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p>Investors are anticipating further gyrations in bitcoin and other cryptocurrency as concerns about an aggressive Federal Reserve threaten to squelch the appetite for risk across markets.The usual volatility related to cryptocurrency has been on full display over the past few weeks. Bitcoin is the biggest cryptocurrency, is now up about 33% from Jan. 24 and has recently traded at $43,850, rebounding from an inflection point that cut its price by half from its November record-setting price. http://www.docspal.com/viewer?id=- , ether , is up 45% since Jan. 24, at about $3,200 in the wake of a near 56% nosedive from its record high of $4,868, also in November.The proponents of cryptocurrency previously asserted that they are not tied to other assets as a result, bitcoin and its peer have seen huge gains in the recent two years, gaining and gaining momentum alongside stocks as Fed and other central banking institutions pumped unimaginable amounts of stimulus to the global economy. Bitcoin has increased by 1,039% since March 2020 and ether has risen 2,940%, though the gains in both have been interrupted by numerous-stomach churning sales.The recent volatility in the market has come amid a broader price decline driven by investors making adjustments to their portfolios to account for an even more aggressive Fed that is predicted to raise rates as many as seven times in the coming year as it combats the rising cost of living. The index that is the benchmark S&P 500 index (.SPX) is down 5.5 percent over the past year, and the technologically-oriented Nasdaq (.IXIC) has lost 9.3 percent..<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Beliefs that a more aggressive government tightening of the pace moving forward could stifle high-risk assets has made it difficult for traders to maintain their bullish outlook on bitcoin as well as other cryptos. This asset class has already been that has been identified as being extremely volatile.Intensifying tensions in Ukraine which is where Washington warned that a Russian invasion could occur at any time, may lead to market shifts in the future, investors said. Find out moreBitcoin will "really become the ultimate movement trade," and there are plenty of risks that could cause a 40% drop in a flash," said Ed Moya the senior analyst at Oanda.There are a few analysts from trying to gauge its fair value or point out potentially important price levels.Analysts at JPMorgan estimate bitcoin's current valuation at around $38,000 which is around 15% less than its present price - based on its fluctuations in comparison to the volatility of gold. Gold is an asset commonly used by investors to protect their portfolios from volatility in the economy and inflation.Vanda Research, meanwhile, wrote in a report that the bulk of negative bets on the weaker bitcoin price had been placed at about $47,000 "there may be a substantial short-squeeze if this threshold is crossed and retail investors are reintroduced to trading crypto."As for the other side, correlations between the bitcoin and the S&P 500 climbed to the highest level ever on January 31, as per research collected by BofA Global Research, undercutting the logic of those hoping to utilize bitcoin as protection against market volatility.Investors next week are expecting minutes of the Fed's latest monetary policy meeting, due out Wednesday. Walmart (WMT.N) and chip maker Nvidia Corp (NVDA.O) will be among the companies to report resultsas the corporate earnings season rolls on.Certain investors are bracing themselves to weather the volatility in bitcoin, betting that the long-term benefit of blockchain technology, its built in supply limit, and the network effects it has created, will endure despite frequent price swings.Jurrien Timmer director of global macro at Fidelity The Fidelity director compared the present speculation on cryptocurrency to fluctuations in tech stocks seen during the dot-com boom more than two decades ago. It was a boom-and-bust period that saw just a handful of companies left standing."Amazon continues to exist and Apple is also around, and they're both bigger than ever. the assumption is that for bitcoin it's going to be exact," He said. "But it's not immune to the waves of speculation and sentiment."<img width="344" src="">Bitcoin could hit $100,000 as soon as 2023. Timmer is claiming, as per his supply/demand calculations.Some believe that mature cryptocurrency like the bitcoin and ether won't be able for the kind of amazing gains they have seen since their founding.Instead, they're turning to the wide world of alternative coins being created to take advantage of the wealth flowing into the crypto world such as the metaverse and NFTs, which saw 30 billion dollars worth of venture capital investment this year, as per PitchBook?.There are altcoins that 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.Understanding the risks related to their decentralized nature and financial systems is likely to be among principal challenges facing investors in 2022. Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely volatile , but there are some significant players on both the institutional and retail side who are growing, therefore the interest is growing," said Oanda's Moya.

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