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p>Investors are preparing for further gyrations in bitcoin and other cryptocurrency as concerns about an aggressive Federal Reserve threaten to squelch market appetite for risk in all markets.The volatility normally associated with cryptocurrency has been on full display over the past few weeks. Bitcoin is the most popular cryptocurrency, is climbing by around 33% since Jan. 24 and was recently trading at $43,850. It's rebounding from it's plunge, which cut its cost by half from November's record price. https://toybean9.tumblr.com/post/676096381538205696/how-to-buy-bitcoin , ether , has risen by around 40% since Jan. 24, at about $3,200 after a 56% nosedive from its record-setting $4,868 the same month in November.When advocates of cryptocurrencies stated that they have no correlation to other assets as a result, bitcoin and its peer have seen huge gains in the past two years. They've been rising along with stocks while the Fed along with other central bankers pumped massive amounts of stimulus into the world economy. Bitcoin has risen 1,039 percent since March 2020, and Ethereum has increased by 2940%, however the rallies in both cryptocurrencies have been disrupted by stomach-churning selloffs.Their recent volatility is in line with a larger market selloff caused by investors refining their portfolios to prepare for the more aggressive Fed, which is now scheduled to raise rates nearly seven times this year while it combats the escalating inflation. https://www.click4r.com/posts/g/3696715/how-to-buy-bitcoin used S&P 500 index (.SPX) has dropped 5.5 percent from the beginning of the year, while the tech-driven Nasdaq (.IXIC) was down by 9.3%. dropped 9.3%.Beliefs that a more aggressive pace of tightening by the central bank going forward will hurt risky assets has made it difficult for some traders to maintain their optimistic outlook for bitcoin and cryptos, an asset class already classified as having high volatility.An increase in tensions in Ukraine the country where Washington warned that a Russian invasion could be imminent any day, could also create market turmoil Investors said. Find out moreBitcoin does "really become the most powerful market for momentum trading and there are so many risk factors that could trigger a 40% drop completely out of the blue," said Ed Moya an analyst at Oanda.The volatility of Bitcoin hasn't stopped analysts from trying to determine the fair value of the currency, or to identify potentially significant prices.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Analysts at JPMorgan estimate bitcoin's current fair value as 38,000 dollars, about 15% lower than the current value based on its fluctuation in comparison to that of gold. Gold is a second asset which investors typically use to hedge their portfolios against rising inflation and economic uncertainty.Vanda Research, meanwhile, stated in a recent report that the bulk of bearish bets made on a less bitcoin value were put in at approximately $47,000 "there could be a major short squeeze if the threshold is met, and retail investors return to trading in crypto."While bitcoin's correlations with and the S&P500 reached an all-time-high on January 31, according the data from BofA Global Research, undercutting the argument for those who want to take advantage of the cryptocurrency as an investment to protect against market volatility.Investors can look forward to minutes from the Federal Reserve's most recent meeting on monetary policy due out on Wednesday. Walmart (WMT.N) along with chip maker Nvidia Corp (NVDA.O) will be among the companies that report results, as corporate earnings season kicks off.<img width="452" src="">Some investors are making plans to ride out the volatility of bitcoin, assuming that the potential long-term investment in blockchain technology the built in supply limit, and the impact it creates, will last regardless of the numerous price swings.Jurrien Timmer, director of macro-economics at Fidelity said that the current speculation in cryptocurrencies to the market turmoil that tech stocks endured during that period of dot-com more than two decades ago. It was a boom and bust era that saw only an incredibly small percentage of companies remain."Amazon is still active and Apple is still around , and they're stronger than ever and the assumption is that for bitcoin it'll be identical," says the expert. "But bitcoin isn't immune to those waves of speculation and sentiment."Bitcoin could hit $100 million by 2023, Timmer is claiming, basing his supply/demand models.Others believe that mature cryptocurrencies such as bitcoin and ether will not be able to be able to offer the same amazing gains they have seen since the time of their creation.Instead, they are turning to the world of emerging, alternative coins that are in development to capitalize of the wealth pouring into the space of crypto such as the metaverse and NFTs. http://cqms.skku.edu/b/lecture/818815 accounted for more than 30 billion dollars worth of venture capital investment last year according to PitchBook?.The most popular altcoins are cosmos Terra Luna, and Polkadot which are down 20.5 percent (38%), 20.5%, and 25.5 percent year-to-date, respectively according to coinmarketcap.com.Understanding the risks associated with them and decentralized finance is going to be one of the main challenges for investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very volatile going forward, but there are some significant players on both the institutional side and the retail side that are still growing, so interest continues to grow," said Oanda's Moya.

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