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p>Investors are bracing for more swings in bitcoin as well as other cryptos, as concerns over an overly aggressive Federal Reserve threaten to squelch the appetite for risk across markets.The volatility traditionally associated with cryptocurrency has been fully displayed in recent weeks. Bitcoin is the largest cryptocurrency, has risen by around 33% since January. 24 and has recently traded at $43,850. It's regaining its value after dropping that cut its value by half from the record peak. The main competitor, ether , is up about 45percent since Jan. 24 and is trading at $3,200 with a 58% nosedive from its record high of $4,868, that was in November.<img width="386" src="">Although those who advocated for cryptocurrencies previously denied their correlation to other assets the bitcoin market and its competitors experienced huge gains over the recent two years. https://atavi.com/share/vb1uutz1fud7w 've risen alongside stocks as the Fed and other central banks pumped enormous amounts of stimulus into the global economy. Bitcoin has increased by 1,039 percent since March 2020. ether has risen 2,940%, but the increase in both of them has been marred by numerous stomach churning sales.Their recent volatility has been accompanied by a wider downturn in the market, triggered by people revising their portfolios so that they account for an aggressive Fed that is predicted to raise rates at least seven times this year to combats the rising cost of living. The standard S&P 500 index (.SPX) has dropped 5.5 percent in the year to date, while the high-tech Nasdaq (.IXIC) also has dropped 9.3%.An edgy pace of tightening by the central bank going further will hit the risky assets have made it difficult for traders to maintain their positive outlook regarding bitcoin and various cryptos as an asset class that has been identified as being extremely volatile.Rising tensions in Ukraine in Ukraine, where Washington warned a Russian invasion could commence any time, could lead to market shifts in the future Investors have said. Learn moreBitcoin It has "really become the ultimate the market that has momentum, and there's plenty of risks that could lead to a 40% drop in a flash," said Ed Moya of Oanda, a senior analyst. Oanda.The volatility of Bitcoin doesn't stop some analysts from trying to figure out the fair value of the currency, or to identify potentially significant prices.Analysts at JPMorgan believe that bitcoin's fair value to be around $38,000 - some 15% less than its current price based on its volatility in comparison with that in gold, a similar asset commonly used by investors to protect their portfolios from price fluctuations and economic uncertainty.Vanda Research, meanwhile, released a statement that the bulk of negative bets on the weaker bitcoin were placed around $47,000 "there might be a massive short-squeeze , if the threshold is crossed and retail investors are reintroduced to trading with crypto."Additionally, the correlations between bitcoin and the S&P500 reached the all-time highest on Jan 31 according to data provided by BofA Global Research, undercutting the argument of those who hope to utilize the cryptocurrency as an insurance against market volatility.Investors can look forward to minutes from the last Fed financial policy meeting due out Wednesday. Walmart (WMT.N) in addition to chipmaker Nvidia Corp (NVDA.O) will be among the companies reporting resultsas the corporate earnings season rolls on.Some investors are steeling themselves to weather the volatility in bitcoin, betting that the longer-term value Blockchain technology its built in supply limit, and the effects it generates, will last regardless of the numerous price swings.Jurrien Timmer director of macro-economics at Fidelity is comparing the current crypto market's volatility to the volatility experienced by tech stocks during that period of dot-com more than two decades ago. This was a boom-and -bust time period that saw an extremely small number of businesses left standing."Amazon is still around and Apple is still around , and they're more powerful than ever, and the expectation is that for bitcoin, it will be as well," Mr. Smith said. "But bitcoin isn't immune to the waves of speculation and sentiment."Bitcoin could hit $100,000 by 2023, Timmer claims, based on his supply/demand models.Others believe that mature cryptocurrencies such as bitcoin and ether are unlikely in delivering the amazing gains they have seen since their beginning.Instead, they're looking to the universe of new alternative coins being created to benefit of the money flowing into the crypto-currency space which includes the metaverse as well as NFTs, which saw 30 billion dollars worth of venture capital investments in 2013, according to PitchBook?.Certain altcoins include cosmos Terra Luna, and Polkadot and are trading at around 20.5% in the past three months, with 38% and 25.5 percent from the beginning of the year, respectively, from coinmarketcap.com.Understanding the risks linked to them and decentralized financing is going to be one the most significant challenges for investors by 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Cryptocurrencies "are going to remain very volatile going forward, but there are some major players on the institutional side and the retail side that are increasing, so interest is growing," said Oanda's Moya.

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