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p>Investors are anticipating more fluctuations in bitcoin and other cryptos, as concerns over an aggressive Federal Reserve threaten to squelch market risk appetite.The typical volatility associated with cryptocurrencies is visible over the past few weeks. Bitcoin is the biggest cryptocurrency, has risen by around 33% since January. 24 and recently traded at $43,850. It has recovered from dropping that cut its price by half from its record-setting price. The main competitor, ether is up 45percent from Jan. 24 and is trading at $3,200 in the wake of a near 56 percent decline from its record-setting $4,868 that was in November.Even though advocates of cryptocurrencies boasted of their lack of a correlation to other assets bitcoin and its peers had huge gains over the past two years. They've been rising along with stocks as the Fed as well as other central banking institutions pumped incredible amounts of stimulus into the world economy. http://www.docspal.com/viewer?id=- has increased by 1,039 percent since the beginning of March, while the price of ether has increased by 2,940%, though the rallies in both cryptocurrencies have been slowed by frequent stomach churning selling.<img width="341" src=""><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Their recent volatility is part of a larger market selloff caused by investors who are recalibrating their portfolios in preparation for a more aggressive Fed that is anticipating to raise rates by more than seven times this year while it combats a rising rate of inflation. The most widely used S&P 500 index (.SPX) has dropped 5.5 percent from the beginning of the year, while the tech-driven Nasdaq (.IXIC) also has lost 9.3%.Fears that a ferocious government tightening of the pace moving forward will depress risky assets has made difficult for traders to maintain their bullish outlook on bitcoin and other cryptos this asset class is already known for its extreme volatility.Escalating tensions in Ukraine and Ukraine, where Washington warned that a Russian invasion could start anytime soon, could spur market changes across the globe investors have warned. learn moreBitcoin was "really become the most powerful momentum trade and there are plenty of risks that could cause a 40% loss completely out of the blue," said Ed Moya Oanda's senior analyst. Oanda.The volatility of Bitcoin doesn't stop some analysts from trying to figure out the true value of the currency or point out potential price levels.Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 , which is about 15% less than its current price based on its variability in comparison with the volatility for gold, another investment many investors use to hedge their portfolios against risk of economic instability and inflation.Vanda Research, meanwhile, released a statement that the bulk of betting on bearishness on a declining bitcoin price had been placed at about $47,000 "there could be a huge short-squeeze when the threshold is reached and retail investors are reintroduced to trading in crypto."The correlations between bitcoin and the S&P500 reached an all-time-high on January 31, according data taken from BofA Global Research, undercutting the case for those hoping to utilize the cryptocurrency as security against market volatility.Investors can look forward to minutes from the Fed's most recent monetary policy meeting, due out Wednesday. Walmart (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will include among the companies releasing numbers as corporate earnings season continues.Some investors are ready to ride out the volatility of bitcoin, hoping that the long-term benefit in blockchain technology the built in supply limit, and the effect on networks it creates, will last despite the constant price swings.Jurrien Timmer, director of global macro at Fidelity has compared the current Bitcoin speculation to turbulent tech stocks of that period of dot-com more than two decades ago. boom-and-bust period which saw just a handful of businesses left standing."Amazon is still active and Apple remains around and they're bigger than ever and the theory is that for bitcoin it'll be the same," his statement reads. "But bitcoin isn't immune to these waves of speculation or sentiment."Bitcoin could hit $100,000 as soon as 2023, Timmer has said, in accordance with his supply/demand models.Others think that mature cryptocurrency such as bitcoin and ether aren't likely to be able to offer the same impressive gains that they have racked up since their creation.Instead, they are looking towards the vast universe of new, alternative coins that are being created to take advantage of the wealth pouring into the cryptocurrency space such as the metaverse and NFTs which saw more than $30 billion of venture capital investments in 2013, according to PitchBook?.Some altcoins include cosmos Terra Luna, and Polkadot that are all down by 20.5 percent 3, 38 and 25.5 percent year-to-date, respectively, on the basis of coinmarketcap.com.Understanding the risks connected to the decentralized financial system and its risks is going to be one of the biggest challenges facing investors in 2022, according to 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 and retail side who are growing, so interest is still growing," said Oanda's Moya.

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