p>Investors are preparing for further variations in bitcoin, and other cryptocurrencies, amid concerns that an overly aggressive Federal Reserve threaten to squelch risks across markets.</p><p>The usual volatility associated with cryptocurrency is on full display in recent weeks. Bitcoin is the most popular cryptocurrency, is up by about 33% from Jan. 24 and recently traded at $43,850. This is a rebound from it's plunge, which cut its prices in half compared to November's record highest. Its primary rival, ether is up 45percent from Jan. 24, at about $3,200 in the wake of a near 56 percent drop from the record-setting $4,868 as of November.</p><p></p><p>The advocates of cryptocurrency have previously asserted that they are not tied to other assets however, bitcoin as well as its rivals have seen huge gains in the past two years. They've been rising along with stocks while the Fed in addition to other central banks pumped unimaginable amounts of stimulus to the global economy. Bitcoin has increased by 1,039 percent since March 2020, and Ethereum has grown by 2,940%. However, https://www.misterpoll.com/users/gymfat98 of both currencies have been slowed by frequent stomach churning selloffs.</p><p></p><p>The recent volatility in the market has come amid a broader market selloff that was triggered by investors making adjustments to their portfolios to account for a more aggressive Fed which is anticipated to raise rates as high as seven times this year to combats a rising rate of inflation. The standard S&P 500 index (.SPX) is down 5.5 percent in the year to date, while the technology-focused Nasdaq (.IXIC) have dropped 9.3%.</p><p>Insecurity that a rapid loosening and tightening cycles by central banks moving into the future will harm more risky assets have made difficult for some traders to maintain their positive view regarding bitcoin and other digital currencies the asset class identified with intense volatility.</p><p></p><p>As tensions escalate in Ukraine and Ukraine, where Washington warned a Russian invasion could happen anytime, may cause market volatility according to investors. Learn more</p><p>Bitcoin could "really become the ultimate momentum trade and there are so many risk factors that could cause a 40% drop completely out of the blue," said Ed Moya Senior Analyst at Oanda.</p><p>Bitcoin's volatility hasn't stopped some analysts from seeking to understand the fair value of the currency, or pinpoint potential prices.</p><p>Analysts at JPMorgan estimate bitcoin's current fair value at around $38,000 , which is about 15% below its recent price , based upon its variation in relation to that of gold. Gold is a second asset many investors use to hedge their portfolios against rising inflation and economic uncertainty.</p><p>Vanda Research, meanwhile, wrote in a report that the bulk of betting on bearishness on a declining bitcoin price were entered at approximately $47,000 "there may be a substantial short squeeze if the threshold is reached and retail investors are reintroduced to trading crypto."</p><p>While bitcoin's correlations with as well as the S&P 500 rose to an all time high on Jan 31, according to data provided by BofA Global Research, undercutting the case for those hoping for the use of cryptocurrency as an insurance against market volatility.</p><p>Investors are expected next week to receive minutes from the Federal Reserve's most recent annual meeting of its monetary policy committee, due out on Wednesday. https://git.sicom.gov.co/margingirdle8 (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will be among the companies that will release resultsas earnings season kicks off.</p><p>Some investors are planning to ride out the volatility in bitcoin, hoping on the long-term viability that blockchain technologies offer, its built-in supply limit and the network effect it brings, will be able to endure regardless of the frequent price fluctuations.</p><p>Jurrien Timmer, director of macro-economics at Fidelity, likened the current crypto market's volatility to the fluctuations in tech stocks seen during the dot-com bubble more than two decades ago, a boom and bust cycle that left relatively few firms left standing.<img width="417" src="https://cryptonewsfarm.com/wp-content/uploads/2022/02/JPMorgan-Bitcoin-Prdct.jpg"></p><p>"Amazon remains around, as is Apple is still in existence and they're bigger than ever . it's believed that for bitcoin, it'll do identical," says the expert. "But bitcoin isn't immune from the waves of speculation and sentiment."</p><p>Bitcoin could hit $100 million by 2023, Timmer is claiming, following his supply/demand modeling.</p><p><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Others think that mature cryptocurrency such as bitcoin and ether aren't going for the kind of stunning gains they have achieved since their beginning.</p><p>Instead, they're looking to the vast world of alternative currencies that are developing to take advantage of the investment flowing into the crypto world which includes the metaverse as well as NFTs, which saw $3 billion in venture capital investment this year, as per PitchBook?.</p><p>There are altcoins that include cosmos Terra Luna, and Polkadot in the range of 20.5% (38%), 20.5%, and 25.5 percent year-to-date, respectively, from coinmarketcap.com.</p><p>Understanding the risks related to them and decentralized finance is going to be one of principal challenges facing investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.</p><p>Cryptocurrencies "are likely to remain extremely volatile going forward, but there are significant players on the institutional side and the retail side who are growing, therefore the interest is growing," said Oanda's Moya.</p>


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Last-modified: 2022-02-13 (日) 09:28:31 (811d)