p>Investors are anticipating further exuberance in bitcoin and cryptocurrency, as fears of an overly hawkish Federal Reserve threaten to squelch risk appetite across markets.</p><p>The volatility normally in cryptocurrencies has been on full display over the past few weeks. Bitcoin is the biggest cryptocurrency, has gained about 33% from Jan. 24 and is currently trading at $43,850, rebounding from the plunge that cut its value by half from the record price. The primary competitor, Ether, has gained around 45percent since Jan. 24 with a price of around $3200 and has seen a nearly 56 percent plunge from its record high of $4,868, at the time of the November.</p><p></p><p>Though advocates of cryptocurrencies have stated that they have no correlation to other assets bitcoin and other cryptocurrencies have seen huge gains in the past two years, rising like stocks when the Fed as well as other central banks pumped massive amounts of stimulus into the global economy. http://cqms.skku.edu/b/lecture/817202 has risen 1,039 percent since March 2019, and ether has risen 2940%. But the surges in both cryptocurrency have been slowed by a series of stomach-churning selloffs.</p><p></p><p>The recent volatility in the market has occurred in the midst of a wider market selling spurred by investors revising their portfolios so that they account for an even more aggressive Fed that is anticipated to raise rates up to seven times over the course of this year, as it combats rising inflation. http://www.benhvienvinhchau.com/Default.aspx?tabid=120&ch=18073 used S&P 500 index (.SPX) is down 5.5 percent year-to-date, whereas the high-tech Nasdaq (.IXIC) dropped 9.3%. dropped 9.3%.</p><p>Beliefs that a more aggressive government tightening of the pace moving forward will hurt risky assets has made difficult for traders to maintain their optimistic outlook on bitcoin and other cryptocurrency. This asset class has already been associated with extreme volatility.</p><p></p><p>As tensions escalate in Ukraine In Ukraine, where Washington warned a Russian invasion could commence at any time, may spark broad market moves, investors said. Read more</p><p>Bitcoin has "really become the ultimate the market that has momentum, and there's multiple risks that could cause a 40% drop completely out of the blue," said Ed Moya who is a senior analyst at Oanda.</p><p>However, the volatility of Bitcoin isn't stopping some analysts from trying to determine the true value of the currency or point out potential price points.</p><p>Analysts at JPMorgan believe that bitcoin's fair value at around 38,000 dollars, about 15% below its current value based on its variability in comparison with the volatility of gold. Gold is an asset that investors frequently use to protect their portfolios from market volatility and inflation.</p><p>Vanda Research, meanwhile, said in a recent note that the majority of bets that were speculative on a lower bitcoin price had been placed at around $47,000, and "there could be a large short squeeze if that threshold is met and retail investors return to trading in crypto."</p><p>Furthermore, correlations between bitcoin and the S&P 500 climbed to the highest level ever on January 31st, according to research that came from BofA Global Research, undercutting the argument for those who want to utilize the cryptocurrency as an instrument to hedge against market volatility.<img width="360" src="https://sanewnetworks.com/wp-content/uploads/2022/02/How-Does-Bitcoin-Mining-Work-696x439.jpg"></p><p>Investors next week can look forward to minutes from the Fed's most recent meeting on monetary policy due to be released on Wednesday. Walmart (WMT.N) in addition to chip maker Nvidia Corp (NVDA.O) will be among the companies to announce resultsas earnings season begins.</p><p>A number of investors are trying to ride out the volatility of bitcoin, hoping that the long-term benefit in blockchain technology its built-in supply limit as well as the network effect it brings, will be able to endure despite the frequent price changes.</p><p>Jurrien Timmer director of macro-economics at Fidelity described the current crypto market's volatility to the market turmoil that tech stocks endured during the dot-com boom more than two decades ago. https://controlc.com/c0a421c8 was a boom-and bust period in which there was the most minuscule number of companies remain.</p><p>"Amazon remains around, as is Apple is around as well and the two are bigger than ever. the assumption is that for bitcoin it's going to be much the same" He said. "But bitcoin isn't immune from these waves of speculation or sentiment."</p><p>Bitcoin could reach $100,000 as soon as 2023, Timmer claimed, according to his supply/demand model.</p><p>Others believe that mature cryptos like bitcoin and ether have a low chance to be able to offer the same breathtaking gains they have experienced since the time of their creation.</p><p>Instead, they are looking towards the vast universe of new alternative currencies that are designed to take advantage of the wealth flowing into the crypto world, including the metaverse and NFTs, which received the equivalent of $30 billion in venture capital investments last year according to PitchBook?.</p><p>There are a few altcoins like cosmos, Terra Luna, and Polkadot and are trading at around 20.5% (38%), 20.5%, and 25.5 percentage year-to-date, according to coinmarketcap.com.</p><p><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Knowing the risks associated with their decentralized nature and financial systems is going to be one of the main concerns for investors in 2022. Lily Francus, director of quantitative research strategy at Moody's Analytics.</p><p>Cryptocurrencies "are going to remain very volatile in the coming years, but there are significant players both on the institutional and retail side that are increasing, so interest continues to grow," said Oanda's Moya.</p>


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Last-modified: 2022-02-13 (日) 21:01:24 (811d)