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p>Investors are expecting more volatility in bitcoin and other digital currencies, as concerns about a hawkish Federal Reserve threaten to squelch risk appetite across markets.The volatility typically that is characteristic of cryptocurrency has been evident during the last few weeks. Bitcoin is the biggest cryptocurrency, has risen by around 33% since January. 24 and has recently traded at $43,850, bouncing back from it's plunge, which cut its price by half from its November record-setting high. http://www.video-bookmark.com/bookmark/4951028/how-to-buy-bitcoin/ , the ether , is up 45percent since Jan. 24 to around $3,200 after a 56 percent decline from its record-setting $4,868 the same month in November.While proponents of cryptocurrencies once boasted of their lack of a correlation to other assets, bitcoin and its peers gained hugely over the past two years, rising along with stocks while the Fed in addition to other central banks pumped enormous amounts of stimulus into the world economy. Bitcoin has risen 1,039% since March 2020 and Ether has gained 2,940%. However, the rallies in both cryptocurrencies have stopped by several stomach churning sales.Their recent volatility has occurred amid a broad market selloff that was triggered by investors making adjustments to their portfolios to account for an aggressive Fed which is expecting to raise rates 7 times this year while it battles rising inflation. The standard S&P 500 index (.SPX) is down 5.5 percent from the beginning of the year, while the technologically-oriented Nasdaq (.IXIC) dropped 9.3%. lost 9.3 percent..Fears that a ferocious inflationary cycle by central banks going ahead will weaken high-risk assets has made it difficult for traders to keep their optimistic outlook on bitcoin and the other cryptos this asset class is already marked by its high volatility.Rising tensions in Ukraine, where Washington warned that a Russian attack could start any minute, could result in market swings analysts said. read moreBitcoin is "really become the ultimate mover and lots of risk that could result in a 40% decline out of nowhere," said Ed Moya of Oanda, a senior analyst. Oanda.<img width="483" src="">Bitcoin's volatility hasn't stopped some experts from trying to assess the value of the currency or identify potential price levels.Analysts at JPMorgan estimate bitcoin's current fair value as $38,000 , which is about 15% less than its present price based on its relative volatility to that of gold, a different asset investors often use to hedge their portfolios against volatility in the economy and inflation.Vanda Research, meanwhile, released a statement that the majority of negative bets on the weaker bitcoin price were taken at approximately $47,000 "there could be a large short squeeze if that threshold is crossed and retail investors are reintroduced to trading with crypto."<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>While bitcoin's correlations with and the S&P 500 climbed to the highest level ever on January 31st, according to research collected by BofA Global Research, undercutting the claims of those who plan for the use of cryptocurrency as an asset to shield against market volatility.Investors in the coming week can expect minutes of the Fed's last meeting on monetary policy due to be released on Wednesday. Walmart (WMT.N) along with chipmaker Nvidia Corp (NVDA.O) will be among the companies to report resultsas the corporate earnings season begins.Some investors are steeling themselves to take advantage of the volatility of bitcoin, assuming that the long-term benefit associated with blockchain technology its built in supply limit, and the network effect it creates, will last regardless of the frequent price fluctuations.Jurrien Timmer director of global macro at Fidelity described the current speculation on cryptocurrency to volatility experienced by tech stocks during the dot-com era more than 20 years ago, a boom and bust period that resulted in an extremely small number of companies surviving."Amazon is still around , and Apple continues to exist and they're more powerful than ever, and the assumption is that for bitcoin it will be similar," he said. "But it's not immune to these waves of speculation or sentiment."Bitcoin could reach the $100,000 mark by 2023, Timmer told me, Based on his supply-demand models.Others believe that mature cryptocurrencies such as bitcoin and ether have a low chance to provide the eye-watering gains they have notched since their founding.Instead, they are turning to the wide world of alternative currencies that are developing to take advantage of the cash flowing into the crypto space such as the metaverse and NFTs, which accounted for more than $30 billion of venture capital investments this year, as per PitchBook?.Certain altcoins include cosmos Terra Luna, and Polkadot with a drop of around 20.5% 3, 38 and 25.5 percent year-to-date, respectively by coinmarketcap.com.Understanding the risks related to the financial sector and decentralized banking is going to be one of the most difficult issues for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely volatile , but there are significant players on both the institutional and retail side who are growing, so interest is growing," said Oanda's Moya.

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