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p><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Investors are expecting more volatility in bitcoin and other cryptocurrency, as fears of an uncompromising Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The volatility commonly associated with cryptocurrency is at full display in recent weeks. Bitcoin is the biggest cryptocurrency, has gained roughly 33% from January. 24. http://huku.fool.jp/kodomo/wiki/index.php?lawsoncastillo906731 has been trading at $43,850, bouncing back from drop that cut value by half from the record peak. http://ezproxy.cityu.edu.hk/login?url=https://lexsrv3.nlm.nih.gov/fdse/search/search.pl?match=0&realm=all&terms=https://anotepad.com/notes/69bin3dw , Ethereum, is up by about 45% since Jan. 24 when it was trading around $3200 in the wake of a near 56 percent drop from the record high of $4,868, the same month in November.Although those who advocated for cryptocurrencies previously declared that they were not linked to other assets, bitcoin and its peers have seen huge gains in the past two years, rising together with stocks, as the Fed and other central banking institutions pumped unprecedented amounts of stimulus in the world economy. Bitcoin has increased by 1,039 percent since March of 2020 and Ethereum has seen a rise of 2940%. But the gains in both have been interrupted by numerous-stomach churning sales.Their recent volatility is a result of a larger market selloff triggered by investors recalibrating their portfolios to account for an even more aggressive Fed which is likely to increase rates more than seven times in the coming year as it is fighting rising inflation. The benchmark S&P 500 index (.SPX) is down 5.5% year-to-date, while the tech-driven Nasdaq (.IXIC) lost 9.3%. dropped 9.3%.Worries that an aggressive loosening and tightening cycles by central banks going further will hit risksy assets has made difficult for some traders to maintain their bullish outlook for bitcoin and cryptos as an asset class identified with intense volatility.An increase in tensions in Ukraine, where Washington warned that a Russian invasion could start any time, could cause market volatility as investors speculated. Read moreBitcoin was "really become the ultimate investment that is gaining momentum and has so many risks that can trigger a 40% drop completely out of the blue," said Ed Moya the senior analyst at Oanda.The volatility of Bitcoin doesn't stop some analysts from trying to determine the true value of the currency or identify possible price points.Analysts at JPMorgan believe that bitcoin's fair value at around $38,000 - some 15% lower than its most recent cost based on the volatile nature in comparison to that of gold. Gold is a second asset people often invest in to protect their portfolios from volatility in the economy and inflation.Vanda Research, meanwhile, wrote in a report that the majority of bets that were speculative on a lower bitcoin price were entered at about $47,000 "there could be a large short squeeze if that threshold is reached, and retail investors are reintroduced to crypto-trading."However, the correlations between Bitcoin and the S&P500 reached the highest level ever on January 31, according the data collected by BofA Global Research, undercutting the logic of those hoping to take advantage of the cryptocurrency as an insurance against market volatility.Investors can look forward to minutes of the Fed's recent annual meeting of its monetary policy committee, due out on Wednesday. Walmart (WMT.N) in addition to chip maker Nvidia Corp (NVDA.O) will be among the companies that will release resultsas the corporate earnings season continues.Some investors are planning to take advantage of the volatility in bitcoin, believing that the long-term benefits that blockchain technologies offer, the built-in supply limit and the network effect it creates, will last regardless of the frequent price fluctuations.<img width="308" src="https://image.slidesharecdn.com/v3-q32015sob1-151014141801-lva1-app6892/95/state-of-bitcoin-and-blockchain-q3-2015-15-638.jpg?cb\u003d1521822877">Jurrien Timmer, director of macro-economics at Fidelity, likened the current speculation about cryptocurrency to the volatility experienced by tech stocks during the dot-com bubble more than two decades ago. boom and bust period that resulted in relatively few companies remain."Amazon is still in existence and Apple remains in business and they're both bigger than ever. the assumption is that for bitcoin that will be similarly," says the expert. "But it's not immune to those waves of speculation and sentiment."Bitcoin could reach $100,000 by 2023. Timmer says, basing his supply/demand models.Other experts believe that mature cryptocurrency, such as bitcoin and ether have a low chance to provide the astonishing gains that they have enjoyed since the time of their creation.Instead, they're looking to the universe of new alternative currencies that are in development to capitalize of the investment flowing into the crypto market which includes the metaverse as well as NFTs. These coins saw around $30 billion worth worth of venture capital investment last year according to PitchBook?.The most popular altcoins are cosmos Terra Luna, and Polkadot with a drop of around 20.5% in the past three months, with 38% and 25.5 percentage year-to-date as per coinmarketcap.com.Understanding the risks related to these and decentralized finance is likely to be one of the main concerns for investors by 2022, says Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain volatile , but there are some significant players on both the institutional and retail side that are still growing, so the interest is still growing," said Oanda's Moya.

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