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p>Investors are ready for further swings in bitcoin as well as other digital currencies, as concerns about an uncompromising Federal Reserve threaten to squelch risk appetite across markets.The volatility commonly associated with cryptocurrency is all over the news during the last few weeks. https://cutt.ly/0PwOX0t , the largest cryptocurrency, is up by around 33% over the course of Jan. 24, and lastly traded at $43,850. This is a rebound from a tumble that cut its price by half from its record-setting peak. Its major rival, ether , has risen by around 40% since Jan. 24 when it was trading around $3200 which follows a more than 56 percent plunge from its record high of $4,868, at the time of the November.The advocates of cryptocurrency have previously declared that they were not linked to other assets bitcoin and its peers were able to make huge gains during the two years that followed, rising like stocks when the Fed along with other central banks have pumped enormous amounts of stimulus into the global economy. Bitcoin has risen 1,039 percent since March of 2020 and the price of ether has increased by 2940%, however the gains in both have seen a flurry of stomach-churning sales.The recent volatility in the market is part of a larger market selloff triggered by investors revising their portfolios so that they account for an ever-increasingly aggressive Fed which is predicted to raise rates nearly seven times over the course of this year, as it battles rising inflation. The index that is the benchmark S&P 500 index (.SPX) has dropped 5.5 percent since the start of the year, and the high-tech Nasdaq (.IXIC) had lost 9.3 percent..A fear that an aggressive loosening and tightening cycles by central banks going forward will depress high-risk assets has made it difficult for traders to maintain their bullish outlook on bitcoin and other cryptos this asset class is already classified as having high volatility.<img width="434" src=""><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>An increase in tensions in Ukraine the country where Washington warned a Russian invasion could be imminent anytime, may lead to market shifts in the future Investors have said. Find out moreBitcoin has "really become the most powerful the market that has momentum, and there's several risks that could cause a 40% plunge completely out of the blue," said Ed Moya the senior analyst at Oanda.Some analysts from seeking to understand the value of the currency or even identify important price points.Analysts at JPMorgan estimate bitcoin's current price at around $38,000 which is around 15% lower than its current price based upon its volatile nature in comparison to that of gold. Gold is a second asset many investors use to hedge their portfolios against fluctuations in the economy and inflation.Vanda Research, meanwhile, has stated in a note that the majority of bets that were speculative on a lower bitcoin price were taken at around $47,000, and "there could be a large short squeeze if the threshold is crossed and retail investors return back to crypto-trading."Additionally, the correlations between bitcoin and the S&P 500 reached an all-time high in January 31 according to data from BofA Global Research, undercutting the claims of those who plan that they can use the cryptocurrency to an insurance against market volatility.Investors next week are expecting minutes from the Federal Reserve's most recent session on monetary policy that will be due out on Wednesday. Walmart (WMT.N) in addition to chip maker Nvidia Corp (NVDA.O) will be among the companies that report numbers as corporate earnings season kicks off.A few investors are getting ready to ride out the volatility in bitcoin, hoping that the longer-term value from blockchain technology its built in supply limit, and the effect that it creates, will last regardless of the numerous price swings.Jurrien Timmer, director of global macro at Fidelity has compared the current Bitcoin speculation to turmoil experienced by tech stocks in the dotcom era over 20 years ago, a boom and bust period that resulted in relatively few companies remaining."Amazon is still around , and Apple remains around and they're bigger than they've ever been and the thinking is that for bitcoin, it'll do similar," says the expert. "But bitcoin isn' https://atavi.com/share/vb09h5z1tr3v from those waves of speculation and sentiment."Bitcoin could reach $100,000 by 2023. Timmer is claiming, according to his supply/demand model.Others think that mature cryptocurrency such as bitcoin and ether aren't likely to deliver the kind of breathtaking gains they have experienced since their founding.Instead, they are turning to the wide world of, alternative coins that are developing to take advantage of the money flowing into the cryptocurrency space which includes the metaverse as well as NFTs. NFTs accounted for more than an investment of 30 billion from venture capital investment last year, according PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot and are trading at around 20.5% in the past three months, with 38% and 25.5 percent over the past year, respectively as per coinmarketcap.com.The understanding of the risks that come with the decentralized financial system and its risks is likely to be among the most difficult issues for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely volatile going forward, but there are significant players on the institutional side and the retail side that are still growing, so the interest is growing," said Oanda's Moya.

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