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p>Investors are looking forward to more volatility in bitcoin and other cryptocurrencies, amid concerns that the aggressiveness of the Federal Reserve threaten to squelch market risk appetite.The extreme volatility usually in cryptocurrencies has been visible over the past few weeks. Bitcoin is the largest cryptocurrency, is climbing by 33% in the past month since Jan. 24 and has recently traded at $43,850. This is a rebound from dropping that cut its value by half from the record-setting high. http://cqms.skku.edu/b/lecture/814349 , ether is up 45percent from Jan. 24 and is trading at $3,200 after a nearly 56 percent plunge from its record high of $4,868, that was in November.Even though advocates of cryptocurrencies claimed that they had no connection to other assets the bitcoin market and its competitors enjoyed huge gains over last two years, rallying together with stocks, as the Fed or other central bankers pumped enormous amounts of stimulus into the global economy. Bitcoin has increased by 1,039 percent since March 2020, and Ethereum has grown by 2,940%, though the gains in both have seen a flurry of stomach-churning sales.The recent volatility in the market is in line with a larger market selloff that was triggered by investors making adjustments to their portfolios to account for an increasingly aggressive Fed, which is now likely to increase rates more than seven times in 2018 as it fights rising inflation. The standard S&P 500 index (.SPX) has dropped 5.5 percent since the start of the year, and the technologically-oriented Nasdaq (.IXIC) was down by 9.3%. lost 9.3 percent..Fears that a ferocious pace of tightening by the central bank moving forward will hamstring the risky assets have made it difficult for some traders to maintain their positive view for bitcoin and cryptos the asset class known for its extreme volatility.Intensifying tensions in Ukraine that are escalating in Ukraine, where Washington warned that a Russian invasion could take place any minute, could generate market-wide volatility according to investors. learn moreBitcoin It has "really become the most powerful the market that has momentum, and there's so many risks that can cause a 40% drop that appears out of thin air," said Ed Moya an analyst at Oanda.The volatility of Bitcoin's currency hasn't stopped analysts from seeking to understand whether the currency is worth its value or even identify important price levels.Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 , which is 15% below its current price based upon its variation in relation to that for gold, another investment used by investors to protect their portfolios from rising inflation and economic uncertainty.Vanda Research, meanwhile, reported in a recent document that the majority of bets that were speculative on a lower bitcoin price were taken at around $47,000 "there could be a huge short-squeeze , if the threshold is crossed and retail investors are reintroduced back to crypto-trading."In addition, the correlations between bitcoin and the S&P 500 reached the highest level ever on January 31, according data at BofA Global Research, undercutting the logic of those hoping to use the cryptocurrency as an investment to protect against market volatility.Investors next week can look forward to minutes of the Fed's recent meeting on monetary policy to be sent out Wednesday. Walmart (WMT.N) in addition to chip maker Nvidia Corp (NVDA.O) will be among the companies to report results, as corporate earnings season kicks off.A number of investors are trying to take advantage of the volatility of bitcoin, assuming that the potential long-term investment of blockchain technology, the built-in supply limit as well as the network effect it produces, will endure regardless of the frequent price fluctuations.Jurrien Timmer, director of global macro at Fidelity The Fidelity director compared the present Bitcoin speculation to turbulence tech stocks experienced during the dot-com bubble more than two decades ago. boom and bust cycle that left relatively few firms left standing."Amazon remains in business and Apple remains in business and they're stronger than ever and the idea is that with bitcoin, it'll do like Apple," his statement reads. "But it's not immune to those waves of speculation and sentiment."Bitcoin could hit the $100,000 mark by 2023. Timmer says, following his supply/demand modeling.Others believe that mature cryptocurrencies such as the bitcoin and ether won't be able to deliver the kind of eye-watering gains they have notched since their founding.<img width="310" src="https://i1.wp.com/www.techdigest.tv/wp-content/uploads/2014/07/bitcoin2.png?resize=795%2C580&ssl=1">Instead, they're turning at the universe of brand new, alternative coins that are creating to profit of the money pouring into the crypto world such as the metaverse and NFTs, which accounted for 30 billion dollars worth of venture capital investment last year according to PitchBook?.Other altcoins include cosmos Terra Luna, and Polkadot in the range of 20.5% 3, 38 and 25.5 percent over the past year, respectively from coinmarketcap.com.Understanding the risks linked to them and decentralized finance is going to be one the main challenges for investors by 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Cryptocurrencies "are going to be extremely unstable going forward, however, there are some significant players on both the institutional side and the retail side that are expanding, and so the interest is still growing," said Oanda's Moya.

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