p>Investors are ready for further volatility in bitcoin and other cryptos, as concerns over an aggressive Federal Reserve threaten to squelch risk appetite across markets.</p><p>The volatility commonly associated with cryptocurrency was all over the news over the past few weeks. Bitcoin is the biggest cryptocurrency, has increased by approximately 33% since Jan. 24, and lastly traded at $43,850. The price has risen from an inflection point that cut its value by half from the record-setting high. The main competitor, Ether, has gained around 45percent since Jan. 24 with a price of around $3200 after a 56 percentage plunge from its previous record high of $4,868, which was also recorded in November.</p><p></p><p>Although those who advocated for cryptocurrencies previously asserted that they are not tied to other assets bitcoin and its peers gained hugely over the past two years. They've been rising together with stocks, as the Fed or other central banks introduced unimaginable amounts of stimulus to the world economy. Bitcoin has risen 1,039 percent since March 2020. Ethereum has grown by 2940%. But https://videogamemods.com/members/clovercow8/activity/127864/ in both cryptocurrencies have been slowed by a series of stomach-churning selloffs.</p><p></p><p>The recent volatility in the market comes amid a wider market selloff driven by investors updating their portfolios to make room for an increasingly aggressive Fed, which is now predicted to raise rates more than seven times in the coming year as it combats the rising cost of living. The most widely used S&P 500 index (.SPX) has dropped 5.5% year-to-date, while the tech-heavy Nasdaq (.IXIC) is down 9.3%. lost 9.3 percent..</p><p>Worries that an aggressive inflationary cycle by central banks moving into the future will harm these assets has made it difficult for traders to maintain their optimistic view regarding bitcoin and various cryptos as an asset class associated with extreme volatility.</p><p><img width="303" src="https://images.oe24.at/bitcoin_story_620.jpg/1600x900Crop/192.592.143"></p><p>Intensifying tensions in Ukraine In Ukraine, where Washington warned that a Russian invasion could begin anytime soon, can spur market changes across the globe Investors have said. Read more</p><p>Bitcoin is "really become the most powerful movement trade," and there are several risks that could create a 40% drop from the midst of the night," said Ed Moya Senior Analyst at Oanda.</p><p>The volatility of Bitcoin's currency hasn't stopped analysts from looking to determine the market's value, or point out potentially important price points.</p><p>Analysts at JPMorgan estimate bitcoin's current valuation at around $38,000 , or 15% less than its previous cost based on the fluctuations in comparison to the volatility for gold, another investment investors often use to protect their portfolios from market volatility and inflation.</p><p>Vanda Research, meanwhile, wrote in a report that most of the negative bets on the weaker bitcoin price had been placed at around $47,000 "there is a possibility of a significant short-squeeze in the event that the threshold is met and retail investors are reintroduced to trading in crypto."</p><p><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>In addition, the correlations between bitcoin and the S&P 500 reached an all-time high in January 31, according the data that came from BofA Global Research, undercutting the logic of those hoping to utilize bitcoin as a hedge against market turbulence.</p><p>The next week, investors will receive minutes from the Fed's most recent meeting on monetary policy, which is due out Wednesday. Walmart (WMT.N) and chipmaker Nvidia Corp (NVDA.O) will be among the companies that report resultsas earnings season gets underway.</p><p>A few investors are preparing themselves to take on the volatility of bitcoin, hoping that the long-term advantages from blockchain technology its built-in supply limit and the impact on the network its technology produces, will last regardless of price fluctuations.</p><p>Jurrien Timmer, director of macro-economics at Fidelity The Fidelity director compared the present cryptocurrency market to the volatile tech stocks that were experiencing during the dotcom period more than 20 years ago, a boom-and-bust time that saw just a handful of firms left standing.</p><p>"Amazon is still active and Apple is still in existence and they're stronger than ever and we're thinking that for bitcoin it'll be exactly exact," he said. "But it's not immune to those waves of speculation and sentiment."</p><p>Bitcoin could hit $100,000 as soon as 2023. Timmer claims, based on his supply/demand models.</p><p>Others believe that mature cryptocurrencies such as Bitcoin and Ethereum are not likely for the kind of spectacular gains they have made since their inception.</p><p>Instead, they are turning towards the vast universe of new alternative coins designed to take advantage of the wealth pouring into the cryptocurrency space which includes the metaverse as well as NFTs, which received more than $30 billion of venture capital investment last year according to PitchBook?.</p><p>Some altcoins include cosmos, Terra Luna, and Polkadot that are down 20.5 percent 38%, 20.5% and 25.5 percent year-to-date, respectively, as per coinmarketcap.com.</p><p>Understanding the risks related to the decentralized financial system and its risks is going to be one the main challenges for investors in 2022. http://cqms.skku.edu/b/lecture/813031 , director of quantitative research strategy at Moody's Analytics.</p><p>Cryptocurrencies "are going to remain very volatile , but there are significant players on both the institutional side and the retail side who are expanding, which means that the demand continues to grow," said Oanda's Moya.</p>


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Last-modified: 2022-02-13 (日) 06:01:26 (811d)