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p>Investors are preparing for further flashes of bitcoin and other cryptocurrency markets, as fears about an overly hawkish Federal Reserve threaten to squelch the market's appetite for risk.The usual volatility that is characteristic of cryptocurrency has been evident during the last few weeks. Bitcoin is the largest cryptocurrency, has gained nearly 33% as of Jan. 24 and has recently traded at $43,850, rebounding from falling to a point that cut the price by half from its November record-setting high. The main competitor, Ether, has gained around 45percent since Jan. 24 to around $3,200 in the wake of a near 56 percent drop from its record-setting $4,868 and also in November.The advocates of cryptocurrency have previously boasted of their lack of a correlation to other assets bitcoin and other cryptocurrencies experienced huge gains over the recent two years, gaining together with stocks, as the Fed and other central bankers pumped unimaginable amounts of stimulus to the global economy. Bitcoin has increased by 1,039 percent from March 2020. Ethereum has increased by 2,940%. However, the increases in both cryptocurrencies have been marred by numerous stomach churning selling.The recent volatility in the market is in line with a larger market selloff caused by investors updating their portfolios to make room for an even more aggressive Fed that is likely to increase rates at least seven times this year while it battles rising inflation. http://cqms.skku.edu/b/lecture/817747 used S&P 500 index (.SPX) has dropped 5.5 percentage year-to date, while the technology-focused Nasdaq (.IXIC) have dropped 9.3%.Beliefs that a more aggressive inflationary cycle by central banks moving ahead will weaken volatile assets has made difficult for traders to maintain their positive view for bitcoin and cryptos and other asset classes, which are already identified with intense volatility.A rise in tensions within Ukraine in Ukraine, where Washington warned that a Russian invasion could start anytime, may spark broad market moves Investors said. Learn moreBitcoin does "really become the most powerful trading platform and there are numerous risks that could trigger a 40% drop that appears out of thin air," said Ed Moya, senior analyst at Oanda.Its volatility in Bitcoin hasn't stopped analysts from seeking to understand the value of the currency or identify potential price points.Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 , which is 15% lower than the current price - based on its volatile nature in comparison to that of gold, a different asset used by investors to hedge their portfolios against inflation and economic uncertainty.Vanda Research, meanwhile, said in a recent note that the majority of bearish bets on a weaker bitcoin value were put in at about $47,000 "there may be a large short-squeeze if this threshold is reached and retail investors are reintroduced for crypto-trading."While bitcoin's correlations with and the S&P500 hit an all-time high in January 31st, as per data from BofA Global Research, undercutting any argument that people might make for the use of cryptocurrency as an asset to shield against market volatility.Investors are expected next week to receive minutes from the most recent Fed meeting on monetary policy, which is due out Wednesday. Walmart (WMT.N) along with chipmaker Nvidia Corp (NVDA.O) will include among the companies releasing results, as corporate earnings season kicks off.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Some investors are steeling themselves to take advantage of the volatility of bitcoin, betting that the long-term benefit to blockchain technology its built-in supply limit and the effect on networks it has created, will endure regardless of the frequent price fluctuations.Jurrien Timmer, director of macro-economics at Fidelity and Fidelity, compared the current speculation on cryptocurrency to fluctuations in tech stocks seen during the dot-com bubble more than 20 years ago, a boom and bust period that resulted in just a handful of firms left standing.<img width="495" src="">"Amazon remains around, as is Apple is still around and they're bigger than ever . the theory is that for bitcoin, it'll be just exact," He said. "But it's not immune to those waves of speculation and sentiment."Bitcoin could hit $100 million by 2023, Timmer believes, Based on his supply-demand models.Other analysts believe that mature cryptocurrencies like bitcoin and ether will not be able to provide the stunning gains they have achieved since their inception.Instead, they are looking to the vast world of alternative coins being created to benefit of the wealth flowing into the cryptocurrency space, including the metaverse and NFTs. https://baitjoke8.tumblr.com/post/676080134887014400/how-to-buy-bitcoin saw $30 billion worth of venture capital investments last year, as reported by PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot that are down 20.5 percent, 38% and 25.5% year-to-date, respectively, from coinmarketcap.com.The understanding of the risks that come with these and decentralized finance is likely to be among the most important challenges for investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very unstable going forward, however, there are some significant players on both the institutional side and the retail side that are growing, so interest is growing," said Oanda's Moya.

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