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p>Investors are waiting for more fluctuations in bitcoin and other cryptocurrency as concerns about an uncompromising Federal Reserve threaten to squelch the appetite for risk across markets.The volatility normally related to cryptocurrency has been visible over the past few weeks. Bitcoin is the most popular cryptocurrency, is climbing by about 33% from Jan. 24 and is currently trading at $43,850. This is a rebound from drop that cut cost by half from November's record peak. Its most popular rival, the ether is up 45percent since Jan. 24 to around $3,200 with a 58 percent plunge from its record-setting $4,868 as of November.The proponents of cryptocurrency previously touted their lack of correlation to other assets bitcoin and its ilk enjoyed huge gains over past two years, rising in tandem with stocks as Fed and other central banks infused huge amounts of stimulus into the world economy. https://repo.getmonero.org/goatchin5 has increased by 1,039% since March 2020 and the price of ether has increased by 2940%. But the increases in both cryptocurrencies have been cut short by a variety of stomach churning selling.Their recent volatility is in line with a larger price decline driven by investors who are recalibrating their portfolios in preparation for a more aggressive Fed, which is now scheduled to raise rates nearly seven times in the coming year as it combats the rising cost of living. The standard S&P 500 index (.SPX) has dropped 5.5 percent so far this year, while the high-tech Nasdaq (.IXIC) was down by 9.3%. lost 9.3 percent..Concerns that an aggressive policy of central banks tightening moving into the future will harm high-risk assets has made it difficult for traders to maintain their bullish view regarding bitcoin and various cryptos this asset class is already recognized as having a high degree of volatility.A rise in tensions within Ukraine in Ukraine, where Washington warned that a Russian invasion could happen anytime soon, can create market turmoil analysts said. Learn moreBitcoin can "really become the most powerful trend trade, and there are numerous risks that could cause a 40% fall that appears out of thin air," said Ed Moya as the senior analyst of Oanda.Its volatility in Bitcoin hasn't stopped experts from trying to establish the currency's fair value or point out potential price points.Analysts at JPMorgan estimate bitcoin's current actual value to be about $38,000 which is around 15% less than its previous value based on its high volatility in comparison to that of gold, an alternative asset traders often use to protect their portfolios from risk of economic instability and inflation.Vanda Research, meanwhile, revealed in a new note that the majority of betting on bearishness on a declining bitcoin price were entered at around $47,000, and "there may be a substantial short squeeze if that threshold is reached and retail investors return to crypto-trading."In addition, the correlations between bitcoin and the S&P500 reached the all-time highest on Jan 31, according to data collected by BofA Global Research, undercutting the claims of those who plan to utilize the cryptocurrency as an asset to shield against market volatility.Investors are expected next week to receive minutes of the Fed's last meeting on monetary policy to be sent to be released on Wednesday. Walmart (WMT.N) and chip maker Nvidia Corp (NVDA.O) will include among the companies releasing results, as corporate earnings season gets underway.A few investors are preparing themselves to weather the volatility of bitcoin, betting that the long-term benefits of blockchain technology, the built-in supply limit as well as the network effect its technology produces, will last regardless of price fluctuations.Jurrien Timmer director of macro-economics at Fidelity is comparing the current bitcoin speculation to the turbulent tech stocks of the dot-com era more than two decades ago, a boom-and-bust period which saw the smallest number of companies remaining."Amazon remains in business and Apple is still around , and they're larger than ever before and the expectation is that for bitcoin it'll be similar," Mr. Smith said. "But bitcoin isn't immune to those waves of speculation and sentiment."Bitcoin could reach the $100,000 mark by 2023. Timmer claims, according to his supply/demand model.Others believe that mature cryptocurrencies such as bitcoin and ether have a low chance to make the incredible gains that they have had since their founding.Instead, they're turning towards the vast universe of new, alternative coins that are being made to make the most of the investment flowing into the crypto market which includes the metaverse as well as NFTs, which saw an investment of 30 billion from venture capital investments last year, as reported by PitchBook?.There are a few altcoins like cosmos, Terra Luna, and Polkadot with a drop of around 20.5 percent (38%), 20.5%, and 25.5 percent over the past year, respectively according to coinmarketcap.com.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Understanding the risks linked to them and decentralized financing is going to be one of the most difficult issues for investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.<img width="347" src="">Cryptocurrencies "are going to be extremely volatile for the foreseeable future, but there are significant players both on the institutional side and the retail side who are growing, so interest continues to grow," said Oanda's Moya.

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