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p>Investors are preparing for further variations in bitcoin, and other cryptos, as concerns over an overly hawkish Federal Reserve threaten to squelch the market's appetite for risk.The volatility typically associated with cryptocurrency has been fully displayed over the past few weeks. Bitcoin is the most popular cryptocurrency, is up around 33% since January. 24. The price was last seen at $43,850. It's regaining its value after an ebb that cut its cost by half from November's record-setting highest. Its major rival, ether , is up 45percent since Jan. 24 at around $3,200 with a 58 percent drop from the record high of $4,868, which was also recorded in November.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The advocates of cryptocurrency have previously asserted that they are not tied to other assets, bitcoin and its peers had huge gains over the two years that followed, rising along with stocks as the Fed or other central banks pumped incredible amounts of stimulus into the world economy. https://controlc.com/5f419887 has risen 1,039 percentage since March 2020. Ethereum has increased by 2,940%, though the rises of both currencies have been interrupted by numerous-stomach churning selling.Their recent volatility has been accompanied by a wider downturn in the market, triggered by people who are recalibrating their portfolios in preparation for an ever-increasingly aggressive Fed which is likely to increase rates nearly seven times in the coming year as it combats the escalating inflation. The index that is the benchmark S&P 500 index (.SPX) is down 5.5 percent in the year to date, while the high-tech Nasdaq (.IXIC) dropped 9.3%. lost 9.3%.An edgy government tightening of the pace moving into the future will harm these assets has made it difficult for some traders to maintain their bullish outlook regarding bitcoin and other digital currencies which is an asset class that has been associated with extreme volatility.Rising tensions in Ukraine that are escalating in Ukraine, where Washington warned a Russian invasion could occur anytime soon, can generate market-wide volatility as investors speculated. Read moreBitcoin will "really become the most powerful the market that has momentum, and there's so many risks that can lead to a 40% drop seemingly out of thin air," said Ed Moya of Oanda, a senior analyst. Oanda.The volatility of Bitcoin hasn't stopped experts from trying to establish what the price of Bitcoin is or even identify important prices.Analysts at JPMorgan estimate bitcoin's current fair value at around $38,000 which is around 15% lower than its most recent price based primarily on its high volatility in comparison to that of gold, another asset commonly used by investors to hedge their portfolios against risk of economic instability and inflation.Vanda Research, meanwhile, published a note that most of the bearish bets based on a weaker bitcoin price were taken at around $47,000 "there is a possibility of a significant short-squeeze in the event that the threshold is crossed and retail investors are reintroduced to trading in crypto."As for the other side, correlations between the bitcoin and the S&P 500 reached an all-time record on January 31st, according to research that came from BofA Global Research, undercutting the claims of those who plan to use the cryptocurrency as a hedge against market turbulence.Investors can look forward to minutes from the most recent Fed session on monetary policy that will be due out Wednesday. Walmart (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will be among the companies to report results, as corporate earnings season gets underway.Some investors are making plans to take on the volatility in bitcoin, assuming that the value Blockchain technology the built in supply limit, and the effect that it has created, will endure despite frequent price swings.<img width="325" src="">Jurrien Timmer, director of global macro at Fidelity is comparing the current Bitcoin speculation to volatility experienced by tech stocks during the dotcom boom nearly two decades ago, a boom and bust cycle that left a comparatively small group of businesses left standing."Amazon is still going strong and Apple continues to exist and they're bigger than they've ever been and the idea is that with bitcoin it'll be similar," He said. "But bitcoin isn't immune from these waves of speculation or sentiment."Bitcoin could hit 100,000 by 2023. Timmer stated, in accordance with his supply/demand models.Other analysts believe that mature cryptocurrencies like bitcoin and ether aren't going to achieve the eye-watering gains they have notched since the time of their creation.Instead, they're looking at the possibilities of new alternative currencies that are being created to benefit of the money pouring into the crypto industry such as the metaverse and NFTs. NFTs accounted for more than the equivalent of $30 billion in venture capital investment last year, as reported by PitchBook?.There are altcoins that include cosmos Terra Luna, and Polkadot with a drop of around 20.5 percent 3, 38 and 25.5 percent from the beginning of the year, respectively According to coinmarketcap.com.Understanding the risks linked to the decentralized financial system and its risks is likely to be one of the most important challenges for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very unpredictable in the near future, but there are significant players on both the institutional and retail side who are expanding, so the market is still growing," said Oanda's Moya.

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