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p>Investors are preparing for further gyrations in bitcoin and other cryptocurrencies, amid concerns that a hawkish Federal Reserve threaten to squelch risk appetite across markets.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The volatility traditionally associated with cryptocurrency was prominent over the past few weeks. Bitcoin , the largest cryptocurrency, has been up around 33% over the course of Jan. 24. The price was last seen at $43,850. The price has risen from drop that cut price by half from its November record-setting price. Its major rival, ether , is up 45percent from Jan. 24 and is trading at $3,200 and has seen a nearly 56 percentage plunge from its previous record-setting $4,868 and also in November.Although those who advocated for cryptocurrencies previously touted their lack of correlation to other assets Bitcoin and its counterparts witnessed huge gains over past two years, rising in tandem with stocks as Fed as well as other central bankers pumped unimaginable amounts of stimulus to the global economy. Bitcoin has risen 1,039 percent from March 2020. Ethereum has grown by 2,940%, but the gains in both have been cut short by a variety of stomach churning selling.The recent volatility in the market is part of a larger market selloff that was triggered by investors refining their portfolios to prepare for the more aggressive Fed that is anticipating to raise rates by up to seven times this year as it battles rising inflation. The benchmark S&P 500 index (.SPX) is down 5.5 percent so far this year, while the technology-focused Nasdaq (.IXIC) also has dropped 9.3 percent..Insecurity that a rapid current tightening in the central banking system moving further will hit risksy assets has made difficult for traders to maintain their positive outlook for bitcoin and cryptos, an asset class already associated with extreme volatility.Escalating tensions in Ukraine and Ukraine, where Washington warned a Russian invasion could happen any minute, could trigger market movements across the board Investors warned. Find out more<img width="323" src="">Bitcoin does "really become the most powerful trend trade, and there are plenty of risks that could cause a 40% drop from the midst of the night," said Ed Moya an analyst at Oanda.The volatility of Bitcoin doesn't stop some experts from trying to establish what the price of Bitcoin is and identifying potential prices.Analysts at JPMorgan estimate bitcoin's current fair value at about $38,000 which is around 15% lower than its most recent price based on its variability in comparison with the volatility of gold. Gold is an asset that investors frequently use to protect their portfolios from risk of economic instability and inflation.Vanda Research, meanwhile, released a statement that the majority of bearish bets on a lower bitcoin price were entered at about $47,000 "there is a possibility of a significant short squeeze if the threshold is met, and retail investors return to trading on cryptocurrency."Additionally, the correlations between bitcoin and the S&P500 hit the highest level ever on January 31according to figures taken from BofA Global Research, undercutting the argument for those who want for the use of cryptocurrency as an investment to protect against market volatility.Investors can look forward to minutes from the most recent Federal Reserve session on monetary policy that will be due to be released on Wednesday. https://lyrefat3.bravejournal.net/post/2022/02/13/How-to-Buy-Bitcoin (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will figure among those releasing resultsas the corporate earnings season continues.A few investors are getting ready to ride out the volatility in bitcoin, assuming on the long-term viability for blockchain tech, the built in supply limit, and the effects its technology produces, will last despite the frequent price fluctuations.Jurrien Timmer, director of macro-economics at Fidelity has compared the current cryptocurrency speculation to volatility experienced by tech stocks during that period of dot-com more than two decades ago, a boom and bust cycle that left the smallest number of companies left standing."Amazon is still going strong and Apple remains in business and they're bigger than ever and we're thinking that for bitcoin, it'll do much the same" his statement reads. "But bitcoin isn't immune from those waves of speculation and sentiment."Bitcoin could reach $100,000 as soon as 2023, Timmer says, using his supply and demand models.Others think that mature cryptocurrency such as bitcoin and ether are unlikely to make the astonishing gains that they have enjoyed since their beginning.Instead, they are turning at the world of new alternative currencies that are creating to profit of the wealth pouring into the crypto world such as the metaverse and NFTs. The latter saw $30 billion worth of venture capital investment last year, according PitchBook?.Certain altcoins include cosmos Terra Luna, and Polkadot that are all down by 20.5 percent three times, and 25.5 percent from the beginning of the year, respectively, According to coinmarketcap.com.Understanding the risks associated with their decentralized nature and financial systems is going to be one principal challenges facing investors by 2022, says Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely volatile going forward, but there are significant players on both the institutional side and the retail side that are growing, meaning that interest is still growing," said Oanda's Moya.

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