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p>Investors are anticipating more flashes of bitcoin and other cryptocurrency as concerns about an uncompromising Federal Reserve threaten to squelch risks across markets.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The volatility traditionally associated with cryptocurrencies is fully displayed during the last few weeks. Bitcoin is the most popular cryptocurrency, is up 33% in the past month since Jan. 24 and has recently traded at $43,850. It's recovering from a tumble that cut its value by half from the record-setting price. The primary competitor, ether , is up 45percent since Jan. 24 and is trading at $3,200 after a nearly 56 percent drop from its record high of $4,868, also in November.<img width="324" src="">When advocates of cryptocurrencies declared that they were not linked to other assets as a result, bitcoin and its peer experienced huge gains over the period of two years. They soared and gaining momentum alongside stocks as Fed and the rest of central banks infused enormous amounts of stimulus into the global economy. Bitcoin has risen 1,039 percent since March 2020, and Ethereum has seen a rise of 2,940%. The growth in both cryptos have been marred by numerous stomach churning sales.The recent volatility in the market is in line with a larger price decline driven by investors shifting their portfolios around to account for an ever-increasingly aggressive Fed, which is now anticipating to raise rates by 7 times in 2018 as it combats rising inflation. The index that is the benchmark S&P 500 index (.SPX) has dropped 5.5 percent year-to-date, whereas the tech-heavy Nasdaq (.IXIC) dropped 9.3%. dropped 9.3%.Fears that a ferocious loosening and tightening cycles by central banks going forward could stifle high-risk assets has made it difficult for some traders to keep their optimistic outlook regarding bitcoin and other digital currencies An asset class already associated with extreme volatility.An increase in tensions in Ukraine which is where Washington warned that a Russian invasion could be imminent any time, could cause market volatility investors have warned. read moreBitcoin is "really become the most powerful trading platform and there are lots of risk that could cause a 40% fall in a flash," said Ed Moya, senior analyst at Oanda.The volatility of Bitcoin hasn't stopped analysts from attempting to estimate the market's value, or to identify potentially significant price levels.Analysts at JPMorgan estimate bitcoin's current actual value to be about $38,000 which is around 15% lower than its most recent price based upon its fluctuations in comparison to the volatility of gold. Gold is an asset people often invest in to protect their portfolios from volatility in the economy and inflation.Vanda Research, meanwhile, said in a recent note that the majority of bearish bets on a lower bitcoin price had been placed at about $47,000 "there might be a massive short squeeze if that threshold is crossed, and retail investors return into crypto-trading."However, the correlations between Bitcoin and the S&P500 reached the highest level ever on January 31, according the data obtained from BofA Global Research, undercutting some of the arguments made by those hoping to utilize bitcoin as a hedge against market turbulence.Investors next week are expecting minutes of the Fed's recent monetary policy meeting, due out on Wednesday. https://splice.com/bandrule8 (WMT.N) and chipmaker Nvidia Corp (NVDA.O) will be among the companies to announce results, as corporate earnings season kicks off.A few investors are getting ready to take on the volatility of bitcoin, believing that the long-term value proposition from blockchain technology the built-in supply limit and the network effects it creates, will last despite frequent price swings.Jurrien Timmer director of macro-economics at Fidelity said that the current Bitcoin speculation to high volatility tech stocks experienced during the dotcom boom nearly 20 years ago, a boom-and-bust period which saw just a handful of companies remain."Amazon remains in business and Apple is still around , and the two are bigger than ever. the expectation is that for bitcoin, it'll do like Apple," he said. "But bitcoin isn't immune from these waves of speculation or sentiment."Bitcoin could hit $100,000 as soon as 2023. Timmer has said, as per his supply/demand calculations.Others think that mature cryptocurrency such as bitcoin and ether will not be able to deliver the kind of astonishing gains that they have enjoyed since their beginning.Instead, they are turning to the world of emerging, alternative coins that are developing to take advantage of the wealth pouring into the space of crypto such as the metaverse and NFTs which saw $3 billion in venture capital investment last year, according to PitchBook?.There are altcoins that include cosmos Terra Luna, and Polkadot with a drop of around 20.5%, 38% and 25.5 percent year-to-date, respectively according to coinmarketcap.com.Understanding the risks connected to these and decentralized finance is going to be one the main concerns for investors in 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely volatile for the foreseeable future, but there are significant players on both the institutional and retail side that are expanding, and so the interest is growing," said Oanda's Moya.

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