p><img width="306" src="https://www.circlebconsulting.com/wp-content/uploads/2022/01/bitcoin-101-700x450.jpg">Investors are waiting for more flashes of bitcoin and other digital currencies, as concerns about an overly hawkish Federal Reserve threaten to squelch the appetite for risk across markets.</p><p>The extreme volatility usually related to cryptocurrency has been evident during the last few weeks. Bitcoin , the largest cryptocurrency, is up nearly 33% as of Jan. 24, and lastly traded at $43,850. https://vuf.minagricultura.gov.co/Lists/Informacin%20Servicios%20Web/DispForm.aspx?ID=12648 rebounding from falling to a point that cut the price by half since November's record-setting price. The primary competitor, Ether, has gained around 45percent since January. 24 with a price of around $3200 as of Jan. 24, following a 56 percentage plunge from its previous record high of $4,868, as of November.</p><p></p><p>The advocates of cryptocurrency have previously stated that they have no correlation to other assets the bitcoin market and its competitors have seen huge gains in the last two years, rallying in tandem with stocks as Fed as well as other central banks unleashed extraordinary levels of stimulus into the world economy. Bitcoin has increased by 1,039 percent since March 2019, and Ethereum has seen a rise of 2,940%, but the growth in both cryptos have stopped by several stomach churning sales.</p><p></p><p>Their recent volatility has occurred in the midst of a wider market selling spurred by investors shifting their portfolios around to account for a more aggressive Fed that is likely to increase rates nearly seven times in the coming year as it combats the escalating inflation. https://historyhub.history.gov/external-link.jspa?url=https://lexsrv3.nlm.nih.gov/fdse/search/search.pl?match=0&realm=all&terms=https://anotepad.com/notes/69bin3dw &P 500 index (.SPX) has dropped 5.5 percent year-to-date, whereas the tech-driven Nasdaq (.IXIC) has dropped 9.3 percent..</p><p>An edgy inflationary cycle by central banks moving into the future will harm volatile assets has made difficult for traders to maintain their optimistic outlook on bitcoin and other cryptos this asset class is already identified with intense volatility.</p><p></p><p>The escalating tensions in Ukraine which is where Washington warned a Russian invasion could happen anytime soon, can lead to market shifts in the future according to investors. Find out more</p><p>Bitcoin will "really become the ultimate market for momentum trading and there are plenty of risks that could cause a 40% drop in a flash," said Ed Moya an analyst at Oanda.</p><p>Its volatility in Bitcoin hasn't stopped analysts from trying to gauge its fair value or to identify potentially significant price points.</p><p>Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 - some 15% less than its previous price based primarily on its fluctuation in comparison to that of gold. Gold is a second asset investors often use to hedge their portfolios against risk of economic instability and inflation.</p><p>Vanda Research, meanwhile, wrote in a report that the majority of bearish bets on a lower bitcoin price were placed at about $47,000 "there could be a huge short-squeeze in the event that the threshold is met and retail investors return to trading on cryptocurrency."</p><p>As for the other side, correlations between the bitcoin and the S&P500 rose to an all-time high in January 31, as per research collected by BofA Global Research, undercutting some of the arguments made by those hoping to use the cryptocurrency as protection against market volatility.</p><p>The next week, investors will receive minutes from the most recent Federal Reserve annual meeting of its monetary policy committee, due to be released on Wednesday. Walmart (WMT.N) and chip maker Nvidia Corp (NVDA.O) will figure among those releasing results, as corporate earnings season begins.</p><p>Some investors are ready to take on the volatility of bitcoin, believing that the value associated with blockchain technology the built-in supply limit and the impact the technology creates will continue to last regardless of the numerous price swings.</p><p>Jurrien Timmer director of macro-economics at Fidelity has compared the current speculation in cryptocurrencies to the turmoil experienced by tech stocks in the dotcom boom nearly two decades ago, a boom-and -bust time period that saw a comparatively small group of companies remaining.</p><p>"Amazon continues to exist and Apple continues to exist and they're bigger than ever and the assumption is that for bitcoin, it will be much the same" He said. "But bitcoin isn't immune from the waves of speculation and sentiment."</p><p>Bitcoin could reach 100,000 by 2023, Timmer claimed, basing his supply/demand models.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe></p><p>Others believe that mature cryptos like bitcoin and ether aren't going to deliver the kind of eye-watering gains they have notched since their inception.</p><p>Instead, they're turning towards the vast universe of new alternative coins developing to take advantage of the wealth flowing into the crypto market such as the metaverse and NFTs, which received around $30 billion worth worth of venture capital investment last year, according to PitchBook?.</p><p>Other altcoins include cosmos Terra Luna, and Polkadot that are all down by 20.5% three times, and 25.5 percent from the beginning of the year, respectively in accordance with coinmarketcap.com.</p><p>Understanding the risks associated with them and decentralized financing is likely to be one of the main challenges for investors in 2022. https://splice.com/maskcook9 , director of quantitative research strategy at Moody's Analytics.</p><p>Cryptocurrencies "are going to remain very volatile in the coming years, but there are significant players on both the institutional and retail side that are growing, meaning that interest is still growing," said Oanda's Moya.</p>


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Last-modified: 2022-02-14 (月) 06:18:47 (810d)