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p>Investors are ready for further swings in bitcoin as well as other cryptocurrency as concerns about the hawkishness of the Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The typical volatility associated with cryptocurrencies is prominent during the last few weeks. Bitcoin , the largest cryptocurrency, is up around 33% over the course of Jan. 24 and has recently traded at $43,850. The price has risen from drop that cut value by half from the record high. The primary competitor, ether , is up around 45percent from Jan. 24 to around $3,200 as of Jan. 24, following a 56 percent drop from the record high of $4,868, the same month in November.While advocates of cryptocurrency once denied their correlation to other assets however, bitcoin as well as its rivals have seen huge gains in the last two years, rallying together with stocks, as the Fed along with other central bankers pumped massive amounts of stimulus into the world economy. Bitcoin is up 1,039 percent from March 2020. Ethereum has increased by 2940%, however the surges in both cryptocurrency have been slowed by a series of stomach-churning sales.The recent volatility in the market has been accompanied by a wider market selloff driven by investors making adjustments to their portfolios to account for an aggressive Fed that is expected to raise rates nearly seven times this year to battles rising inflation. The benchmark S&P 500 index (.SPX) is down 5.5 percent so far this year, while the tech-driven Nasdaq (.IXIC) dropped 9.3%. lost 9.3%.Concerns that an aggressive central bank tightening cycle moving forward will hurt high-risk assets has made it difficult for traders to maintain their bullish outlook regarding bitcoin and other digital currencies as an asset class associated with extreme volatility.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Rising tensions in Ukraine which is where Washington warned a Russian invasion could be imminent anytime soon, can trigger market movements across the board as investors speculated. Read moreBitcoin does "really become the most powerful investment that is gaining momentum and has numerous risks that could cause a 40% fall suddenly," said Ed Moya an analyst at Oanda.There are a few analysts from trying to gauge the value of the currency or point out potential price points.Analysts at JPMorgan estimate bitcoin's current fair value as $38,000 . That's about 15% below its recent cost based on the volatile nature in comparison to that of gold, a different asset many investors use to protect their portfolios from price fluctuations and economic uncertainty.<img width="486" src="">Vanda Research, meanwhile, reported in a recent document that the majority of negative bets on the weaker bitcoin price had been placed at around $47,000, and "there might be a massive short-squeeze if the aforementioned threshold is reached and retail investors are reintroduced to trading in crypto."While bitcoin's correlations with and the S&P 500 reached the all-time highest on Jan 31st, according to research obtained from BofA Global Research, undercutting some of the arguments made by those hoping to make use of bitcoin as security against market volatility.Investors are expected next week to receive minutes from the most recent Fed meeting on monetary policy to be sent out on Wednesday. Walmart (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will be among the companies reporting resultsas the corporate earnings season continues.Some investors are planning to take advantage of the volatility of bitcoin, believing that the longer-term value from blockchain technology its built-in supply limit and the network effects it creates, will continue despite the frequent price changes.Jurrien Timmer director of global macro at Fidelity said that the current crypto market's volatility to the high volatility tech stocks experienced during the dotcom boom nearly two decades ago. http://cqms.skku.edu/b/lecture/814251 was a boom-and -bust time period that saw just a handful of firms left standing."Amazon remains around, as is Apple is also around, and they're bigger than ever and the idea is that with bitcoin that will be identical," Mr. Smith said. "But it's not immune to these waves of speculation or sentiment."Bitcoin could reach $100,000 as soon as 2023, Timmer is claiming, based on his supply/demand models.Other experts believe that mature cryptocurrency, such as the bitcoin and ether won't be able for the kind of incredible gains that they have had since the time of their creation.Instead, they're looking to the wide world of, alternative coins that are developing to take advantage of the wealth pouring into the crypto industry such as the metaverse and NFTs. These coins saw $30 billion worth of venture capital investment in the last year, according to PitchBook?.The most popular altcoins are cosmos Terra Luna, and Polkadot and Polkadot, which are down about 20.5 percent as of 38%, 20.5% and 25.5 percent over the past year, respectively from coinmarketcap.com.The understanding of the risks that come with their decentralized nature and financial systems is going to be one of principal challenges facing investors by 2022, says Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely volatile for the foreseeable future, but there are significant players on both the institutional and retail side that are growing, therefore the interest is still growing," said Oanda's Moya.

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