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p>Investors are anticipating further gyrations in bitcoin and other cryptocurrency as concerns about the direction of the Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The volatility that is typically associated with cryptocurrency has been displayed during the last few weeks. Bitcoin is the most popular cryptocurrency, has gained approximately 33% since Jan. 24 and recently traded at $43,850. It's recovering from dropping that cut its cost by half from November's record-setting high. Its primary rival, Ether, is climbing around 45% since Jan. 24 to around $3,200, following a nearly 56 percent drop from its record-setting $4,868 also in November.<img width="493" src="">While proponents of cryptocurrencies once stated that they have no correlation to other assets the bitcoin market and its competitors gained hugely over the past two years. They've been rising together with stocks, as the Fed and other central banking institutions pumped extraordinary levels of stimulus into the global economy. Bitcoin has risen 1,039 percent since March 2019, and Ether has gained 2,940%, though the increase in both of them has stopped by several stomach churning selling.Their recent volatility has come amid a broader downturn in the market, triggered by people making adjustments to their portfolios to account for a more aggressive Fed, which is now scheduled to raise rates 7 times over the course of this year, as it combats rising inflation. The index that is the benchmark S&P 500 index (.SPX) is down 5.5 percent year-to-date, whereas the tech-driven Nasdaq (.IXIC) has dropped 9.3%.A fear that an aggressive inflationary cycle by central banks going into the future will harm risksy assets has made difficult for traders to maintain their optimistic outlook regarding bitcoin and other digital currencies. This asset class has already been recognized as having a high degree of volatility.An increase in tensions in Ukraine, where Washington warned that a Russian invasion could be imminent at any time, may spur market changes across the globe Investors have said. Find out moreBitcoin can "really become the most powerful movement trade," and there are lots of risk that could lead to a 40% drop that appears out of thin air," said Ed Moya who is a senior analyst at Oanda.The volatility of Bitcoin doesn't stop some experts from trying to establish the fair value of the currency, or identify possible price points.Analysts at JPMorgan estimate bitcoin's current worth at $38,000 which is around 15% less than its previous cost based on the fluctuations in comparison to the volatility for gold, another investment people often invest in to protect their portfolios from the effects of inflation and economic uncertainty.Vanda Research, meanwhile, stated in a recent report that most of the negative bets on the weaker bitcoin value were put in at approximately $47,000 "there could be an enormous short squeeze if that threshold is reached, and retail investors are reintroduced to crypto-trading."<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>In addition, the correlations between bitcoin and the S&P 500 hit an all-time high on Jan 31, according the data obtained from BofA Global Research, undercutting the argument for those who want for the use of cryptocurrency as an insurance against market volatility.Investors are expected next week to receive minutes from the Fed's most recent gathering on monetary policies, which will come out on Wednesday. Walmart (WMT.N) as well as chipmaker Nvidia Corp (NVDA.O) will figure among those releasing resultsas the corporate earnings season gets underway.Some investors are ready to weather the volatility in bitcoin, hoping on the long-term viability associated with blockchain technology the built in supply limit, and the effect on networks it brings, will be able to endure despite frequent price swings.Jurrien Timmer director of macro-economics at Fidelity The Fidelity director compared the present cryptocurrency speculation to turbulence tech stocks experienced during the dotcom period more than 20 years ago, a boom and bust era that saw only an incredibly small percentage of companies remain."Amazon remains around, as is Apple is around as well and the two are bigger than ever. the idea is that with bitcoin it'll be the same," he said. "But bitcoin isn' http://bvkrongbong.com/Default.aspx?tabid=120&ch=424957 to the waves of speculation and sentiment."Bitcoin could hit the $100,000 mark by 2023. Timmer told me, according to his supply/demand model.Other experts believe that mature cryptocurrency, such as bitcoin and ether aren't likely to provide the impressive gains that they have racked up since their creation.Instead, they're looking to the universe of new alternative coins in development to capitalize of the wealth pouring into the space of crypto which includes the metaverse as well as NFTs, which received the equivalent of $30 billion in venture capital investments in the last year, according to PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot and Polkadot, which are down about 20.5 percent three times, and 25.5 percent year-to-date, respectively, as per coinmarketcap.com.Understanding the risks related to the financial sector and decentralized banking is likely to be one of the most important challenges 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 both on the institutional and retail side that are increasing, so interest continues to grow," said Oanda's Moya.

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