p>Investors are waiting for more fluctuations in bitcoin and other cryptocurrencies, while worries about an uncompromising Federal Reserve threaten to squelch investors' appetite to take risks across the markets.</p><p>The volatility normally in cryptocurrencies has been evident in recent weeks. Bitcoin , the largest cryptocurrency, is up nearly 33% as of Jan. 24. http://sc.sie.gov.hk/TuniS/anotepad.com/notes/swt4ybbg has been trading at $43,850, bouncing back from a tumble that cut its price in half from November's record-setting price. Its primary rival, ether , is up around 45percent from Jan. 24 to around $3,200 and has seen a nearly 56 percent drop from its record-setting $4,868 which was also recorded in November.</p><p></p><p>The advocates of cryptocurrency have previously asserted that they are not tied to other assets Bitcoin and its counterparts enjoyed huge gains over recent two years. They've risen in tandem with stocks as Fed and other central banks introduced huge amounts of stimulus into the world economy. Bitcoin has risen 1,039 percent since March of 2020 and Ethereum has grown by 2,940%. http://ezproxy.cityu.edu.hk/login?url=https://anotepad.com/notes/swt4ybbg in both cryptos have been slowed by a series of stomach-churning selloffs.</p><p></p><p>Their recent volatility is a result of a larger price decline driven by investors who are recalibrating their portfolios in preparation for an aggressive Fed which is likely to increase rates as many as seven times in 2018 as it combats rising inflation. The most widely used S&P 500 index (.SPX) is down 5.5 percent over the past year, and the technologically-oriented Nasdaq (.IXIC) dropped 9.3%. dropped 9.3%.</p><p><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The fear that an aggressive Central Bank tightening process moving further will hit risky assets has made it difficult for traders to maintain their optimistic outlook on bitcoin and other cryptos An asset class already associated with extreme volatility.</p><p></p><img width="360" src="https://openledger.io/wp-content/uploads/2022/01/bitcoin-digital-hologram.png"><p>An increase in tensions in Ukraine as Washington warned that a Russian invasion could begin any day, could also generate market-wide volatility analysts said. Read more</p><p>Bitcoin is "really become the ultimate trading platform and there are lots of risk that could cause a 40% plunge completely out of the blue," said Ed Moya the senior analyst at Oanda.</p><p>The volatility of Bitcoin doesn't stop some analysts from trying to figure out whether the currency is worth its value or pinpoint potential price points.</p><p>Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 - some 15% less than its present price - based on its fluctuation in comparison to that for gold, another investment commonly used by investors to hedge their portfolios against risk of economic instability and inflation.</p><p>Vanda Research, meanwhile, wrote in a report that most of the negative bets on the weaker bitcoin price were taken at around $47,000, and "there may be a large short-squeeze when the threshold is crossed and retail investors return to trading in crypto."</p><p>While bitcoin's correlations with and the S&P 500 climbed to an all-time high on Jan 31st, according to research of BofA Global Research, undercutting the case for those hoping to use bitcoin as an instrument to hedge against market volatility.</p><p>Investors next week are expecting minutes of the Fed's latest meeting on monetary policy to be sent to be released on Wednesday. http://mies.squares.net/wiki/index.php?owlflight8 (WMT.N) and chip maker Nvidia Corp (NVDA.O) will be among the companies that will release resultsas earnings season kicks off.</p><p>Some investors are making plans to weather the volatility of bitcoin, assuming that the potential long-term investment to blockchain technology its built in supply limit, and the network effect it generates, will last regardless of the frequent price fluctuations.</p><p>Jurrien Timmer director of global macro at Fidelity described the current Bitcoin speculation to volatility experienced by tech stocks during the dotcom period more than two decades ago. boom and bust era that saw only a comparatively small group of companies surviving.</p><p>"Amazon is still in existence and Apple is still around , and they're bigger than they've ever been and the thinking is that for bitcoin it'll be exact," the analyst said. "But https://www.transtats.bts.gov/exit.asp?url=https://anotepad.com/notes/swt4ybbg 's not immune to the waves of speculation and sentiment."</p><p>Bitcoin could hit $100,000 as soon as 2023. Timmer claims, as per his supply/demand calculations.</p><p>Others think that mature cryptocurrency such as Bitcoin and Ether are unlikely for the kind of breathtaking gains they have experienced since their beginning.</p><p>Instead, they are turning towards the vast universe of new alternative currencies that are in development to capitalize from the capital pouring into the crypto world which includes the metaverse as well as NFTs, which accounted for around $30 billion worth worth of venture capital investment last year, according PitchBook?.</p><p>Certain altcoins include cosmos Terra Luna, and Polkadot and are trading at around 20.5% 38%, 20.5% and 25.5 percent, year-to date, respectively in accordance with coinmarketcap.com.</p><p>Understanding the risks related to them and decentralized financing is going to be one the biggest challenges facing investors by 2022, says 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 the institutional side and the retail side who are growing, so interest is growing," said Oanda's Moya.</p>


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Last-modified: 2022-02-13 (日) 05:27:01 (811d)