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p>Investors are bracing for more volatility in bitcoin and other cryptocurrencies, while worries about an overly aggressive Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The volatility normally associated with cryptocurrency was prominent over the past few weeks. Bitcoin is the most popular cryptocurrency, has gained approximately 33% since Jan. 24. It has been trading at $43,850. This is a rebound from it's plunge, which cut its value in half from November's record peak. Its major rival, ether , is up 45% since Jan. 24 with a price of around $3200 as of Jan. 24, following a 56 percent plunge from its record-setting $4,868 also in November.While advocates of cryptocurrency once stated that they have no correlation to other assets bitcoin and its ilk had huge gains over the period of two years. They soared and gaining momentum alongside stocks as Fed together with the other major central banks unleashed huge amounts of stimulus into the global economy. Bitcoin has increased by 1,039 percentage since March 2020. Ethereum has seen a rise of 2,940%, but the rises of both currencies have been slowed by frequent stomach churning sales.The recent volatility in the market has been accompanied by a wider market selloff that was triggered by investors shifting their portfolios around to account for a more aggressive Fed which is expecting to raise rates in the range of seven times over the course of this year, as it combats a rising rate of inflation. The index that is the benchmark S&P 500 index (.SPX) is down 5.5 percent since the start of the year, and the technology-focused Nasdaq (.IXIC) has dropped 9.3 percent..The fear that an aggressive central bank tightening cycle moving forward could stifle risky assets has made it difficult for some traders to maintain their optimistic outlook regarding bitcoin and other digital currencies and other asset classes, which are already known for its extreme volatility.Intensifying tensions in Ukraine that are escalating in Ukraine, where Washington warned a Russian attack could start any time, could trigger market movements across the board analysts said. learn more<img width="420" src="https://vignette.wikia.nocookie.net/shipping/images/4/49/Bitcoin_-_DRTA_EP3.png/revision/latest?cb=20200824164044">Bitcoin has "really become the ultimate investment that is gaining momentum and has so many risk factors that could cause a 40% plunge suddenly," said Ed Moya Oanda's senior analyst. Oanda.Its volatility in Bitcoin hasn't stopped experts from trying to establish the fair value of the currency, or pinpoint potential prices.Analysts at JPMorgan estimate bitcoin's current fair value at about $38,000 . This is roughly 15% less than its current cost based on the high volatility in comparison to that of gold, a different asset used by investors to protect their portfolios from fluctuations in the economy and inflation.Vanda Research, meanwhile, has stated in a note that the bulk of betting on bearishness on a declining bitcoin price had been placed at around $47,000, and "there could be a major short-squeeze if this threshold is exceeded, and retail investors are reintroduced to trading with crypto."Meanwhile, correlations between bitcoin and the S&P 500 hit the all-time highest on Jan 31st, according to research of BofA Global Research, undercutting any argument that people might make for the use of cryptocurrency as an insurance against market volatility.Investors next week are expecting minutes from the Federal Reserve's most recent meeting on monetary policy, which is due out on Wednesday. https://cutt.ly/jPwXfAP (WMT.N) in addition to chip maker Nvidia Corp (NVDA.O) will figure among those releasing resultsas earnings season rolls on.A few investors are getting ready to take on the volatility of bitcoin, believing that the longer-term value Blockchain technology the built in supply limit, and the effects it creates, will last despite the frequent price changes.Jurrien Timmer director of macro-economics at Fidelity, likened the current speculation in cryptocurrencies to the volatility experienced by tech stocks during the dot-com boom more than two decades ago. boom-and -bust time period that saw an incredibly small percentage of companies surviving."Amazon is still around and Apple is still around , and they're more powerful than ever, and it's believed that for bitcoin that will be exact," Mr. Smith said. "But bitcoin isn't immune from those waves of speculation and sentiment."Bitcoin could reach $100 million by 2023, Timmer claimed, according to his supply/demand model.Others believe mature cryptocurrencies like Bitcoin and Ethereum are not likely for the kind of amazing gains they have seen since their beginning.Instead, they're turning to the universe of new alternative currencies that are being made to make the most of the wealth pouring into the crypto market which includes the metaverse as well as NFTs, which accounted for more than $30 billion of venture capital investment last year, according to PitchBook?.A few altcoins are cosmos Terra Luna, and Polkadot in the range of 20.5% three times, and 25.5 percent over the past year, respectively on the basis of coinmarketcap.com.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Understanding the risks connected to them and decentralized finance is likely to be one of principal challenges facing investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely volatile , but there are significant players on both the institutional side and the retail side that are growing, therefore the interest is still growing," said Oanda's Moya.

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