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p>Investors are bracing for more volatility in bitcoin and other cryptocurrencies, while worries about the hawkishness of the Federal Reserve threaten to squelch the market's appetite for risk.The usual volatility associated with cryptocurrency was on full display over the past few weeks. http://www.docspal.com/viewer?id=- , the largest cryptocurrency, has increased by 33% in the past month since Jan. 24. It was last traded at $43,850, bouncing back from falling to a point that cut the value by half from the record-setting peak. Its main rival, ether , is up 45percent since Jan. 24 at around $3,200 after a nearly 56 percent drop from the record high of $4,868, at the time of the November.The advocates of cryptocurrency have previously claimed that they had no connection to other assets Bitcoin and its counterparts were able to make huge gains during the past two years, rising in tandem with stocks as Fed as well as other central banks introduced huge amounts of stimulus into the world economy. Bitcoin has risen 1,039 percent since March 2019, and ether has risen 2,940%, but the increase in both of them has seen a flurry of stomach-churning sales.Their recent volatility is part of a larger price decline driven by investors revising their portfolios so that they account for an ever-increasingly aggressive Fed that is predicted to raise rates at least seven times this year as it is fighting rising inflation. The most widely used S&P 500 index (.SPX) has dropped 5.5 percent year-to-date, whereas the technology-focused Nasdaq (.IXIC) had dropped 9.3 percent..<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Beliefs that a more aggressive inflationary cycle by central banks moving ahead will weaken risky assets has made it difficult for some traders to keep their optimistic view on bitcoin and the other cryptos, an asset class already known for its extreme volatility.A rise in tensions within Ukraine In Ukraine, where Washington warned that a Russian attack could start at any moment, could result in market swings investors have warned. read more<img width="391" src="">Bitcoin is "really become the ultimate the market that has momentum, and there's numerous risks that could cause a 40% drop seemingly out of thin air," said Ed Moya as the senior analyst of Oanda.The volatility of Bitcoin doesn't stop some analysts from seeking to understand the currency's fair value or point out potential prices.Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 , or 15% below its current value based on its fluctuation in comparison to that of gold, a different asset traders often use to hedge their portfolios against rising inflation and economic uncertainty.Vanda Research, meanwhile, stated in a recent report that most of the bearish bets placed on a weaker bitcoin price were entered at around $47,000, and "there might be a massive short-squeeze , if the threshold is met and retail investors are reintroduced to trading in crypto."While bitcoin's correlations with and the S&P 500 reached an all-time high on January 31 according to data obtained from BofA Global Research, undercutting any argument that people might make for the use of cryptocurrency as the hedge against market volatility.Investors next week are expecting minutes of the Fed's latest monetary policy meeting, due out Wednesday. Walmart (WMT.N) in addition to chip maker Nvidia Corp (NVDA.O) will figure among those releasing numbers as corporate earnings season rolls on.Some investors are ready to weather the volatility in bitcoin, hoping that the long-term benefit from blockchain technology its built in supply limit, and the impact it brings, will be able to endure despite the frequent price changes.Jurrien Timmer director of macro-economics at Fidelity The Fidelity director compared the present speculation about cryptocurrency to the turmoil experienced by tech stocks in the dotcom boom nearly two decades ago. boom-and-bust time that saw relatively few businesses left standing."Amazon is still around , and Apple is still in existence and they're more powerful than ever, and the assumption is that for bitcoin it will be much the same" his statement reads. "But bitcoin isn't immune from those waves of speculation and sentiment."Bitcoin could reach $100,000 as soon as 2023. Timmer says, basing his supply/demand models.Others are of the opinion that mature currencies like Bitcoin and Ether are unlikely to be able to offer the same eye-watering gains they have notched since their creation.Instead, they're looking to the vast world of, alternative coins that are designed to take advantage of the investment flowing into the crypto market such as the metaverse and NFTs, which saw more than $30 billion of venture capital investments last year, according to PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot and are trading at around 20.5% 38%, 20.5% and 25.5% year-to-date, respectively according to coinmarketcap.com.Understanding the risks associated with their decentralized nature and financial systems is going to be one the most important challenges for investors in 2022. Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely uncertain in the future, yet there are some major players on the institutional and retail side who are growing, so the interest continues to grow," said Oanda's Moya.

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