Bitcoin certainly fell to something like $40,000 USD. Unfortunately for the investors, Bitcoin prices are down more than 40% since reaching an all-time high of $69,000 USD in early November. It seems that Bitcoin is certainly not having a good year. Unexpected moves happened in 2021. Now, the 2022 year is seeing a bad start.
The stock market keeps changing. Some investors expect that rising inflation pressures will force the Federal Reserve to raise interest rates more aggressively than initially anticipated. Investors have to think about the risks they want to take with volatile investments.
“Bitcoin and Ethereum got knocked down early as Treasury yields surged as expectations remain strong that inflation will not ease anytime soon, prompting the Fed to deliver more than a few rate hikes this year,” said Edward Moya, as a senior market analyst at OANDA.
Some hopeful digital currency investors are buying Bitcoin’s latest “low fall”, however some analysts think that Bitcoin prices in the near future will be around the current price. Optimism exists for Bitcoin’s long-term potential. It really seems that short-term volatility will remain elevated for Bitcoin and Ethereum.
Bitcoin really fell below $40,000 for the first time since September on Monday.
News may impact the price of Bitcoin. The Fed warned on Wednesday it may move more aggressively to remove pandemic-era stimulus as it looks to combat high levels of inflation.
Many analysts expect bitcoin to hover around $40,000 for some time.
A selloff could push bitcoin down another 8% from current prices to as low as $38,000.
Volatility measures the degree of change in the price of an investment over a certain period of time. A stock with a price that changes quickly and regularly is certainly more volatile. High volatility generally makes an investment riskier and it also means a greater potential for gains, or losses.
Below are some of the most risky volatile investments:
Oil and Gas Exploratory Drilling
Emerging and Frontier Markets