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p>Investors are waiting for more gyrations in bitcoin and other digital currencies, as concerns about an overly hawkish Federal Reserve threaten to squelch investors' appetite to take risks across the markets.<img width="422" src="">The volatility normally related to cryptocurrency has been displayed over the past few weeks. Bitcoin is the biggest cryptocurrency, is up by around 33% since January. 24 and is currently trading at $43,850. The price has risen from an ebb that cut its price by half from its record-setting price. The major competitor, ether is up 40% since Jan. 24, at about $3,200 with a 58 percentage plunge from its previous record-setting $4,868 that was in November.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>While advocates of cryptocurrency once boasted of their lack of a correlation to other assets however, bitcoin as well as its rivals saw huge gains over the recent two years, gaining along with stocks while the Fed along with other central banks introduced massive amounts of stimulus into the world economy. https://www.click4r.com/posts/g/3695007/how-to-buy-bitcoin has risen 1,039 percent since March 2020. Ethereum has increased by 2,940%. The rising prices of both cryptocurrencies have been slowed by frequent stomach churning selloffs.The recent volatility in the market has occurred amid a broad market selloff that was triggered by investors recalibrating their portfolios to account for an aggressive Fed that is likely to increase rates up to seven times over the course of this year, as it combats the rising cost of living. The most widely used S&P 500 index (.SPX) is down 5.5% year-to-date, while the technology-focused Nasdaq (.IXIC) is down 9.3%. dropped 9.3 percent..Worries that an aggressive current tightening in the central banking system moving forward will hurt these assets has made it difficult for some traders to maintain their optimistic view for bitcoin and other cryptos. This asset class has already been recognized as having a high degree of volatility.Escalating tensions in Ukraine which is where Washington warned a Russian invasion could be imminent any minute, could result in market swings investors have warned. Learn moreBitcoin It has "really become the ultimate investment that is gaining momentum and has so many risk factors that could cause a 40% plunge that appears out of thin air," said Ed Moya Oanda's senior analyst. Oanda.Some analysts from looking to determine the fair value of the currency, and identifying potential price points.Analysts at JPMorgan estimate bitcoin's current fair value as $38,000 - some 15% less than its previous price - based on its high volatility in comparison to that for gold, another investment people often invest in to hedge their portfolios against rising inflation and economic uncertainty.Vanda Research, meanwhile, released a statement that the majority of bearish bets made on a less bitcoin price were entered at around $47,000, and "there could be a major short-squeeze should the threshold is reached and retail investors are reintroduced to trading crypto."As for the other side, correlations between the bitcoin and the S&P500 climbed to an all-time high on Jan 31according to figures provided by BofA Global Research, undercutting the claims of those who plan to take advantage of the cryptocurrency as an instrument to hedge against market volatility.Investors in the coming week can expect minutes of the Fed's last session on monetary policy that will be due to be released on Wednesday. Walmart (WMT.N) and chipmaker Nvidia Corp (NVDA.O) will include among the companies releasing results, as corporate earnings season gets underway.A number of investors are trying to ride out the volatility in bitcoin, hoping that the long-term benefits that blockchain technologies offer, its built-in supply limit as well as the network effect its technology produces, will last regardless of the frequent price fluctuations.Jurrien Timmer director of global macro at Fidelity, likened the current speculation about cryptocurrency to the turmoil experienced by tech stocks in the dot-com era more than two decades ago. It was a boom and bust era that saw only the smallest number of businesses left standing."Amazon is still around , and Apple is around as well and they're bigger than ever . the idea is that with bitcoin it'll be similar," The man said. "But bitcoin isn't immune from the waves of speculation and sentiment."Bitcoin could hit $100,000 by 2023, Timmer told me, as per his supply/demand calculations.Others believe that mature cryptos like the bitcoin and ether won't be able to produce the impressive gains that they have racked up since their beginning.Instead, they're looking at the world of new alternative coins being made to make the most of the wealth pouring into the crypto world such as the metaverse and NFTs. NFTs accounted for more than an investment of 30 billion from venture capital investments last year according to PitchBook?.Certain altcoins include cosmos Terra Luna, and Polkadot with a drop of around 20.5%, 38% and 25.5 percent year-to-date, respectively, in accordance with coinmarketcap.com.Understanding the risks associated with them and decentralized financing is likely to be among the main challenges for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very volatile for the foreseeable future, but there are significant players both on the institutional and retail side that are still expanding, which means that the demand is still growing," said Oanda's Moya.

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