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p>Investors are preparing for further flashes of bitcoin and other cryptocurrencies, amid concerns that an aggressive Federal Reserve threaten to squelch risks across markets.The usual volatility in cryptocurrencies has been fully displayed during the last few weeks. Bitcoin is the largest cryptocurrency, has gained around 33% since Jan. 24, and lastly traded at $43,850. It's rebounding from an inflection point that cut its price in half from November's record high. The major competitor, ether , is up 40% since Jan. 24 and is trading at $3,200 with a 58% nosedive from its record high of $4,868, and also in November.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>While proponents of cryptocurrencies once touted their lack of correlation to other assets, bitcoin and its peers had huge gains over the past two years, rising in tandem with stocks as Fed as well as other central banks have pumped unimaginable amounts of stimulus to the global economy. http://www.drugoffice.gov.hk/gb/unigb/anotepad.com/notes/swt4ybbg is up 1,039 percent since March 2020, and Ether has gained 2,940%, though the increase in both of them has seen a flurry of stomach-churning selloffs.The recent volatility in the market has occurred amid a broad market selloff that was triggered by investors who are recalibrating their portfolios in preparation for an ever-increasingly aggressive Fed that is scheduled to raise rates more than seven times this year in order to fights rising inflation. The index that is the benchmark S&P 500 index (.SPX) has dropped 5.5 percent from the beginning of the year, while the tech-heavy Nasdaq (.IXIC) has lost 9.3 percent..An edgy inflationary cycle by central banks moving forward will hamstring risksy assets has made difficult for traders to maintain their positive view regarding bitcoin and various cryptos and other asset classes, which are already recognized as having a high degree of volatility.A rise in tensions within Ukraine that are escalating in Ukraine, where Washington warned a Russian invasion could occur at any time, may trigger market movements across the board Investors said. learn moreBitcoin was "really become the ultimate movement trade," and there are numerous risks that could result in a 40% decline completely out of the blue," said Ed Moya, senior analyst at Oanda.Its volatility in Bitcoin hasn't stopped analysts from seeking to understand the fair value of the currency, and identifying potential prices.Analysts at JPMorgan believe that bitcoin's fair value to be around $38,000 which is around 15% less than its present price based primarily on its relative volatility to that of gold, an alternative asset commonly used by investors to hedge their portfolios against price fluctuations and economic uncertainty.Vanda Research, meanwhile, wrote in a report that most of the bearish bets on a weaker bitcoin price were taken at around $47,000, and "there could be a large short-squeeze in the event that the threshold is met, and retail investors return back to crypto-trading."Meanwhile, correlations between bitcoin and the S&P500 hit the highest level ever on January 31, according to data collected by BofA Global Research, undercutting the argument of those who hope for the use of cryptocurrency as security against market volatility.Investors in the coming week can expect minutes of the Fed's last meeting on monetary policy to be sent out Wednesday. Walmart (WMT.N) and chipmaker Nvidia Corp (NVDA.O) will be among the companies reporting resultsas the corporate earnings season begins.A number of investors are trying to take on the volatility in bitcoin, betting on the long-term viability that blockchain technologies offer, its built in supply limit, and the network effects it brings, will be able to endure despite the frequent price fluctuations.Jurrien Timmer director of macro-economics at Fidelity said that the current Bitcoin speculation to market turmoil that tech stocks endured during the dot-com bubble more than 20 years ago, a boom and bust era that saw only an incredibly small percentage of companies left standing."Amazon is still around and Apple continues to exist and they're larger than ever before and the idea is that with bitcoin that will be much the same" the analyst said. "But bitcoin isn't immune from those waves of speculation and sentiment."Bitcoin could hit $100,000 as soon as 2023. Timmer told me, as per his supply/demand calculations.Other analysts believe that mature cryptocurrencies like bitcoin and ether aren't likely to achieve the spectacular gains they have made since their inception.Instead, they're looking at the world of new, alternative coins that are creating to profit of the money pouring into the crypto market such as the metaverse and NFTs. The latter saw $30,000 worth of venture capital investment in 2017, according to PitchBook?.The most popular altcoins are cosmos Terra Luna, and Polkadot that are all down by 20.5 percent as of 38%, 20.5% and 25.5 percent from the beginning of the year, respectively on the basis of coinmarketcap.com.<img width="429" src="">Understanding the risks connected to their decentralized nature and financial systems is going to be one the main concerns for investors by 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely volatile , but there are significant players both on the institutional and retail side that are expanding, which means that the demand is still growing," said Oanda's Moya.

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