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p>Investors are anticipating further volatility in bitcoin and other cryptocurrencies, as worries over the aggressiveness of the Federal Reserve threaten to squelch the risk-taking appetite in markets.The volatility normally that is characteristic of cryptocurrency has been displayed during the last few weeks. Bitcoin is the largest cryptocurrency, has been up roughly 33% from January. 24. It was last traded at $43,850. It's regaining its value after dropping that cut its price by half since November's record-setting peak. Its biggest rival, ether , is up 45percent from Jan. 24 with a price of around $3200 in the wake of a near 56% nosedive from its record-setting $4,868 at the time of the November.The advocates of cryptocurrency have previously denied their correlation to other assets however, bitcoin as well as its rivals gained hugely over the two years that followed, rising alongside stocks as the Fed and central banks unleashed enormous amounts of stimulus into the world economy. Bitcoin is up 1,039 percent since March 2019, and Ethereum has surged by 2940%, however the surges in both cryptocurrency have been interrupted by numerous-stomach churning sales.Their recent volatility is in line with a larger market decline triggered by investors shifting their portfolios around to account for an ever-increasingly aggressive Fed that is expecting to raise rates nearly seven times during the year as it combats rising inflation. https://www.ted.com/profiles/33375442 used S&P 500 index (.SPX) is down 5.5 percent in the year to date, while the technologically-oriented Nasdaq (.IXIC) have dropped 9.3 percent..Beliefs that a more aggressive inflationary cycle by central banks moving forward will be a savage blow to the risky assets have made it difficult for some traders to maintain their optimistic view on bitcoin as well as other cryptos this asset class is already associated with extreme volatility.As tensions escalate in Ukraine that are escalating in Ukraine, where Washington warned a Russian invasion could commence anytime, may cause market volatility Investors said. Find out moreBitcoin will "really become the ultimate momentum trade and there are lots of risk that could result in a 40% decline from the midst of the night," said Ed Moya of Oanda, a senior analyst. Oanda.The volatility of Bitcoin doesn't stop some analysts from attempting to estimate the currency's fair value or identify possible price points.<img width="488" src="">Analysts at JPMorgan believe that bitcoin's actual value to be about $38,000 , or 15% lower than its current price , based upon its fluctuation in comparison to that in gold, a similar asset that investors frequently use to hedge their portfolios against inflation and economic uncertainty.Vanda Research, meanwhile, released a statement that the bulk of bets that were speculative on a lower bitcoin price were made at around $47,000, and "there may be a substantial short squeeze if the threshold is met, and retail investors return into crypto-trading."Furthermore, correlations between bitcoin and the S&P 500 hit an all-time high on Jan 31, according to data obtained from BofA Global Research, undercutting the logic of those hoping to use bitcoin as an instrument to hedge against market volatility.Investors can look forward to minutes from the most recent Federal Reserve financial policy meeting due out Wednesday. Walmart (WMT.N) in addition to chipmaker Nvidia Corp (NVDA.O) will be among the companies that report results, as corporate earnings season gets underway.A few investors are getting ready to take on the volatility of bitcoin, hoping that the longer-term value associated with blockchain technology its built-in supply limit and the impact it generates, will last despite the frequent price changes.Jurrien Timmer director of macro-economics at Fidelity described the current cryptocurrency market to the fluctuations in tech stocks seen during the dotcom boom nearly 20 years ago, a boom-and -bust time period that saw relatively few companies remaining."Amazon is still going strong and Apple is around as well and they're bigger than ever and the assumption is that for bitcoin it will be exact," Mr. Smith said. "But bitcoin isn't immune to these waves of speculation or sentiment."Bitcoin could reach $100,000 as soon as 2023, Timmer says, as per his supply/demand calculations.Others believe mature cryptocurrencies like bitcoin and ether are unlikely to make the spectacular gains they have made since their founding.Instead, they're looking towards the vast universe of new alternative coins in development to capitalize of the investment flowing into the crypto industry which includes the metaverse as well as NFTs that saw $3 billion in venture capital investments in the last year, according to PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot and Polkadot, which are down about 20.5%, 38% and 25.5 percentages year-todate, respectively, from coinmarketcap.com.The understanding of the risks that come with the financial sector and decentralized banking is going to be one the most important challenges for investors by 2022, says Lily Francus, director of quantitative research strategy at Moody's Analytics.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Cryptocurrencies "are going to be extremely volatile in the coming years, but there are significant players both on the institutional and retail side who are growing, so interest is still growing," said Oanda's Moya.

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