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p>Investors are looking forward to more variations in bitcoin, and other cryptocurrencies, as worries over an uncompromising Federal Reserve threaten to squelch the appetite for risk across markets.The extreme volatility usually that is characteristic of cryptocurrency has been all over the news in recent weeks. Bitcoin , the largest cryptocurrency, has increased by around 33% since Jan. 24 and has recently traded at $43,850. The price has risen from the plunge that cut its value in half from November's record-setting peak. Its primary rival, Ether, is climbing around 45% since Jan. 24 when it was trading around $3200 after a nearly 56 percent drop from the record-setting $4,868 which was also recorded in November.Though advocates of cryptocurrencies have exaggerated their lack of connection to other assets bitcoin and its ilk experienced huge gains over the past two years. They've been rising together with stocks, as the Fed and other central banks infused unprecedented levels of stimulus into the world economy. Bitcoin has risen 1,039 percent since March of 2020 and Ether has gained 2940%. But https://repo.getmonero.org/cancerrule1 of both currencies have been cut short by a variety of stomach churning selloffs.Their recent volatility has been accompanied by a wider market decline triggered by investors who are recalibrating their portfolios in preparation for an increasingly aggressive Fed, which is now anticipating to raise rates by nearly seven times in the coming year as it combats the escalating inflation. The benchmark S&P 500 index (.SPX) has dropped 5.5% year-to-date, while the technology-focused Nasdaq (.IXIC) was down by 9.3%. dropped 9.3 percent..Fears that a ferocious central bank tightening cycle moving forward will be a savage blow to high-risk assets has made it difficult for traders to maintain their positive outlook regarding bitcoin and other digital currencies as an asset class is characterized by high volatility.Tensions are rising in Ukraine which is where Washington warned a Russian invasion could take place anytime soon, can cause market volatility according to investors. find out moreBitcoin does "really become the most powerful trend trade, and there are multiple risks that could cause a 40% fall that appears out of thin air," said Ed Moya of Oanda, a senior analyst. Oanda.The volatility of Bitcoin hasn't stopped analysts from looking to determine the true value of the currency or point out potentially important price points.Analysts at JPMorgan estimate bitcoin's current worth at 38,000 dollars, about 15% lower than its most recent cost based on the fluctuation in comparison to that for gold, another investment used by investors to protect their portfolios from inflation and economic uncertainty.<img width="345" src="">Vanda Research, meanwhile, has stated in a note that most of the negative bets on the weaker bitcoin price had been placed at around $47,000, and "there could be a major short-squeeze should the threshold is reached, and retail investors are reintroduced to trading with crypto."As for the other side, correlations between the bitcoin and the S&P 500 hit an all-time high on Jan 31according to figures at BofA Global Research, undercutting the argument of those who hope to take advantage of the cryptocurrency as security against market volatility.Investors are expected next week to receive minutes from the Federal Reserve's most recent financial policy meeting due to be released on Wednesday. Walmart (WMT.N) along with chipmaker Nvidia Corp (NVDA.O) will be among the companies reporting results, as corporate earnings season begins.A number of investors are trying to take advantage of the volatility of bitcoin, hoping that the long-term value proposition for blockchain tech, the built-in supply limit and the effect on networks it generates, will last regardless of the numerous price swings.Jurrien Timmer, director of macro-economics at Fidelity is comparing the current speculation about cryptocurrency to the turmoil experienced by tech stocks in the dotcom period more than two decades ago. It was a boom-and-bust period that saw very few companies surviving."Amazon is still going strong and Apple is around as well and they're bigger than ever . it's believed that for bitcoin, it'll do much the same" explained the man. "But bitcoin isn't immune from those waves of speculation and sentiment."Bitcoin could hit $100 million by 2023. Timmer is claiming, as per his supply/demand calculations.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Other analysts believe that mature cryptocurrencies like bitcoin and ether aren't likely to make the spectacular gains they have made since their inception.Instead, they are turning at the possibilities of new alternative currencies that are creating to profit of the investment flowing into the space of crypto, including the metaverse and NFTs which saw $30,000 worth of venture capital investment last year according to PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot in the range of 20.5 percent 3, 38 and 25.5 percent, year-to date, respectively according to coinmarketcap.com.The understanding of the risks that come with decentralized finance and the risk of them likely to be one of the main challenges for investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain volatile in the coming years, but there are significant players both on the institutional side and the retail side who are growing, so interest is still growing," said Oanda's Moya.

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