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p>Investors are looking forward to more flashes of bitcoin and other cryptocurrency, as fears of an overly aggressive Federal Reserve threaten to squelch the market's appetite for risk.The volatility typically related to cryptocurrency has been displayed during the last few weeks. Bitcoin is the most popular cryptocurrency, has been up about 33% from Jan. 24. The price was last seen at $43,850. https://whipsoup9.tumblr.com/post/676009496416518144/how-to-buy-bitcoin regaining its value after it's plunge, which cut its prices in half compared to November's record high. Its major rival, Ether, has gained around 45percent since January. 24 when it was trading around $3200 and has seen a nearly 56 percent plunge from its record-setting $4,868 the same month in November.When advocates of cryptocurrencies claimed that they had no connection to other assets bitcoin and its peers gained hugely over the last two years. They have risen together with stocks, as the Fed together with the other major central banking institutions pumped massive amounts of stimulus into the global economy. Bitcoin has increased by 1,039 percent since March 2020, and the ether price has increased 2,940%, but the increases in both cryptocurrencies have been interrupted by numerous-stomach churning selling.The recent volatility in the market comes amid a wider market selling spurred by investors shifting their portfolios around to account for a more aggressive Fed which is forecast to raise rates as high as seven times this year to combats a rising rate of inflation. The benchmark S&P 500 index (.SPX) is down 5.5 percentage year-to date, while the tech-heavy Nasdaq (.IXIC) had lost 9.3%.A fear that an aggressive Central Bank tightening process going forward will be a savage blow to risky assets has made difficult for traders to maintain their bullish outlook for bitcoin and other cryptos and other asset classes, which are already is characterized by high volatility.Rising tensions in Ukraine the country where Washington warned that a Russian invasion could begin at any time, may spark broad market moves analysts said. learn moreBitcoin is "really become the most powerful market for momentum trading and there are plenty of risks that could result in a 40% decline in a flash," said Ed Moya Oanda's senior analyst. Oanda.Bitcoin's volatility hasn't stopped some analysts from seeking to understand the fair value of the currency, or even identify important price levels.Analysts at JPMorgan estimate bitcoin's current price at around $38,000 , or 15% lower than the current price , based on its variability in comparison with the volatility of gold. Gold is a second asset investors often use to protect their portfolios from rising inflation and economic uncertainty.Vanda Research, meanwhile, released a statement that the bulk of bearish bets on a lower bitcoin price were placed approximately $47,000 "there might be a massive short squeeze if that threshold is crossed, and retail investors are reintroduced back to crypto-trading."<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Additionally, the correlations between bitcoin as well as the S&P 500 rose to an all-time record on January 31st, according to research from BofA Global Research, undercutting the case for those hoping that they can use the cryptocurrency to security against market volatility.Investors are expected next week to receive minutes from the most recent Federal Reserve session on monetary policy that will be due to be released on Wednesday. Walmart (WMT.N) in addition to chip maker Nvidia Corp (NVDA.O) will be among the companies that will release resultsas earnings season rolls on.Some investors are making plans to take advantage of the volatility of bitcoin, assuming that the potential long-term investment to blockchain technology its built-in supply limit as well as the network effect it generates, will last despite frequent price swings.Jurrien Timmer, director of global macro at Fidelity, likened the current speculation in cryptocurrencies to the volatility experienced by tech stocks during the dot-com bubble more than two decades ago. boom and bust period that resulted in very few companies remaining."Amazon is still around , and Apple is still around , and they're bigger than they've ever been and the assumption is that for bitcoin it will be much the same" explained the man. "But bitcoin isn't immune to those waves of speculation and sentiment."Bitcoin could reach the $100,000 mark by 2023. Timmer says, based on his supply/demand models.Others believe that mature cryptocurrencies such as bitcoin and ether will not be able to provide the breathtaking gains they have experienced since their inception.Instead, they're turning at the world of new alternative coins in development to capitalize of the wealth flowing into the cryptocurrency space, including the metaverse and NFTs that saw 30 billion dollars worth of venture capital investment this year, as per PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot in the range of 20.5% 38%, 20.5% and 25.5% year-to-date, respectively in accordance with coinmarketcap.com.<img width="378" src="">Understanding the risks linked to the financial sector and decentralized banking is likely to be among principal challenges facing investors in 2022. Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely volatile for the foreseeable future, but there are significant players on both the institutional and retail side who are growing, so interest is still growing," said Oanda's Moya.

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