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p>Investors are anticipating more excitement in bitcoin and the other cryptocurrency, as fears of the hawkishness of the Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The extreme volatility usually associated with cryptocurrency is all over the news over the past few weeks. Bitcoin is the largest cryptocurrency, is up about 33% from Jan. 24 and recently traded at $43,850. It's regaining its value after an inflection point that cut its price by half from its record-setting high. The main competitor, ether is up 45percent since January. 24 when it was trading around $3200 which follows a more than 56% nosedive from its record high of $4,868, at the time of the November.Although those who advocated for cryptocurrencies previously boasted of their lack of a correlation to other assets bitcoin and its peers gained hugely over the last two years. They have risen and gaining momentum alongside stocks as Fed and other central banks introduced extraordinary levels of stimulus into the global economy. https://notes.io/UX2n has risen 1,039 percent from March 2020. ether has risen 2,940%. The rises of both currencies have seen a flurry of stomach-churning selling.Their recent volatility has occurred amid a broad price decline driven by investors making adjustments to their portfolios to account for an increasingly aggressive Fed which is anticipated to raise rates in the range of seven times this year in order to battles rising inflation. The most widely used S&P 500 index (.SPX) is down 5.5 percent in the year to date, while the tech-heavy Nasdaq (.IXIC) was down by 9.3%. lost 9.3%.Beliefs that a more aggressive pace of tightening by the central bank going further will hit risksy assets has made difficult for traders to maintain their optimistic outlook on bitcoin as well as other cryptos as an asset class identified with intense volatility.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The escalating tensions in Ukraine as Washington warned a Russian invasion could be imminent anytime soon, could lead to market shifts in the future Investors said. read moreBitcoin can "really become the ultimate the market that has momentum, and there's so many risk factors that could trigger a 40% drop seemingly out of thin air," said Ed Moya as the senior analyst of Oanda.The volatility of Bitcoin hasn't stopped experts from trying to establish its fair value or point out potentially important price levels.Analysts at JPMorgan believe that bitcoin's fair value at about $38,000 , which is about 15% below its current price based upon its fluctuation in comparison to that for gold, another investment investors often use to hedge their portfolios against rising inflation and economic uncertainty.Vanda Research, meanwhile, said in a recent note that the majority of bearish bets on a weaker bitcoin price had been placed at around $47,000, and "there may be a substantial short-squeeze , if the threshold is met, and retail investors are reintroduced to trading in crypto."Furthermore, correlations between bitcoin and the S&P 500 climbed to an all-time high on January 31, according data taken from BofA Global Research, undercutting the claims of those who plan to utilize bitcoin as an asset to shield against market volatility.Investors will be getting minutes of the Fed's latest meeting on monetary policy to be sent out on Wednesday. Walmart (WMT.N) as well as chipmaker Nvidia Corp (NVDA.O) will be among the companies reporting results, as corporate earnings season begins.A few investors are preparing themselves to take on the volatility in bitcoin, assuming that the long-term benefits for blockchain tech, its built-in supply limit and the network effects it generates, will last even in the face of frequent price fluctuations.Jurrien Timmer, director of macro-economics at Fidelity described the current cryptocurrency speculation to turmoil experienced by tech stocks in the dot-com boom more than 20 years ago, a boom-and -bust time period that saw just a handful of businesses left standing."Amazon remains around, as is Apple is still around , and they're both bigger than ever. the thinking is that for bitcoin, it'll be just similar," The man said. "But it's not immune to these waves of speculation or sentiment."Bitcoin could reach $100 million by 2023. Timmer claims, using his supply and demand models.Others believe that mature cryptocurrencies such as bitcoin and ether will not be able in delivering the breathtaking gains they have experienced since their founding.Instead, they're turning to the wide world of alternative currencies that are being developed to make use from the capital pouring into the space of crypto which includes the metaverse as well as NFTs, which saw $3 billion in venture capital investments last year, according PitchBook?.Other altcoins include cosmos Terra Luna, and Polkadot which are down 20.5 percent (38%), 20.5%, and 25.5 percent, year-to date, respectively, at the time of coinmarketcap.com.<img width="447" src="https://preview.redd.it/hqez9wlyuwrz.jpg?auto=webp&s=9513360af4b77f1a9d0f89bb759752cd6d74988e">Understanding the risks related to the decentralized financial system and its risks is going to be one of the main challenges for investors by 2022, says Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very uncertain in the future, yet there are significant players both on the institutional and retail side who are growing, so the interest is growing," said Oanda's Moya.

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