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p>Investors are waiting for more variations in bitcoin, and other cryptocurrency as concerns about an overly hawkish Federal Reserve threaten to squelch market appetite for risk in all markets.The volatility commonly that is characteristic of cryptocurrency has been visible in recent weeks. Bitcoin , the largest cryptocurrency, has gained nearly 33% as of Jan. 24 and was recently trading at $43,850, bouncing back from drop that cut cost by half from November's record high. The primary competitor, Ethereum, is up by about 40% since Jan. 24, at about $3,200 after a 56 percent drop from the record high of $4,868, which was also recorded in November.The advocates of cryptocurrency have previously asserted that they are not tied to other assets as a result, bitcoin and its peer were able to make huge gains during the past two years. They've been rising and gaining momentum alongside stocks as Fed or other central banks infused extraordinary levels of stimulus into the world economy. Bitcoin has risen 1,039 percent since March 2020, and Ethereum has grown by 2,940%. http://www.docspal.com/viewer?id=- in both of them has been slowed by frequent stomach churning sales.The recent volatility in the market has occurred in the midst of a wider market selling spurred by investors changing their portfolios to account for an even more aggressive Fed, which is now expecting to raise rates 7 times this year in order to fights rising inflation. The index that is the benchmark S&P 500 index (.SPX) is down 5.5 percentage year-to date, while the technologically-oriented Nasdaq (.IXIC) was down by 9.3%. lost 9.3 percent..Fears that a ferocious central bank tightening cycle moving forward could stifle volatile assets has made difficult for traders to maintain their positive view regarding bitcoin and various cryptos and other asset classes, which are already associated with extreme volatility.Tensions are rising in Ukraine which is where Washington warned that a Russian invasion could happen at any moment, could create market turmoil Investors said. learn moreBitcoin could "really become the ultimate investment that is gaining momentum and has so many risks that can cause a 40% fall that appears out of thin air," said Ed Moya, senior analyst at Oanda.Bitcoin's volatility hasn't stopped some analysts from attempting to estimate the true value of the currency and identifying potential price points.Analysts at JPMorgan believe that bitcoin's fair value at about $38,000 , or 15% below its current price based on its variability in comparison with the volatility of gold. Gold is an asset used by investors to protect their portfolios from inflation and economic uncertainty.Vanda Research, meanwhile, wrote in a report that the bulk of bearish bets based on a weaker bitcoin were placed around $47,000, and "there could be a huge short-squeeze should the threshold is met and retail investors are reintroduced to crypto-trading."<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 rose to an all-time high on January 31 according to data of BofA Global Research, undercutting the argument of those who hope for the use of cryptocurrency as the hedge against market volatility.Investors next week are expecting minutes of the Fed's recent gathering on monetary policies, which will come out on Wednesday. Walmart (WMT.N) and chipmaker Nvidia Corp (NVDA.O) will be among the companies to announce numbers as corporate earnings season continues.<img width="462" src="">Some investors are making plans to ride out the volatility of bitcoin, assuming that the long-term value proposition Blockchain technology the built-in supply limit as well as the network effect the technology creates will continue to last regardless of the frequent price fluctuations.Jurrien Timmer, director of macro-economics at Fidelity and Fidelity, compared the current cryptocurrency market to the turbulence tech stocks experienced during the dot-com bubble more than two decades ago. It was a boom-and-bust period which saw an incredibly small percentage of firms left standing."Amazon is still going strong and Apple is still in existence and they're both bigger than ever. the thinking is that for bitcoin it'll be exactly identical," He said. "But bitcoin isn't immune from these waves of speculation or sentiment."Bitcoin could reach $100,000 as soon as 2023. Timmer stated, as per his supply/demand calculations.Others believe that mature cryptocurrencies such as bitcoin and ether are unlikely for the kind of stunning gains they have achieved since the time of their creation.Instead, they are looking to the vast world of alternative coins creating to profit of the cash flowing into the crypto-currency space such as the metaverse and NFTs, which received $3 billion in venture capital investments in 2013, according to PitchBook?.There are a few altcoins like cosmos, Terra Luna, and Polkadot that are down 20.5% in the past three months, with 38% and 25.5 percentages year-todate, respectively from coinmarketcap.com.Knowing the risks associated with them and decentralized financing is going to be one of the biggest challenges facing investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely volatile , but there are some significant players on both the institutional side and the retail side that are expanding, which means that the demand is still growing," said Oanda's Moya.

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