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p>Investors are looking forward to more exuberance in bitcoin and digital currencies, as concerns about a hawkish Federal Reserve threaten to squelch the market's appetite for risk.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The volatility typically associated with cryptocurrency has been displayed over the past few weeks. Bitcoin is the most popular cryptocurrency, has risen by approximately 33% since Jan. 24. It was last traded at $43,850, rebounding from it's plunge, which cut its price by half from its November record-setting highest. Its main rival, ether , has risen by around 45percent since Jan. 24, at about $3,200 after a 56 percent drop from the record high of $4,868, and also in November.The advocates of cryptocurrency have previously exaggerated their lack of connection to other assets bitcoin and its peers witnessed huge gains over past two years. They've been rising along with stocks as the Fed and the rest of central banks introduced enormous amounts of stimulus into the global economy. Bitcoin has risen 1,039 percentage since March 2020. Ethereum has grown by 2,940%, but the gains in both have stopped by several stomach churning selling.The recent volatility in the market has come amid a broader market decline triggered by investors making adjustments to their portfolios to account for an even more aggressive Fed, which is now expecting to raise rates as high as seven times in the coming year as it fights rising inflation. The index that is the benchmark S&P 500 index (.SPX) has dropped 5.5 percent since the start of the year, and the tech-heavy Nasdaq (.IXIC) had lost 9.3%.Fears that a ferocious policy of central banks tightening going forward will depress high-risk assets has made it difficult for some traders to maintain their bullish outlook for bitcoin and other cryptos. http://sc.sie.gov.hk/TuniS/issuu.com/royalqq2 has already been associated with extreme volatility.Rising tensions in Ukraine, where Washington warned a Russian invasion could be imminent any day, could also trigger market movements across the board investors have warned. find out moreBitcoin does "really become the most powerful market for momentum trading and there are numerous risks that could trigger a 40% drop completely out of the blue," said Ed Moya, senior analyst at Oanda.Its volatility in Bitcoin hasn't stopped experts from trying to assess the fair value of the currency, or to identify potentially significant prices.Analysts at JPMorgan estimate bitcoin's current valuation at around $38,000 . This is roughly 15% below its recent price , based upon its volatility in comparison with that of gold, an alternative asset many investors use to hedge their portfolios against rising inflation and economic uncertainty.Vanda Research, meanwhile, revealed in a new note that the bulk of bearish bets on a lower bitcoin were placed around $47,000, and "there might be a massive short-squeeze in the event that the threshold is met, and retail investors return to trading on cryptocurrency."In addition, the correlations between bitcoin and the S&P 500 reached an all-time high on January 31, according data at BofA Global Research, undercutting any argument that people might make to make use of bitcoin as a hedge against market turbulence.Investors can look forward to minutes from the Fed's most recent meeting on monetary policy, which is due out Wednesday. Walmart (WMT.N) and chip maker Nvidia Corp (NVDA.O) will figure among those releasing results, as corporate earnings season continues.A number of investors are trying to ride out the volatility of bitcoin, assuming that the long-term benefit that blockchain technologies offer, its built-in supply limit and the effect on networks it produces, will endure despite the frequent price fluctuations.Jurrien Timmer director of macro-economics at Fidelity and Fidelity, compared the current cryptocurrency market to the high volatility tech stocks experienced during the dotcom era over two decades ago. This was a boom-and -bust time period that saw an incredibly small percentage of companies remain.<img width="319" src="">"Amazon is still going strong and Apple is still around , and they're larger than ever before and the assumption is that for bitcoin it'll be exactly much the same" He said. "But bitcoin isn't immune to these waves of speculation or sentiment."Bitcoin could hit $100,000 as soon as 2023, Timmer stated, based on his supply/demand models.Others believe that mature cryptocurrencies such as bitcoin and ether aren't going in delivering the spectacular gains they have made since their creation.Instead, they are looking at the possibilities of new alternative currencies that are being created to take advantage of the cash flowing into the crypto-currency space such as the metaverse and NFTs, which saw more than $30 billion of venture capital investment in 2017, according to PitchBook?.There are a few altcoins like cosmos, Terra Luna, and Polkadot in the range of 20.5 percent three times, and 25.5 percentage year-to-date on the basis of coinmarketcap.com.Understanding the risks associated with decentralized finance and the risk of them going to be one of the biggest challenges facing investors by 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely volatile in the coming years, but there are significant players both on the institutional side and the retail side who are growing, so the interest is growing," said Oanda's Moya.

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