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p>Investors are ready for further gyrations in bitcoin and other cryptocurrencies, as worries over the direction of the Federal Reserve threaten to squelch market risk appetite.The volatility that is typically that is characteristic of cryptocurrency has been on full display during the last few weeks. Bitcoin is the largest cryptocurrency, is up by around 33% since Jan. 24 and recently traded at $43,850. It has recovered from drop that cut value in half from November's record price. https://controlc.com/259cd3d8 , Ether, has gained around 45% since Jan. 24 and is trading at $3,200 which follows a more than 56 percent decline from its record-setting $4,868 and also in November.Although those who advocated for cryptocurrencies previously boasted of their lack of a correlation to other assets bitcoin and its ilk had huge gains over the recent two years, gaining along with stocks while the Fed along with other central banking institutions pumped enormous amounts of stimulus into the global economy. Bitcoin has risen 1,039 percent from March 2020. the price of ether has increased by 2,940%, though the rallies in both cryptocurrencies have been marred by numerous stomach churning selling.The recent volatility in the market has come amid a broader market selloff that was triggered by investors making adjustments to their portfolios to account for a more aggressive Fed, which is now expected to raise rates in the range of seven times over the course of this year, as it battles rising inflation. The benchmark S&P 500 index (.SPX) is down 5.5 percent over the past year, and the high-tech Nasdaq (.IXIC) was down by 9.3%. dropped 9.3%.Worries that an aggressive central bank tightening cycle moving forward will depress more risky assets have made difficult for traders to keep their optimistic view on bitcoin and the other cryptos as an asset class recognized as having a high degree of volatility.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The escalating tensions in Ukraine in Ukraine, where Washington warned a Russian invasion could take place anytime, may lead to market shifts in the future Investors said. Find out moreBitcoin does "really become the most powerful the market that has momentum, and there's lots of risk that could trigger a 40% drop that appears out of thin air," said Ed Moya the senior analyst at Oanda.The volatility of Bitcoin hasn't stopped analysts from looking to determine what the price of Bitcoin is or to identify potentially significant price points.Analysts at JPMorgan estimate bitcoin's current fair value as $38,000 , or 15% less than its present price based upon its fluctuations in comparison to the volatility of gold, an alternative asset investors often use to hedge their portfolios against volatility in the economy and inflation.Vanda Research, meanwhile, released a statement that most of the bets that were speculative on a lower bitcoin price were placed approximately $47,000 "there is a possibility of a significant short-squeeze when the threshold is crossed and retail investors return to trading crypto."<img width="300" src="https://blog.toroinvestimentos.com.br/hubfs/Toro2019/imagens%20post%20ctvm/Bitcoin-e-seguro.jpg#keepProtocol">As for the other side, correlations between the bitcoin and the S&P500 reached an all time high on Jan 31st, according to research obtained from BofA Global Research, undercutting the argument for those who want to use bitcoin as security against market volatility.Investors next week can look forward to minutes from the Fed's most recent meeting on monetary policy, which is due to be released on Wednesday. Walmart (WMT.N) as well as chipmaker Nvidia Corp (NVDA.O) will be among the companies that will release results, as corporate earnings season gets underway.Some investors are steeling themselves to take advantage of the volatility of bitcoin, believing on the long-term viability Blockchain technology its built-in supply limit as well as the network effect it generates, will last despite the frequent price fluctuations.Jurrien Timmer director of macro-economics at Fidelity explained that the current Bitcoin speculation to fluctuations in tech stocks seen during the dotcom boom nearly two decades ago. This was a boom-and-bust time that saw a comparatively small group of companies remaining."Amazon remains around, as is Apple is still around and they're larger than ever before and the assumption is that for bitcoin that will be like Apple," says the expert. "But bitcoin isn't immune from those waves of speculation and sentiment."Bitcoin could reach $100 million by 2023, Timmer told me, basing his supply/demand models.Others believe mature cryptocurrencies like bitcoin and ether will not be able to make the eye-watering gains they have notched since their inception.Instead, they're turning to the wide world of, alternative coins that are creating to profit from the capital pouring into the cryptocurrency space, including the metaverse and NFTs, which saw more than $30 billion of venture capital investments this year, as per PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot, which are down around 20.5 percent three times, and 25.5 percent year-to-date, respectively, as per coinmarketcap.com.Knowing the risks associated with the decentralized financial system and its risks is going to be one of principal challenges facing investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very volatile for the foreseeable future, but there are some significant players on both the institutional side and the retail side that are growing, so the interest is still growing," said Oanda's Moya.

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