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p>Investors are anticipating further flashes of bitcoin and other cryptocurrencies, while worries about the hawkishness of the Federal Reserve threaten to squelch risks across markets.The volatility traditionally associated with cryptocurrency is prominent over the past few weeks. Bitcoin , the largest cryptocurrency, is climbing by around 33% over the course of Jan. 24 and is currently trading at $43,850. It's rebounding from falling to a point that cut the value by half from the record peak. The major competitor, ether , is up around 40% since Jan. 24 with a price of around $3200 as of Jan. 24, following a 56 percent decline from its record high of $4,868, at the time of the November.When advocates of cryptocurrencies boasted of their lack of a correlation to other assets however, bitcoin as well as its rivals witnessed huge gains over past two years, rising along with stocks while the Fed and other central banks infused incredible amounts of stimulus into the global economy. Bitcoin is up 1,039% since March 2020 and Ethereum has seen a rise of 2940%, however the growth in both cryptos have been cut short by a variety of stomach churning selling.Their recent volatility has come amid a broader market decline triggered by investors revising their portfolios so that they account for a more aggressive Fed which is expecting to raise rates nearly seven times over the course of this year, as it combats a rising rate of inflation. The benchmark S&P 500 index (.SPX) has dropped 5.5% year-to-date, while the technology-focused Nasdaq (.IXIC) have dropped 9.3 percent..Fears that a ferocious inflationary cycle by central banks going forward could stifle more risky assets have made difficult for some traders to maintain their bullish outlook for bitcoin and other cryptos and other asset classes, which are already known for its extreme volatility.A rise in tensions within Ukraine which is where Washington warned a Russian invasion could happen any day, could also lead to market shifts in the future Investors have said. learn moreBitcoin has "really become the ultimate trend trade, and there are numerous risks that could lead to a 40% drop seemingly out of thin air," said Ed Moya Senior Analyst at Oanda.The volatility of Bitcoin's currency hasn't stopped analysts from attempting to estimate the value of the currency or pinpoint potential price points.Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 , which is about 15% lower than its most recent price , based upon its fluctuation in comparison to that of gold. Gold is an asset that investors frequently use to protect their portfolios from market volatility and inflation.<img width="439" src="">Vanda Research, meanwhile, said in a recent note that the bulk of bets that were speculative on a lower bitcoin price were taken at around $47,000 "there could be a large short squeeze if that threshold is crossed, and retail investors return to crypto-trading."In addition, the correlations between bitcoin and the S&P500 hit an all-time high in January 31, according data of BofA Global Research, undercutting the claims of those who plan to use the cryptocurrency as an insurance against market volatility.Investors can look forward to 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 will release results, as corporate earnings season continues.Some investors are ready to ride out the volatility in bitcoin, believing that the potential long-term investment from blockchain technology the built in supply limit, and the impact it has created, will endure despite the frequent price changes.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Jurrien Timmer, director of macro-economics at Fidelity The Fidelity director compared the present cryptocurrency speculation to high volatility tech stocks experienced during the dotcom period more than 20 years ago, a boom-and bust period in which there was the most minuscule number of companies left standing."Amazon is still active and Apple is around as well and they're more powerful than ever, and the idea is that with bitcoin, it will be similar," Mr. Smith said. "But bitcoin isn't immune from these waves of speculation or sentiment."Bitcoin could reach $100 million by 2023. Timmer told me, Based on his supply-demand models.Others are of the opinion that mature currencies like Bitcoin and Ether are unlikely to be able to offer the same incredible gains that they have had since their beginning.Instead, they are looking to the world of emerging, alternative coins that are in development to capitalize of the wealth flowing into the crypto market which includes the metaverse as well as NFTs. https://anotepad.com/notes/2g42qxmn saw 30 billion dollars worth of venture capital investments this year, as per PitchBook?.Some altcoins include cosmos Terra Luna, and Polkadot in the range of 20.5% as of 38%, 20.5% and 25.5 percent over the past year, respectively according to coinmarketcap.com.The understanding of the risks that come with their decentralized nature and financial systems is going to be one of the main challenges for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain volatile in the coming years, but there are significant players on the institutional and retail side that are still growing, therefore the interest is still growing," said Oanda's Moya.

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