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p>Investors are ready for further flashes of bitcoin and other digital currencies, as concerns about an overly hawkish Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The volatility normally associated with cryptocurrency has been at full display in recent weeks. Bitcoin is the biggest cryptocurrency, has gained around 33% since Jan. 24 and was recently trading at $43,850, rebounding from drop that cut value by half from the record high. The main competitor, ether , is up about 45% since Jan. 24 to around $3,200, following a nearly 56 percent decline from its record-setting $4,868 as of November.Even though advocates of cryptocurrencies touted their lack of correlation to other assets, bitcoin and its peers experienced huge gains over the two years that followed, rising along with stocks as the Fed together with the other major central bankers pumped enormous amounts of stimulus into the world economy. http://www.docspal.com/viewer?id=- is up 1,039 percent since March of 2020 and Ether has gained 2940%, however the rising prices of both cryptocurrencies have seen a flurry of stomach-churning selling.The recent volatility in the market is part of a larger downturn in the market, triggered by people updating their portfolios to make room for an increasingly aggressive Fed which is predicted to raise rates in the range of seven times in the coming year as it is fighting rising inflation. The most widely used S&P 500 index (.SPX) is down 5.5 percent year-to-date, whereas the technology-focused Nasdaq (.IXIC) had dropped 9.3 percent..<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The fear that an aggressive Central Bank tightening process going into the future will harm risky assets has made it difficult for some traders to maintain their positive outlook for bitcoin and other cryptos An asset class already identified with intense volatility.Escalating tensions in Ukraine as Washington warned a Russian invasion could take place anytime, may cause market volatility Investors have said. read moreBitcoin has "really become the most powerful momentum trade and there are plenty of risks that could cause a 40% plunge that appears out of thin air," said Ed Moya the senior analyst at Oanda.However, the volatility of Bitcoin isn't stopping some analysts from trying to determine the market's value, or point out potential prices.Analysts at JPMorgan believe that bitcoin's fair value at around 38,000 dollars, about 15% less than its present price , based upon its fluctuations in comparison to the volatility of gold. Gold is a second asset many investors use to protect their portfolios from volatility in the economy and inflation.Vanda Research, meanwhile, said in a recent note that most of the bearish bets made on a less bitcoin price were placed around $47,000, and "there could be a major short-squeeze if this threshold is reached, and retail investors are reintroduced to trading on cryptocurrency."Additionally, the correlations between bitcoin and the S&P 500 reached an all-time high on January 31, according data taken from BofA Global Research, undercutting the arguments for those looking to make use of bitcoin as an investment to protect against market volatility.Investors this week will get minutes from the most recent Fed meeting on monetary policy due out on Wednesday. Walmart (WMT.N) and chip maker Nvidia Corp (NVDA.O) will be among those reporting results, as corporate earnings season begins.Some investors are steeling themselves to ride out the volatility in bitcoin, hoping on the long-term viability in blockchain technology the built-in supply limit and the network effect it creates, will continue regardless of price fluctuations.<img width="370" src="">Jurrien Timmer, director of global macro at Fidelity is comparing the current speculation in cryptocurrencies to the market turmoil that tech stocks endured during the dotcom period more than 20 years ago, a boom-and bust period in which there was the smallest number of companies surviving."Amazon continues to exist and Apple remains in business and the two are bigger than ever. the assumption is that for bitcoin, it will be exact," He said. "But bitcoin isn't immune from the waves of speculation and sentiment."Bitcoin could reach $100,000 as soon as 2023, Timmer claims, Based on his supply-demand models.Others think that mature cryptocurrency such as bitcoin and ether aren't likely to achieve the eye-watering gains they have notched since their inception.Instead, they are turning to the wide world of alternative coins creating to profit of the money flooding into the crypto-currency space, including the metaverse and NFTs, which received $30 billion worth of venture capital investments in 2013, according to PitchBook?.There are a few altcoins like cosmos, Terra Luna, and Polkadot in the range of 20.5% 35.8%, 38.8% and 25.5 percentages year-todate, respectively according to coinmarketcap.com.Understanding the risks associated with the decentralized financial system and its risks is likely to be one of the biggest challenges facing 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 growing, meaning that interest is growing," said Oanda's Moya.

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