p>Investors are ready for further flashes of bitcoin and other cryptocurrencies, while worries about an overly hawkish Federal Reserve threaten to squelch the appetite for risk across markets.</p><img width="467" src="https://i1.chainbulletin.com/img/2020/10/the-chain-bulletin-bitcoin-mining-map.jpg"><p>The volatility traditionally associated with cryptocurrency was visible during the last few weeks. Bitcoin , the largest cryptocurrency, is up by around 33% since Jan. 24 and has recently traded at $43,850. The price has risen from dropping that cut its price by half since November's record highest. Its primary rival, ether is up 45percent since January. 24 at around $3,200 in the wake of a near 56 percent drop from its record high of $4,868, during November.</p><p></p><p>When advocates of cryptocurrencies touted their lack of correlation to other assets the bitcoin market and its competitors witnessed huge gains over last two years, rallying alongside stocks as Fed and the rest of central banks pumped unprecedented levels of stimulus into the global economy. Bitcoin has risen 1,039 percent since the beginning of March, while the price of ether has increased by 2,940%. The increases in both cryptocurrencies have been interrupted by numerous-stomach churning selling.</p><p></p><p>The recent volatility in the market has come amid a broader downturn in the market, triggered by people updating their portfolios to make room for an increasingly aggressive Fed, which is now anticipating to raise rates by in the range of seven times this year as it combats the rising cost of living. The benchmark S&P 500 index (.SPX) has dropped 5.5 percent year-to-date, whereas the tech-driven Nasdaq (.IXIC) dropped 9.3%. lost 9.3 percent..</p><p>Fears that a ferocious inflationary cycle by central banks going forward will hurt risky assets has made difficult for some traders to keep their optimistic view on bitcoin as well as other cryptos and other asset classes, which are already marked by its high volatility.</p><p></p><p>Tensions are rising in Ukraine as Washington warned that a Russian invasion could start any time, could lead to market shifts in the future Investors warned. find out more</p><p>Bitcoin was "really become the ultimate trading platform and there are several risks that could lead to a 40% drop suddenly," said Ed Moya Oanda's senior analyst. Oanda.</p><p>The volatility of Bitcoin doesn't stop some experts from trying to assess the currency's fair value or pinpoint potential price points.</p><p>Analysts at JPMorgan believe that bitcoin's price at around $38,000 . This is roughly 15% less than its current value based on its relative volatility to that of gold. Gold is an asset used by investors to protect their portfolios from volatility in the economy and inflation.</p><p>Vanda Research, meanwhile, reported in a recent document that most of the bearish bets made on a less bitcoin price were entered at around $47,000, and "there could be a large short-squeeze , if the threshold is met and retail investors return to trading on cryptocurrency."</p><p>However, the correlations between Bitcoin and the S&P500 reached an all-time record on January 31st, as per data at BofA Global Research, undercutting the argument for those who want to use bitcoin as an investment to protect against market volatility.</p><p>Investors are expected next week to receive minutes of the Fed's recent annual meeting of its monetary policy committee, due out on Wednesday. http://bvkrongbong.com/Default.aspx?tabid=120&ch=425740 (WMT.N) and chip maker Nvidia Corp (NVDA.O) will be among the companies that report results, as corporate earnings season gets underway.</p><p>Some investors are planning to ride out the volatility of bitcoin, assuming that the long-term benefit that blockchain technologies offer, its built in supply limit, and the effects it has created, will endure despite the constant price swings.</p><p>Jurrien Timmer director of macro-economics at Fidelity The Fidelity director compared the present Bitcoin speculation to fluctuations in tech stocks seen during the dot-com bubble more than 20 years ago, a boom-and -bust time period that saw the most minuscule number of companies remaining.</p><p>"Amazon is still around , and Apple continues to exist and they're larger than ever before and the theory is that for bitcoin it'll be as well," The man said. "But it's not immune to these waves of speculation or sentiment."</p><p>Bitcoin could hit $100 million by 2023. Timmer claimed, Based on his supply-demand models.</p><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe><p>Some believe that mature cryptocurrency like bitcoin and ether are unlikely to deliver the kind of impressive gains that they have racked up since their creation.</p><p>Instead, they are looking to the wide world of, alternative coins that are in development to capitalize of the money flowing into the crypto sector such as the metaverse and NFTs. These coins saw around $30 billion worth worth of venture capital investments in 2017, according to PitchBook?.</p><p>A few altcoins are cosmos Terra Luna, and Polkadot which are down 20.5% in the past three months, with 38% and 25.5 percentages year-todate, respectively, on the basis of coinmarketcap.com.</p><p>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 likely to remain extremely volatile for the foreseeable future, but there are significant players both on the institutional side and the retail side that are still expanding, and so the interest is still growing," said Oanda's Moya.</p>


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Last-modified: 2022-02-13 (日) 22:19:39 (811d)