Notes

Wall St Week Ahead Crypto investors are in for more uncertainty following the rocky start of 2022.


Investors are ready for further volatility in bitcoin and other digital currencies, as concerns about an overly aggressive Federal Reserve threaten to squelch investors' appetite to take risks across the markets.



The volatility that is typically that is characteristic of cryptocurrency has been prominent during the last few weeks. Bitcoin , the largest cryptocurrency, is up by around 33% since Jan. 24. royal q robot binance has been trading at $43,850, bouncing back from a tumble that cut its price by half from its November record high. kool g rap make money , ether is up 45% since Jan. 24 to around $3,200 with a 58 percent plunge from its record-setting $4,868 and also in November.








Although those who advocated for cryptocurrencies previously touted their lack of correlation to other assets Bitcoin and its counterparts experienced huge gains over the recent two years, gaining along with stocks while the Fed along with other central banks pumped incredible amounts of stimulus into the global economy. gta v make money has risen 1,039 percent since March of 2020 and Ether has gained 2,940%. However, the rising prices of both cryptocurrencies have seen a flurry of stomach-churning selling.








The recent volatility in the market is a result of a larger downturn in the market, triggered by people recalibrating their portfolios to account for a more aggressive Fed that is forecast to raise rates as high as seven times in 2018 as it battles rising inflation. The benchmark S&P 500 index (.SPX) has dropped 5.5 percent year-to-date, whereas the tech-driven Nasdaq (.IXIC) is down 9.3%. lost 9.3%.



An edgy government tightening of the pace going forward will depress more risky assets have made difficult for traders to maintain their positive view regarding bitcoin and various cryptos An asset class already identified with intense volatility.








Rising tensions in Ukraine and Ukraine, where Washington warned a Russian invasion could occur anytime soon, can trigger market movements across the board, investors said. read more




Bitcoin could "really become the ultimate momentum trade and there are so many risk factors that could cause a 40% loss suddenly," said Ed Moya who is a senior analyst at Oanda.



Some analysts from trying to determine what the price of Bitcoin is or even identify important price levels.



Analysts at JPMorgan believe that bitcoin's actual value to be about $38,000 - some 15% less than its current price , based upon its variability in comparison with the volatility of gold, an alternative asset which investors typically use to hedge their portfolios against risk of economic instability and inflation.



Vanda Research, meanwhile, has stated in a note that most of the bearish bets based on a weaker bitcoin price were placed at approximately $47,000 "there might be a massive short-squeeze if the aforementioned threshold is exceeded, and retail investors are reintroduced back to crypto-trading."



Additionally, the correlations between bitcoin and the S&P 500 reached an all-time record on January 31according to figures provided by BofA Global Research, undercutting the arguments for those looking for the use of cryptocurrency as an instrument to hedge against market volatility.



Investors in the coming week can expect minutes from the last Fed meeting on monetary policy due to be released on Wednesday. Walmart (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will include among the companies releasing resultsas earnings season continues.




Some investors are steeling themselves to take advantage of the volatility in bitcoin, believing that the long-term benefit of blockchain technology, the built-in supply limit and the effect that it produces, will endure despite the frequent price changes.



Jurrien Timmer, director of macro-economics at Fidelity has compared the current cryptocurrency speculation to volatile tech stocks that were experiencing during the dot-com boom more than 20 years ago, a boom and bust period that resulted in relatively few companies left standing.



"Amazon continues to exist and Apple is still around , and they're bigger than they've ever been and it's believed that for bitcoin it's going to be identical," the analyst said. "But royal q robot binance review 's not immune to these waves of speculation or sentiment."



Bitcoin could hit 100,000 by 2023, Timmer says, following his supply/demand modeling.



Other analysts believe that mature cryptocurrencies like bitcoin and ether will not be able to produce the breathtaking gains they have experienced since their beginning.



Instead, they are looking at the possibilities of new alternative coins developing to take advantage of the wealth flowing into the cryptocurrency space such as the metaverse and NFTs. NFTs accounted for more than $30,000 worth of venture capital investment in 2017, according to PitchBook.



Certain altcoins include cosmos Terra Luna, and Polkadot and are trading at around 20.5% (38%), 20.5%, and 25.5 percentages year-todate, respectively on the basis of coinmarketcap.com.



Knowing the risks associated with the financial sector and decentralized banking is likely to be among principal challenges facing investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.



Cryptocurrencies "are likely to remain extremely volatile going forward, but there are significant players both on the institutional and retail side that are still expanding, and so the interest is still growing," said Oanda's Moya.




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