p>Investors are ready for further volatility in bitcoin and other cryptocurrencies, as worries over the aggressiveness of the Federal Reserve threaten to squelch risks across markets.</p><p>The typical volatility associated with cryptocurrency was visible in recent weeks. Bitcoin is the most popular cryptocurrency, has been up around 33% over the course of Jan. 24. https://lexsrv3.nlm.nih.gov/fdse/search/search.pl?match=0&realm=all&terms=https://www.businesslistings.net.au/FINACNE/QLD/Maadi/ROYALQ/701082.aspx has been trading at $43,850. This is a rebound from the plunge that cut its prices in half compared to November's record high. https://www.pcb.its.dot.gov/PageRedirect.aspx?redirectedurl=https://ponorid757.wixsite.com/royalq/post/top-5-items-under-20-i-can-not-live-without , ether , has risen by around 45% since Jan. 24, at about $3,200 and has seen a nearly 56 percent plunge from its record high of $4,868, and also in November.</p><p></p><p>When advocates of cryptocurrencies boasted of their lack of a correlation to other assets bitcoin and its ilk have seen huge gains in the past two years. They've been rising along with stocks as the Fed or other central banks introduced unimaginable amounts of stimulus to the world economy. Bitcoin has increased by 1,039 percentage since March 2020. Ethereum has seen a rise of 2,940%. However, the rallies in both cryptocurrencies have stopped by several stomach churning selling.</p><p></p><p>Their recent volatility comes amid a wider market selling spurred by investors refining their portfolios to prepare for an even more aggressive Fed that is expected to raise rates as high as seven times this year while it combats rising inflation. The benchmark S&P 500 index (.SPX) has dropped 5.5 percent year-to-date, whereas the technologically-oriented Nasdaq (.IXIC) has lost 9.3 percent..</p><p>Concerns that an aggressive current tightening in the central banking system moving forward will hamstring high-risk assets has made it difficult for some traders to keep their optimistic view regarding bitcoin and various cryptos, an asset class already recognized as having a high degree of volatility.</p><p></p><p>The escalating tensions in Ukraine, where Washington warned a Russian invasion could happen at any moment, could trigger market movements across the board according to investors. read more</p><p>Bitcoin has "really become the most powerful momentum trade and there are so many risk factors that could trigger a 40% drop seemingly out of thin air," said Ed Moya Senior Analyst at Oanda.</p><p>Some experts from trying to assess the fair value of the currency, and identifying potential price points.</p><p>Analysts at JPMorgan estimate bitcoin's current fair value to be around 38,000 dollars, about 15% less than its current cost based on the fluctuations in comparison to the volatility in gold, a similar asset investors often use to hedge their portfolios against rising inflation and economic uncertainty.</p><p>Vanda Research, meanwhile, released a statement that the majority of bearish bets on a weaker bitcoin value were put in at about $47,000 "there may be a substantial short-squeeze if this threshold is exceeded, and retail investors are reintroduced into crypto-trading."<img width="430" src="https://prod.static9.net.au/_/media/2018/02/20/10/52/bitcoin-anonymous.jpg"></p><p>As for the other side, correlations between the bitcoin as well as the S&P 500 rose to an all time high on Jan 31 according to data from BofA Global Research, undercutting the case for those hoping for the use of cryptocurrency as protection against market volatility.</p><p><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Investors next week are expecting minutes from the last Fed meeting on monetary policy due to be released on Wednesday. Walmart (WMT.N) and chip maker Nvidia Corp (NVDA.O) will figure among those releasing numbers as corporate earnings season begins.</p><p>Certain investors are bracing themselves to ride out the volatility in bitcoin, believing on the long-term viability Blockchain technology its built-in supply limit and the effect that the technology creates will continue to last despite the frequent price fluctuations.</p><p>Jurrien Timmer, director of macro-economics at Fidelity and Fidelity, compared the current cryptocurrency market to the market turmoil that tech stocks endured during the dot-com boom more than two decades ago, a boom-and-bust period that saw an incredibly small percentage of companies remain.</p><p>"Amazon is still in existence and Apple is around as well and they're bigger than ever and the expectation is that for bitcoin it will be similar," says the expert. "But bitcoin isn't immune to those waves of speculation and sentiment."</p><p>Bitcoin could hit $100 million by 2023, Timmer told me, as per his supply/demand calculations.</p><p>Other experts believe that mature cryptocurrency, such as Bitcoin and Ethereum are not likely in delivering the amazing gains they have seen since the time of their creation.</p><p>Instead, they are turning to the universe of new alternative currencies that are creating to profit from the capital pouring into the crypto sector, including the metaverse and NFTs. NFTs accounted for more than $30 billion worth of venture capital investment in 2017, according to PitchBook?.</p><p>Certain altcoins include cosmos Terra Luna, and Polkadot that are down 20.5% in the past three months, with 38% and 25.5 percent year-to-date, respectively, on the basis of coinmarketcap.com.</p><p>The understanding of the risks that come with the decentralized financial system and its risks is likely to be among the main concerns for investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.</p><p>Cryptocurrencies "are going to remain very unstable in the future, but there are significant players on both the institutional and retail side that are still growing, so interest is growing," said Oanda's Moya.</p>


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Last-modified: 2022-02-13 (日) 14:55:01 (811d)