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p>Investors are anticipating more flashes of bitcoin and other cryptocurrencies, while worries about the aggressiveness of the Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The usual volatility associated with cryptocurrencies has been visible in recent weeks. Bitcoin is the most popular cryptocurrency, has risen by about 33% from Jan. 24 and was recently trading at $43,850, bouncing back from dropping that cut its price by half since November's record price. The major competitor, ether , is up 45percent since January. 24 to around $3,200, following a nearly 56 percent decline from its record high of $4,868, and also in November.The advocates of cryptocurrency have previously exaggerated their lack of connection to other assets however, bitcoin as well as its rivals saw huge gains over the last two years. They have risen together with stocks, as the Fed and other central bankers pumped huge amounts of stimulus into the world economy. https://cutt.ly/rPrmSBz is up 1,039 percent since March 2019, and Ethereum has surged by 2,940%, though the rising prices of both cryptocurrencies have stopped by several stomach churning selloffs.The recent volatility in the market is in line with a larger market selloff triggered by investors revising their portfolios so that they account for a more aggressive Fed, which is now likely to increase rates 7 times this year to combats the rising cost of living. The benchmark S&P 500 index (.SPX) is down 5.5 percent over the past year, and the tech-heavy Nasdaq (.IXIC) have dropped 9.3 percent..Worries that an aggressive pace of tightening by the central bank moving forward will hurt the risky assets have made it difficult for some traders to maintain their bullish view regarding bitcoin and other digital currencies which is an asset class that has been identified with intense volatility.Rising tensions in Ukraine the country where Washington warned a Russian invasion could be imminent anytime, may create market turmoil Investors said. Learn moreBitcoin has "really become the most powerful trading platform and there are plenty of risks that could cause a 40% fall suddenly," said Ed Moya of Oanda, a senior analyst. Oanda.The volatility of Bitcoin doesn't stop some analysts from seeking to understand the true value of the currency or pinpoint potential prices.Analysts at JPMorgan believe that bitcoin's fair value as $38,000 which is around 15% below its recent price - based on its variability in comparison with the volatility of gold, an alternative asset which investors typically use to protect their portfolios from risk of economic instability and inflation.Vanda Research, meanwhile, published a note that most of the bets that were speculative on a lower bitcoin price had been placed at around $47,000 "there may be a large short-squeeze , if the threshold is met and retail investors return to trading on cryptocurrency."The correlations between bitcoin as well as the S&P 500 rose to an all-time-high on January 31 according to data of BofA Global Research, undercutting any argument that people might make to utilize bitcoin as security against market volatility.Investors in the coming week can expect minutes from the Federal Reserve's most recent session on monetary policy that will be due to be released on Wednesday. Walmart (WMT.N) as well as chipmaker Nvidia Corp (NVDA.O) will figure among those releasing resultsas the corporate earnings season kicks off.Some investors are making plans to take advantage of the volatility in bitcoin, hoping on the long-term viability of blockchain technology, the built in supply limit, and the network effect it creates, will last even in the face of frequent price fluctuations.Jurrien Timmer, director of macro-economics at Fidelity said that the current speculation on cryptocurrency to volatile tech stocks that were experiencing during the dot-com era more than two decades ago, a boom-and-bust period which saw the smallest number of companies left standing."Amazon is still active and Apple is still in existence and they're bigger than they've ever been and they're hoping that for bitcoin it will be the same," The man said. "But bitcoin isn't immune from these waves of speculation or sentiment."Bitcoin could reach $100,000 as soon as 2023. Timmer told me, as per his supply/demand calculations.Some believe that mature cryptocurrency like bitcoin and ether will not be able to achieve the eye-watering gains they have notched since their beginning.Instead, they are turning to the wide world of alternative coins being made to make the most of the investment flowing into the crypto sector, including the metaverse and NFTs which saw the equivalent of $30 billion in venture capital investment in the last year, according to PitchBook?.<img width="472" src="">There are altcoins that include cosmos Terra Luna, and Polkadot that are down 20.5 percent 38%, 20.5% and 25.5 percent, year-to date, respectively, at the time of coinmarketcap.com.Understanding the risks related to these and decentralized finance is going to be one the most important challenges for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very uncertain in the future, yet there are significant players on both the institutional side and the retail side that are growing, meaning that interest is still growing," said Oanda's Moya.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>

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