p>Investors are bracing for more fluctuations in bitcoin and other cryptocurrencies, as worries over an aggressive Federal Reserve threaten to squelch market appetite for risk in all markets.</p><p>The volatility commonly associated with cryptocurrency was fully displayed during the last few weeks. Bitcoin is the most popular cryptocurrency, is up by around 33% since January. 24 and was recently trading at $43,850, rebounding from dropping that cut its value in half from November's record-setting peak. https://controlc.com/e511ded5 , ether , is up 45% since Jan. 24, at about $3,200 which follows a more than 56% nosedive from its record high of $4,868, also in November.</p><p></p><p>While advocates of cryptocurrency once claimed that they had no connection to other assets Bitcoin and its counterparts experienced huge gains over the recent two years. They've risen alongside stocks as the Fed and other central banks released extraordinary levels of stimulus into the world economy. Bitcoin has risen 1,039 percent since March of 2020 and Ethereum has surged by 2,940%. The rises of both currencies have been slowed by a series of stomach-churning selloffs.</p><p></p><p>Their recent volatility has come amid a broader market selloff driven by investors shifting their portfolios around to account for an ever-increasingly aggressive Fed which is expected to raise rates up to seven times this year to combats the escalating inflation. The standard S&P 500 index (.SPX) is down 5.5 percent over the past year, and the high-tech Nasdaq (.IXIC) had dropped 9.3 percent..</p><p>An edgy loosening and tightening cycles by central banks moving forward will hurt volatile assets has made difficult for some traders to maintain their bullish view on bitcoin and other cryptocurrency which is an asset class that has been classified as having high volatility.</p><p></p><p>An increase in tensions in Ukraine as Washington warned a Russian attack could start anytime, may trigger market movements across the board Investors have said. Learn more</p><p>Bitcoin can "really become the ultimate movement trade," and there are several risks that could cause a 40% plunge without warning," said Ed Moya Senior Analyst at Oanda.</p><p>Its volatility in Bitcoin hasn't stopped analysts from trying to figure out what the price of Bitcoin is and identifying potential prices.</p><img width="382" src="https://privatekeyfinder.io/assets/icon/bitcoin-cash-logo.svg"><p>Analysts at JPMorgan believe that bitcoin's valuation at around $38,000 - some 15% less than its previous value based on its variation in relation to that of gold. Gold is an asset which investors typically use to protect their portfolios from price fluctuations and economic uncertainty.</p><p>Vanda Research, meanwhile, reported in a recent document that the majority of bearish bets placed on a weaker bitcoin price were made at about $47,000 "there could be a huge short squeeze if the threshold is reached, and retail investors return back to crypto-trading."</p><p>Meanwhile, correlations between bitcoin as well as the S&P 500 rose to an all-time high on January 31 according to data from BofA Global Research, undercutting some of the arguments made by those hoping that they can use the cryptocurrency to an insurance against market volatility.</p><p>The next week, investors will receive minutes from the last Fed meeting on monetary policy to be sent out Wednesday. Walmart (WMT.N) in addition to chipmaker Nvidia Corp (NVDA.O) will be among the companies to report results, as corporate earnings season begins.</p><p>A few investors are preparing themselves to ride out the volatility in bitcoin, believing that the long-term benefit that blockchain technologies offer, its built-in supply limit and the network effects it creates, will continue regardless of the numerous price swings.</p><p>Jurrien Timmer, director of macro-economics at Fidelity is comparing the current cryptocurrency speculation to volatility experienced by tech stocks during the dotcom era over two decades ago. http://cqms.skku.edu/b/lecture/813441 was a boom-and-bust period which saw an incredibly small percentage of businesses left standing.</p><p>"Amazon is still around and Apple is still around , and they're more powerful than ever, and they're hoping that for bitcoin it'll be similarly," The man said. "But https://bvphusanct.com.vn/Default.aspx?tabid=120&ch=21755 's not immune to those waves of speculation and sentiment."</p><p>Bitcoin could reach 100,000 by 2023, Timmer stated, according to his supply/demand model.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe></p><p>Other analysts believe that mature cryptocurrencies like bitcoin and ether will not be able to produce the incredible gains that they have had since their founding.</p><p>Instead, they're turning to the wide world of alternative currencies that are designed to take advantage of the investment flowing into the crypto-currency space, including the metaverse and NFTs. NFTs accounted for more than an investment of 30 billion from venture capital investment last year, according PitchBook?.</p><p>Other altcoins include cosmos Terra Luna, and Polkadot with a drop of around 20.5% 35.8%, 38.8% and 25.5 percent, year-to date, respectively according to coinmarketcap.com.</p><p>Understanding the risks connected to them and decentralized financing is going to be one the main concerns for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.</p><p>Cryptocurrencies "are going to remain unpredictable in the near future, but there are significant players on both the institutional and retail side that are growing, so the interest continues to grow," said Oanda's Moya.</p>


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Last-modified: 2022-02-13 (日) 07:33:16 (811d)