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p>Investors are preparing for further swings in bitcoin as well as other cryptocurrency markets, as fears about the aggressiveness of the Federal Reserve threaten to squelch the appetite for risk across markets.The volatility traditionally associated with cryptocurrencies is at full display during the last few weeks. Bitcoin is the largest cryptocurrency, has risen by 33% in the past month since Jan. 24. It was last traded at $43,850, rebounding from an ebb that cut its value by half from the record-setting highest. The major competitor, ether , is up 40% since Jan. 24 at around $3,200 in the wake of a near 56% nosedive from its record-setting $4,868 as of November.The advocates of cryptocurrency have previously declared that they were not linked to other assets bitcoin and other cryptocurrencies had huge gains over the past two years. They've been rising in tandem with stocks as Fed along with other central banks introduced enormous amounts of stimulus into the global economy. Bitcoin is up 1,039 percent since March 2020, and ether has risen 2,940%, but the gains in both have been slowed by frequent stomach churning selloffs.Their recent volatility comes amid a wider market selloff that was triggered by investors revising their portfolios so that they account for an ever-increasingly aggressive Fed which is anticipating to raise rates by nearly seven times over the course of this year, as it battles rising inflation. The standard S&P 500 index (.SPX) has dropped 5.5 percent so far this year, while the tech-heavy Nasdaq (.IXIC) also has lost 9.3%.The fear that an aggressive government tightening of the pace moving forward will hurt these assets has made it difficult for traders to keep their optimistic outlook on bitcoin and other cryptocurrency this asset class is already identified with intense volatility.Tensions are rising in Ukraine, where Washington warned a Russian invasion could commence at any time, may generate market-wide volatility Investors warned. Learn moreBitcoin could "really become the ultimate trading platform and there are lots of risk that could cause a 40% fall from the midst of the night," said Ed Moya who is a senior analyst at Oanda.Its volatility in Bitcoin hasn't stopped analysts from seeking to understand the fair value of the currency, or point out potential price levels.Analysts at JPMorgan believe that bitcoin's actual value to be about $38,000 which is around 15% less than its current price , based upon its volatility in comparison with that of gold, an alternative asset which investors typically use to hedge their portfolios against risk of economic instability and inflation.Vanda Research, meanwhile, has stated in a note that the bulk of betting on bearishness on a declining bitcoin price were placed at about $47,000 "there might be a massive short-squeeze if this threshold is reached, and retail investors return to trading on cryptocurrency."<img width="449" src=""><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>As for the other side, correlations between the bitcoin and the S&P500 reached an all-time high on January 31, according the data taken from BofA Global Research, undercutting the argument of those who hope to use bitcoin as an insurance against market volatility.The next week, investors will receive minutes from the last Fed monetary policy meeting, due out Wednesday. Walmart (WMT.N) as well as chipmaker Nvidia Corp (NVDA.O) will be among the companies that will release numbers as corporate earnings season kicks off.Some investors are steeling themselves to weather the volatility in bitcoin, assuming on the long-term viability Blockchain technology the built in supply limit, and the effect on networks its technology produces, will last regardless of the numerous price swings.Jurrien Timmer director of global macro at Fidelity and Fidelity, compared the current speculation about cryptocurrency to the volatile tech stocks that were experiencing during the dotcom boom nearly two decades ago. boom-and bust period in which there was very few businesses left standing."Amazon is still active and Apple continues to exist and they're bigger than ever . the idea is that with bitcoin, it'll be just the same," explained the man. "But https://controlc.com/e191419f 's not immune to those waves of speculation and sentiment."Bitcoin could hit $100,000 by 2023. Timmer told me, in accordance with his supply/demand models.Other analysts believe that mature cryptocurrencies like bitcoin and ether have a low chance to provide the incredible gains that they have had since the time of their creation.Instead, they are looking to the vast world of alternative coins creating to profit of the wealth flowing into the cryptocurrency space such as the metaverse and NFTs which saw $3 billion in venture capital investments in 2013, according to PitchBook?.Certain altcoins include cosmos Terra Luna, and Polkadot that are all down by 20.5% 3, 38 and 25.5 percentage year-to-date according to coinmarketcap.com.Understanding the risks connected to decentralized finance and the risk of them likely to be one of the biggest challenges facing investors in 2022. Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain volatile for the foreseeable future, but there are significant players on both the institutional side and the retail side that are still expanding, and so the interest is still growing," said Oanda's Moya.

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