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p>Investors are expecting more flashes of bitcoin and other cryptocurrency markets, as fears about the direction of the Federal Reserve threaten to squelch risk appetite across markets.The volatility normally associated with cryptocurrency has been evident over the past few weeks. Bitcoin is the biggest cryptocurrency, is now up roughly 33% from January. 24. The price was last seen at $43,850, rebounding from the plunge that cut its price by half from its November record-setting highest. Its main rival, Ether, has gained around 45% since Jan. 24 at around $3,200 in the wake of a near 56% nosedive from its record high of $4,868, and also in November.When advocates of cryptocurrencies exaggerated their lack of connection to other assets as a result, bitcoin and its peer saw huge gains over the recent two years. They've risen and gaining momentum alongside stocks as Fed together with the other major central banks released incredible amounts of stimulus into the global economy. Bitcoin has increased by 1,039% since March 2020 and Ether has gained 2940%, however the rising prices of both cryptocurrencies have been slowed by frequent stomach churning sales.The recent volatility in the market has come amid a broader market decline triggered by investors refining their portfolios to prepare for a more aggressive Fed that is expecting to raise rates as high as seven times this year as it fights rising inflation. The benchmark S&P 500 index (.SPX) has dropped 5.5 percent so far this year, while the technology-focused Nasdaq (.IXIC) also has dropped 9.3 percent..Fears that a ferocious central bank tightening cycle going forward will be a savage blow to risky assets has made difficult for some traders to maintain their optimistic outlook on bitcoin and the other cryptos An asset class already identified with intense volatility.As tensions escalate in Ukraine, where Washington warned that a Russian attack could start anytime, may cause market volatility, investors said. Find out moreBitcoin It has "really become the ultimate trading platform and there are plenty of risks that could trigger a 40% drop in a flash," said Ed Moya Senior Analyst at Oanda.The volatility of Bitcoin's currency hasn't stopped analysts from looking to determine the fair value of the currency, or even identify important price levels.Analysts at JPMorgan estimate bitcoin's current valuation at around $38,000 - some 15% less than its current price , based upon its variation in relation to that of gold. https://anotepad.com/notes/bjnam2ce is a second asset that investors frequently use to protect their portfolios from inflation and economic uncertainty.Vanda Research, meanwhile, said in a recent note that the bulk of betting on bearishness on a declining bitcoin price were placed around $47,000 "there could be a large short squeeze if that threshold is met, and retail investors are reintroduced for crypto-trading."Furthermore, correlations between bitcoin and the S&P 500 reached an all time high on Jan 31according to figures obtained from BofA Global Research, undercutting the arguments for those looking to use bitcoin as an asset to shield against market volatility.Investors will be getting minutes from the last Fed meeting on monetary policy to be sent to be released on Wednesday. Walmart (WMT.N) along with chipmaker Nvidia Corp (NVDA.O) will figure among those releasing resultsas the corporate earnings season kicks off.Certain investors are bracing themselves to ride out the volatility of bitcoin, betting that the value that blockchain technologies offer, its built-in supply limit and the effects it generates, will last despite the constant price swings.Jurrien Timmer director of macro-economics at Fidelity has compared the current speculation about cryptocurrency to the volatility experienced by tech stocks during the dotcom era over two decades ago. It was a boom-and-bust time that saw an incredibly small percentage of companies remain."Amazon is still around , and Apple is also around, and they're bigger than they've ever been and we're thinking that for bitcoin it will be similar," explained the man. "But bitcoin isn't immune from the waves of speculation and sentiment."Bitcoin could reach 100,000 by 2023, Timmer claims, based on his supply/demand models.Some believe that mature cryptocurrency like bitcoin and ether aren't likely to make the astonishing gains that they have enjoyed since their beginning.Instead, they're looking towards the vast universe of new, alternative coins that are being created to benefit of the wealth pouring into the crypto sector which includes the metaverse as well as NFTs. These coins saw an investment of 30 billion from venture capital investments in 2017, according to PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot that are all down by 20.5%, 38% and 25.5 percent year-to-date, respectively, as per coinmarketcap.com.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Understanding the risks associated with them and decentralized financing is likely to be one of the main concerns for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely unstable going forward, however, there are significant players both on the institutional side and the retail side that are still increasing, so interest is still growing," said Oanda's Moya.<img width="440" src="">

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