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p>Investors are preparing for further volatility in bitcoin and other cryptocurrency, as fears of an aggressive Federal Reserve threaten to squelch risks across markets.The volatility traditionally associated with cryptocurrency is at full display during the last few weeks. Bitcoin is the most popular cryptocurrency, has risen by nearly 33% as of Jan. 24. It was last traded at $43,850, rebounding from an inflection point that cut its price in half from November's record high. Its primary rival, Ethereum, is up by about 45% since Jan. 24, at about $3,200 as of Jan. 24, following a 56 percent plunge from its record-setting $4,868 which was also recorded in November.The proponents of cryptocurrency previously exaggerated their lack of connection to other assets, bitcoin and its peers witnessed huge gains over past two years, rising in tandem with stocks as Fed in addition to other central banking institutions pumped massive amounts of stimulus into the global economy. Bitcoin has increased by 1,039 percent from March 2020. Ethereum has grown by 2940%, however the rises of both currencies have been disrupted by stomach-churning selloffs.The recent volatility in the market is part of a larger market selloff that was triggered by investors recalibrating their portfolios to account for an ever-increasingly aggressive Fed that is expecting to raise rates at least seven times over the course of this year, as it combats rising inflation. http://www.astro.wisc.edu/?URL=www.wattpad.com/user/dibblecow5 that is the benchmark S&P 500 index (.SPX) is down 5.5 percent so far this year, while the tech-heavy Nasdaq (.IXIC) lost 9.3%. lost 9.3 percent..Insecurity that a rapid pace of tightening by the central bank moving forward will depress the risky assets have made it difficult for traders to maintain their positive outlook on bitcoin as well as other cryptos and other asset classes, which are already classified as having high volatility.<img width="341" src="">Tensions are rising in Ukraine which is where Washington warned that a Russian invasion could be imminent anytime soon, can cause market volatility Investors warned. read moreBitcoin was "really become the ultimate investment that is gaining momentum and has several risks that could cause a 40% drop in a flash," said Ed Moya an analyst at Oanda.There are a few experts from trying to assess the currency's fair value and identifying potential price points.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Analysts at JPMorgan believe that bitcoin's valuation at around $38,000 which is around 15% less than its current price , based on its fluctuations in comparison to the volatility of gold. Gold is an asset investors often use to hedge their portfolios against price fluctuations and economic uncertainty.Vanda Research, meanwhile, stated in a recent report that the bulk of bearish bets placed on a weaker bitcoin were placed about $47,000 "there could be a major short-squeeze , if the threshold is crossed, and retail investors return to crypto-trading."Furthermore, correlations between bitcoin as well as the S&P 500 rose to an all-time high in January 31st, as per data of BofA Global Research, undercutting any argument that people might make that they can use the cryptocurrency to security against market volatility.Investors this week will get minutes from the Federal Reserve's most recent gathering on monetary policies, which will come out Wednesday. Walmart (WMT.N) as well as chipmaker Nvidia Corp (NVDA.O) will be among the companies reporting resultsas the corporate earnings season rolls on.Some investors are planning to take advantage of the volatility of bitcoin, believing that the longer-term value in blockchain technology its built in supply limit, as well as the network effect it has created, will endure despite frequent price swings.Jurrien Timmer director of macro-economics at Fidelity explained that the current speculation on cryptocurrency to turbulence tech stocks experienced during the dotcom period more than 20 years ago, a boom and bust period that resulted in just a handful of companies remaining."Amazon is still going strong and Apple is around as well and they're bigger than ever . the thinking is that for bitcoin it'll be exactly as well," Mr. Smith said. "But bitcoin isn't immune from these waves of speculation or sentiment."Bitcoin could hit $100 million by 2023, Timmer has said, basing his supply/demand models.Other analysts believe that mature cryptocurrencies like Bitcoin and Ether are unlikely to be able to offer the same impressive gains that they have racked up since their creation.Instead, they're looking towards the vast universe of new, alternative coins that are being created to benefit of the investment flowing into the crypto sector which includes the metaverse as well as NFTs that saw around $30 billion worth worth of venture capital investment in 2017, according to PitchBook?.Some altcoins include cosmos Terra Luna, and Polkadot which are down 20.5% as of 38%, 20.5% and 25.5 percentages year-todate, respectively as per coinmarketcap.com.Understanding the risks linked to them and decentralized financing is going to be one the most difficult issues for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely uncertain in the future, yet there are significant players both on the institutional and retail side that are still increasing, so interest continues to grow," said Oanda's Moya.

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