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p>Investors are ready for further exuberance in bitcoin and cryptocurrency as concerns about an overly aggressive Federal Reserve threaten to squelch market appetite for risk in all markets.The extreme volatility usually associated with cryptocurrencies is on full display in recent weeks. Bitcoin is the most popular cryptocurrency, is now up roughly 33% from January. 24. It has been trading at $43,850, rebounding from the plunge that cut its price in half from November's record highest. Its major rival, Ether, has gained around 45% since Jan. 24 and is trading at $3,200 which follows a more than 56 percent plunge from its record-setting $4,868 during November.<img width="301" src="">Even though advocates of cryptocurrencies declared that they were not linked to other assets, bitcoin and its peers were able to make huge gains during the recent two years. They've risen along with stocks as the Fed together with the other major central banks introduced massive amounts of stimulus into the global economy. http://www.docspal.com/viewer?id=- has risen 1,039% since March 2020 and Ethereum has grown by 2,940%. The increases in both cryptocurrencies have been slowed by frequent stomach churning selling.Their recent volatility has occurred in the midst of a wider market selloff that was triggered by investors shifting their portfolios around to account for an ever-increasingly aggressive Fed that is likely to increase rates 7 times in 2018 as it combats rising inflation. The standard S&P 500 index (.SPX) has dropped 5.5 percent since the start of the year, and the tech-driven Nasdaq (.IXIC) also has dropped 9.3%.An edgy central bank tightening cycle going forward will depress more risky assets have made difficult for some traders to maintain their positive outlook on bitcoin as well as other cryptos. This asset class has already been that has been identified as being extremely volatile.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Tensions are rising in Ukraine which is where Washington warned that a Russian invasion could be imminent any minute, could trigger market movements across the board as investors speculated. Learn moreBitcoin is "really become the ultimate investment that is gaining momentum and has 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 trying to determine the fair value of the currency, and identifying potential price points.Analysts at JPMorgan believe that bitcoin's price at around $38,000 , which is 15% lower than its current price - based on its volatile nature in comparison to that for gold, another investment which investors typically use to protect their portfolios from volatility in the economy and inflation.Vanda Research, meanwhile, reported in a recent document that the bulk of bearish bets on a weaker bitcoin price had been placed at approximately $47,000 "there could be a major short squeeze if the threshold is crossed, and retail investors are reintroduced for crypto-trading."The correlations between bitcoin and the S&P500 reached an all-time high in January 31, according the data taken from BofA Global Research, undercutting some of the arguments made by those hoping to use bitcoin as security against market volatility.The next week, investors will receive minutes from the most recent Fed meeting on monetary policy due out Wednesday. Walmart (WMT.N) in addition to chipmaker Nvidia Corp (NVDA.O) will figure among those releasing resultsas earnings season continues.Some investors are steeling themselves to ride out the volatility in bitcoin, assuming that the value from blockchain technology its built in supply limit, and the impact on the network the technology creates will continue to last regardless of the frequent price fluctuations.Jurrien Timmer director of macro-economics at Fidelity explained that the current cryptocurrency speculation to high volatility tech stocks experienced during the dotcom period more than two decades ago. boom-and -bust time period that saw an incredibly small percentage of companies surviving."Amazon continues to exist and Apple continues to exist and the two are bigger than ever. the assumption is that for bitcoin that will be like Apple," explained the man. "But bitcoin isn't immune to these waves of speculation or sentiment."Bitcoin could hit $100,000 by 2023, Timmer has said, in accordance with his supply/demand models.Others believe that mature cryptos like bitcoin and ether will not be able to be able to offer the same impressive gains that they have racked up since their founding.Instead, they're looking towards the vast universe of new alternative coins in development to capitalize of the money pouring into the crypto industry, including the metaverse and NFTs which saw $30,000 worth of venture capital investment last year, according PitchBook?.There are altcoins that include cosmos Terra Luna, and Polkadot which are down 20.5 percent as of 38%, 20.5% and 25.5 percent for the year to date, respectively at the time of coinmarketcap.com.Understanding the risks linked to them and decentralized finance is likely to be one of the major challenges for investors by 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely volatile in the coming years, but there are some significant players on both the institutional and retail side that are still expanding, and so the interest continues to grow," said Oanda's Moya.

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