p>Investors are looking forward to more swings in bitcoin as well as other cryptocurrencies, as worries over a hawkish Federal Reserve threaten to squelch risk appetite across markets.</p><p>The volatility that is typically associated with cryptocurrencies has been fully displayed in recent weeks. Bitcoin , the largest cryptocurrency, has been up approximately 33% since Jan. 24 and recently traded at $43,850. It has recovered from a tumble that cut its price in half from November's record peak. The primary competitor, ether , is up about 45percent from Jan. 24 and is trading at $3,200 and has seen a nearly 56% nosedive from its record-setting $4,868 at the time of the November.</p><p></p><p>The advocates of cryptocurrency have previously claimed that they had no connection to other assets bitcoin and its peers experienced huge gains over the recent two years, gaining alongside stocks as the Fed along with other central banking institutions pumped extraordinary levels of stimulus into the world economy. Bitcoin is up 1,039 percent since March 2020, and Ethereum has surged by 2940%, however the growth in both cryptos have stopped by several stomach churning selling.</p><p></p><p>The recent volatility in the market is part of a larger market selloff triggered by investors refining their portfolios to prepare for an aggressive Fed, which is now expecting to raise rates more than seven times this year to fights surging inflation. The most widely used S&P 500 index (.SPX) has dropped 5.5% year-to-date, while the technologically-oriented Nasdaq (.IXIC) also has dropped 9.3 percent..</p><p>Worries that an aggressive central bank tightening cycle moving ahead will weaken these assets has made it difficult for traders to maintain their bullish view on bitcoin and other cryptocurrency the asset class identified with intense volatility.</p><p></p><p>Rising tensions in Ukraine, where Washington warned a Russian invasion could take place anytime, may generate market-wide volatility analysts said. learn more</p><p>Bitcoin was "really become the ultimate market for momentum trading and there are so many risks that can create a 40% drop in a flash," said Ed Moya Oanda's senior analyst. Oanda.</p><p>Its volatility in Bitcoin hasn't stopped analysts from trying to gauge whether the currency is worth its value or to identify potentially significant price points.</p><p>Analysts at JPMorgan estimate bitcoin's current fair value at about $38,000 . That's about 15% less than its present price based on its variability in comparison with the volatility of gold. Gold is an asset that investors frequently use to protect their portfolios from inflation and economic uncertainty.<img width="472" src="https://i0.wp.com/wp.diary.tw/files/2022/02/bitcoin_1644463413-scaled.jpeg?w=1168"></p><p>Vanda Research, meanwhile, reported in a recent document that the majority of bearish bets on a lower bitcoin value were put in at around $47,000, and "there could be an enormous short-squeeze if the aforementioned threshold is met and retail investors return to trading with crypto."</p><p>Meanwhile, correlations between bitcoin and the S&P500 rose to the all-time highest on Jan 31, according the data of BofA Global Research, undercutting some of the arguments made by those hoping that they can use the cryptocurrency to the hedge against market volatility.</p><p>The next week, investors will receive minutes of the Fed's recent gathering on monetary policies, which will come to be released on Wednesday. Walmart (WMT.N) and chipmaker Nvidia Corp (NVDA.O) will be among the companies reporting results, as corporate earnings season continues.</p><p>Some investors are planning to take advantage of the volatility in bitcoin, believing that the long-term benefits Blockchain technology its built in supply limit, and the effect that it has created, will endure even in the face of frequent price fluctuations.</p><p>Jurrien Timmer director of global macro at Fidelity is comparing the current speculation about cryptocurrency to the turmoil experienced by tech stocks in the dot-com era more than two decades ago. It was a boom and bust period that resulted in an extremely small number of companies surviving.</p><p>"Amazon is still going strong and Apple is still around , and they're both bigger than ever. the assumption is that for bitcoin it'll be exactly like Apple," Mr. Smith said. "But bitcoin isn't immune from those waves of speculation and sentiment."</p><p>Bitcoin could reach $100,000 as soon as 2023. Timmer claimed, Based on his supply-demand models.</p><p>Others believe that mature cryptocurrencies such as Bitcoin and Ether are unlikely for the kind of stunning gains they have achieved since their inception.</p><p>Instead, they are turning to the wide world of alternative coins creating to profit of the cash flowing into the crypto industry such as the metaverse and NFTs. https://vuf.minagricultura.gov.co/Lists/Informacin%20Servicios%20Web/DispForm.aspx?ID=12546 accounted for more than more than $30 billion of venture capital investment this year, as per PitchBook?.</p><p>Certain altcoins include cosmos Terra Luna, and Polkadot and are trading at around 20.5% (38%), 20.5%, and 25.5 percent year-to-date, respectively, on the basis of coinmarketcap.com.</p><p>Understanding the risks related to them and decentralized financing is going to be one the main concerns for investors by 2022, says Lily Francus, director of quantitative research strategy at Moody's Analytics.</p><p>Cryptocurrencies "are going to remain volatile , but there are significant players on both the institutional and retail side that are still expanding, and so the interest continues to grow," said Oanda's Moya.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe></p>


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Last-modified: 2022-02-13 (日) 15:03:23 (810d)