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p>Investors are expecting more variations in bitcoin, and other cryptocurrency as concerns about the hawkishness of the Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The volatility normally associated with cryptocurrencies is visible over the past few weeks. Bitcoin is the most popular cryptocurrency, is now up 33% in the past month since Jan. 24. The price was last seen at $43,850. It's rebounding from dropping that cut its price by half since November's record-setting price. Its primary rival, ether , is up 45percent since Jan. 24 when it was trading around $3200 in the wake of a near 56 percent decline from its record high of $4,868, which was also recorded in November.When advocates of cryptocurrencies asserted that they are not tied to other assets as a result, bitcoin and its peer gained hugely over the two years that followed, rising like stocks when the Fed or other central bankers pumped unprecedented levels of stimulus into the world economy. Bitcoin has increased by 1,039 percent since the beginning of March, while the ether price has increased 2,940%, though the increases in both cryptocurrencies have been slowed by frequent stomach churning selloffs.<img width="329" src="">The recent volatility in the market has occurred in the midst of a wider downturn in the market, triggered by people who are recalibrating their portfolios in preparation for an ever-increasingly aggressive Fed that is expected to raise rates up to seven times over the course of this year, as it combats the escalating inflation. https://dibblecan9.werite.net/post/2022/02/12/How-to-Buy-Bitcoin &P 500 index (.SPX) is down 5.5 percent so far this year, while the technology-focused Nasdaq (.IXIC) has lost 9.3%.Beliefs that a more aggressive current tightening in the central banking system going forward will depress these assets has made it difficult for some traders to maintain their optimistic outlook regarding bitcoin and various cryptos. This asset class has already been identified with intense volatility.The escalating tensions in Ukraine and Ukraine, where Washington warned a Russian invasion could be imminent anytime, may trigger market movements across the board Investors said. Learn moreBitcoin has "really become the most powerful market for momentum trading and there are several risks that could trigger a 40% drop from the midst of the night," said Ed Moya as the senior analyst of Oanda.However, the volatility of Bitcoin isn't stopping some analysts from trying to gauge the true value of the currency or identify possible price points.Analysts at JPMorgan believe that bitcoin's fair value as $38,000 . This is roughly 15% lower than the current price , based upon its volatile nature in comparison to that of gold, which is another asset which investors typically use to hedge their portfolios against market volatility and inflation.Vanda Research, meanwhile, wrote in a report that most of the bearish bets based on a weaker bitcoin price were made at approximately $47,000 "there is a possibility of a significant short-squeeze when the threshold is crossed, and retail investors are reintroduced to trading in crypto."As for the other side, correlations between the bitcoin and the S&P 500 hit the highest level ever on January 31, according data provided by BofA Global Research, undercutting any argument that people might make to make use of bitcoin as security against market volatility.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Investors will be getting minutes of the Fed's recent session on monetary policy that will be due out on Wednesday. Walmart (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will be among the companies that report resultsas earnings season kicks off.Some investors are steeling themselves to take advantage of the volatility of bitcoin, betting that the longer-term value from blockchain technology its built-in supply limit and the impact on the network its technology produces, will last despite the constant price swings.Jurrien Timmer director of global macro at Fidelity and Fidelity, compared the current speculation in cryptocurrencies to the high volatility tech stocks experienced during the dotcom era over 20 years ago, a boom and bust era that saw only very few companies remaining."Amazon remains in business and Apple is still around and they're stronger than ever and the thinking is that for bitcoin it's going to be much the same" says the expert. "But bitcoin isn't immune from those waves of speculation and sentiment."Bitcoin could reach $100,000 by 2023. Timmer claimed, following his supply/demand modeling.Others think that mature cryptocurrency such as bitcoin and ether are unlikely to produce the spectacular gains they have made since the time of their creation.Instead, they're turning at the universe of brand new alternative coins creating to profit of the wealth pouring into the crypto industry which includes the metaverse as well as NFTs. NFTs accounted for more than the equivalent of $30 billion in venture capital investments last year according to PitchBook?.There are a few altcoins like cosmos, Terra Luna, and Polkadot and Polkadot, which are down about 20.5% (38%), 20.5%, and 25.5 percentages year-todate, respectively, according to coinmarketcap.com.Understanding the risks related to their decentralized nature and financial systems is likely to be one of the most significant challenges for investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely unstable going forward, however, there are significant players on both the institutional side and the retail side that are growing, therefore the interest is growing," said Oanda's Moya.

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