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p>Investors are preparing for further fluctuations in bitcoin and other cryptocurrency, as fears of the direction of the Federal Reserve threaten to squelch the risk-taking appetite in markets.The extreme volatility usually in cryptocurrencies has been prominent during the last few weeks. Bitcoin is the biggest cryptocurrency, is up by approximately 33% since Jan. 24 and was recently trading at $43,850. The price has risen from dropping that cut its price by half from its November record high. Its most popular rival, the ether , is up 45percent since January. 24 to around $3,200 as of Jan. 24, following a 56 percent drop from its record high of $4,868, that was in November.Though advocates of cryptocurrencies have denied their correlation to other assets, bitcoin and its peers had huge gains over the past two years, rising alongside stocks as the Fed and other central banks pumped incredible amounts of stimulus into the global economy. Bitcoin has risen 1,039 percent since March 2019, and Ethereum has surged by 2,940%, though the rallies in both cryptocurrencies have stopped by several stomach churning selloffs.Their recent volatility has occurred amid a broad market selloff driven by investors recalibrating their portfolios to account for an increasingly aggressive Fed, which is now likely to increase rates nearly seven times this year to combats the escalating inflation. http://cqms.skku.edu/b/lecture/816832 &P 500 index (.SPX) is down 5.5 percent from the beginning of the year, while the technology-focused Nasdaq (.IXIC) also has lost 9.3 percent..Worries that an aggressive pace of tightening by the central bank moving ahead will weaken risky assets has made it difficult for some traders to maintain their positive outlook on bitcoin and other cryptocurrency. This asset class has already been classified as having high volatility.Escalating tensions in Ukraine the country where Washington warned that a Russian invasion could start any time, could lead to market shifts in the future Investors warned. Find out moreBitcoin was "really become the most powerful market for momentum trading and there are numerous risks that could cause a 40% drop out of nowhere," said Ed Moya Senior Analyst at Oanda.There are a few experts from trying to establish the currency's fair value or point out potential price points.Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 . https://telegra.ph/How-to-Buy-Bitcoin-02-13-47 's about 15% below its recent price based on its relative volatility to that of gold, another asset which investors typically use to hedge their portfolios against market volatility and inflation.Vanda Research, meanwhile, reported in a recent document that the bulk of bearish bets on a weaker bitcoin price were taken at approximately $47,000 "there could be an enormous short squeeze if the threshold is exceeded, and retail investors return to crypto-trading."Furthermore, correlations between bitcoin and the S&P 500 reached an all-time-high on January 31according to figures that came from BofA Global Research, undercutting the case for those hoping for the use of cryptocurrency as the hedge against market volatility.Investors next week are expecting minutes of the Fed's last financial policy meeting due out on Wednesday. Walmart (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will include among the companies releasing numbers as corporate earnings season gets underway.A few investors are getting ready to take advantage of the volatility in bitcoin, believing that the long-term advantages that blockchain technologies offer, the built-in supply limit and the effects it creates, will last despite frequent price swings.Jurrien Timmer, director of global macro at Fidelity is comparing the current Bitcoin speculation to high volatility tech stocks experienced during the dotcom era over two decades ago. This was a boom-and-bust period which saw a comparatively small group of companies remaining."Amazon is still in existence and Apple continues to exist and they're both bigger than ever. the theory is that for bitcoin it'll be exactly similarly," the analyst said. "But it's not immune to those waves of speculation and sentiment."Bitcoin could reach $100 million by 2023, Timmer is claiming, using his supply and demand models.<img width="428" src="">Others think that mature cryptocurrency such as the bitcoin and ether won't be able to be able to offer the same impressive gains that they have racked up since the time of their creation.Instead, they're turning to the wide world of, alternative coins that are in development to capitalize of the wealth pouring into the crypto market, including the metaverse and NFTs, which saw 30 billion dollars worth of venture capital investment in 2017, according to PitchBook?.Certain altcoins include cosmos Terra Luna, and Polkadot which are down 20.5% 35.8%, 38.8% and 25.5 percent for the year to date, respectively, at the time of coinmarketcap.com.Understanding the risks connected to them and decentralized finance is likely to be among the major challenges for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely uncertain in the future, yet there are significant players both on the institutional and retail side that are still growing, so the interest is growing," said Oanda's Moya.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>

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