 20.5% and 25.5 percent for the year to date, respectively, in accordance with coinmarketcap.com.Understanding the risks associated with the financial sector and decentralized banking is going to be one the main concerns for investors by 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely volatile for the foreseeable future, but there are significant players on the institutional side and the retail side that are growing, so the interest is growing," said Oanda's Moya.

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