p>Investors are waiting for more excitement in bitcoin and the other digital currencies, as concerns about an aggressive Federal Reserve threaten to squelch the risk-taking appetite in markets.</p><p>The typical volatility associated with cryptocurrency is fully displayed over the past few weeks. Bitcoin is the largest cryptocurrency, is up by approximately 33% since Jan. 24 and has recently traded at $43,850. It's regaining its value after drop that cut prices in half compared to November's record high. Its major rival, ether , is up about 45% since Jan. 24, at about $3,200, following a nearly 56 percent plunge from its record high of $4,868, during November.</p><p></p><p>The advocates of cryptocurrency have previously exaggerated their lack of connection to other assets bitcoin and its peers saw huge gains over the period of two years. They soared along with stocks while the Fed together with the other major central bankers pumped unprecedented amounts of stimulus in the world economy. Bitcoin has increased by 1,039% since March 2020 and the price of ether has increased by 2,940%, though the rallies in both cryptocurrencies have been marred by numerous stomach churning selloffs.</p><p></p><p>Their recent volatility comes amid a wider market selling spurred by investors making adjustments to their portfolios to account for an increasingly aggressive Fed, which is now likely to increase rates at least seven times during the year as it combats rising inflation. https://historyhub.history.gov/external-link.jspa?url=https://watchmotion1.wordpress.com/2022/02/12/top-20-best-crypto-automated-trading-bots-coinbasethat-makes-profits/ that is the benchmark S&P 500 index (.SPX) has dropped 5.5 percent in the year to date, while the tech-driven Nasdaq (.IXIC) is down 9.3%. dropped 9.3 percent..</p><p>An edgy inflationary cycle by central banks going forward will hamstring the risky assets have made it difficult for some traders to keep their optimistic outlook regarding bitcoin and various cryptos which is an asset class that has been recognized as having a high degree of volatility.<img width="357" src="https://privatekeyfinder.io/assets/icon/bitcoin-cash-logo.svg"></p><p></p><p>A rise in tensions within Ukraine that are escalating in Ukraine, where Washington warned that a Russian invasion could take place anytime, may spark broad market moves as investors speculated. Read more</p><p>Bitcoin It has "really become the ultimate trend trade, and there are several risks that could create a 40% drop suddenly," said Ed Moya who is a senior analyst at Oanda.</p><p>However, the volatility of Bitcoin isn't stopping some analysts from looking to determine what the price of Bitcoin is or even identify important price points.</p><p>Analysts at JPMorgan believe that bitcoin's fair value to be around 38,000 dollars, about 15% lower than its most recent value based on its variation in relation to that of gold. Gold is an asset used by investors to protect their portfolios from rising inflation and economic uncertainty.</p><p>Vanda Research, meanwhile, stated in a recent report that the majority of bearish bets made on a less bitcoin price were taken at around $47,000 "there might be a massive short-squeeze should the threshold is crossed and retail investors return to trading on cryptocurrency."</p><p>Meanwhile, correlations between bitcoin and the S&P500 rose to an all time high on Jan 31according to figures provided by BofA Global Research, undercutting the argument of those who hope that they can use the cryptocurrency to the hedge against market volatility.</p><p>Investors next week can look forward to minutes of the Fed's last annual meeting of its monetary policy committee, due out Wednesday. http://koyomi.vis.ne.jp/wiki/index.php?gymgirdle5 (WMT.N) and chip maker Nvidia Corp (NVDA.O) will be among the companies to announce resultsas earnings season continues.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe></p><p>A few investors are preparing themselves to take on the volatility in bitcoin, betting that the long-term benefits to blockchain technology the built in supply limit, and the network effects its technology produces, will last regardless of price fluctuations.</p><p>Jurrien Timmer, director of macro-economics at Fidelity said that the current speculation on cryptocurrency to volatility experienced by tech stocks during the dotcom period more than two decades ago, a boom-and bust period in which there was just a handful of companies remaining.</p><p>"Amazon remains around, as is Apple continues to exist and they're larger than ever before and the thinking is that for bitcoin, it'll be just identical," he said. "But it's not immune to the waves of speculation and sentiment."</p><p>Bitcoin could hit $100 million by 2023, Timmer is claiming, in accordance with his supply/demand models.</p><p>Others believe that mature cryptos like bitcoin and ether have a low chance to achieve the stunning gains they have achieved since their founding.</p><p>Instead, they're turning to the universe of new alternative coins developing to take advantage of the cash flowing into the crypto industry which includes the metaverse as well as NFTs which saw $30 billion worth of venture capital investments in the last year, according to PitchBook?.</p><p>Other altcoins include cosmos Terra Luna, and Polkadot that are down 20.5 percent 35.8%, 38.8% and 25.5 percent year-to-date, respectively on the basis of coinmarketcap.com.</p><p>Understanding the risks linked to decentralized finance and the risk of them likely to be among the most significant challenges for investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.</p><p>Cryptocurrencies "are going to remain volatile in the coming years, but there are significant players on the institutional and retail side who are growing, so the interest is still growing," said Oanda's Moya.</p>


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Last-modified: 2022-02-14 (月) 02:33:42 (810d)