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p>Investors are looking forward to more exuberance in bitcoin and cryptocurrency, as fears of an overly aggressive Federal Reserve threaten to squelch market appetite for risk in all markets.The volatility traditionally associated with cryptocurrency is all over the news during the last few weeks. Bitcoin is the biggest cryptocurrency, is up by around 33% since January. 24, and lastly traded at $43,850. This is a rebound from it's plunge, which cut its prices in half compared to November's record high. Its most popular rival, the ether is up 45% since Jan. 24 at around $3,200, following a nearly 56 percent decline from its record high of $4,868, the same month in November.The advocates of cryptocurrency have previously stated that they have no correlation to other assets bitcoin and other cryptocurrencies saw huge gains over the last two years. They have risen along with stocks as the Fed as well as other central banking institutions pumped unprecedented amounts of stimulus in the world economy. Bitcoin is up 1,039 percent since March 2019, and Ethereum has grown by 2,940%. The gains in both have been disrupted by stomach-churning selloffs.The recent volatility in the market comes amid a wider market decline triggered by investors recalibrating their portfolios to account for an even more aggressive Fed which is anticipated to raise rates up to seven times this year as it fights surging inflation. https://framejoke8.bravejournal.net/post/2022/02/13/How-to-Buy-Bitcoin used S&P 500 index (.SPX) is down 5.5 percent in the year to date, while the tech-heavy Nasdaq (.IXIC) has lost 9.3%.<img width="402" src="">Insecurity that a rapid policy of central banks tightening going ahead will weaken the risky assets have made it difficult for some traders to maintain their bullish view for bitcoin and cryptos and other asset classes, which are already known for its extreme volatility.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>An increase in tensions in Ukraine In Ukraine, where Washington warned a Russian invasion could start any minute, could spark broad market moves Investors have said. find out moreBitcoin was "really become the most powerful trading platform and there are so many risk factors that could cause a 40% fall suddenly," said Ed Moya as the senior analyst of Oanda.There are a few analysts from trying to gauge the fair value of the currency, or identify possible prices.Analysts at JPMorgan believe that bitcoin's worth at $38,000 , or 15% lower than its current price based primarily on its volatility in comparison with that in gold, a similar asset traders often use to hedge their portfolios against the effects of inflation and economic uncertainty.Vanda Research, meanwhile, released a statement that the bulk of bearish bets on a weaker bitcoin price were taken at around $47,000 "there could be an enormous short squeeze if that threshold is reached, and retail investors return to trading in crypto."However, the correlations between Bitcoin and the S&P 500 reached the highest level ever on January 31, according to data obtained from BofA Global Research, undercutting the claims of those who plan to use the cryptocurrency as the hedge against market volatility.Investors can look forward to minutes from the Fed's most recent financial policy meeting due out on Wednesday. Walmart (WMT.N) and chip maker Nvidia Corp (NVDA.O) will be among the companies that will release resultsas the corporate earnings season continues.Some investors are making plans to ride out the volatility in bitcoin, assuming that the longer-term value for blockchain tech, its built in supply limit, and the effect on networks it has created, will endure despite the frequent price changes.Jurrien Timmer, director of macro-economics at Fidelity, likened the current Bitcoin speculation to market turmoil that tech stocks endured during the dot-com boom more than 20 years ago, a boom-and-bust period that saw an incredibly small percentage of companies surviving."Amazon is still around , and Apple is still around and the two are bigger than ever. we're thinking that for bitcoin it'll be exactly similarly," He said. "But bitcoin isn't immune to these waves of speculation or sentiment."Bitcoin could hit $100 million by 2023, Timmer says, based on his supply/demand models.Others think that mature cryptocurrency such as bitcoin and ether have a low chance to provide the stunning gains they have achieved since their founding.Instead, they are turning towards the vast universe of new alternative currencies that are being created to benefit of the wealth pouring into the crypto world which includes the metaverse as well as NFTs. These coins saw $30 billion worth of venture capital investment last year, as reported by PitchBook?.There are altcoins that include cosmos Terra Luna, and Polkadot and are trading at around 20.5 percent three times, and 25.5 percent over the past year, respectively according to coinmarketcap.com.Understanding the risks related to these and decentralized finance is likely to be one of the most difficult issues for investors by 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely volatile for the foreseeable future, but there are some major players on the institutional and retail side that are still expanding, which means that the demand is growing," said Oanda's Moya.

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