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p>Investors are anticipating more variations in bitcoin, and other cryptocurrencies, amid concerns that an uncompromising Federal Reserve threaten to squelch the appetite for risk across markets.The volatility that is typically related to cryptocurrency has been evident over the past few weeks. Bitcoin is the largest cryptocurrency, has risen by nearly 33% as of Jan. 24 and recently traded at $43,850. It's regaining its value after drop that cut price in half from November's record high. Its most popular rival, the Ether, has gained around 45percent since January. 24, at about $3,200 and has seen a nearly 56 percent plunge from its record high of $4,868, the same month in November.Though advocates of cryptocurrencies have asserted that they are not tied to other assets as a result, bitcoin and its peer experienced huge gains over the recent two years. They've risen along with stocks while the Fed and other central bankers pumped unimaginable amounts of stimulus to the global economy. Bitcoin is up 1,039% since March 2020 and Ethereum has surged by 2,940%. The growth in both cryptos have been disrupted by stomach-churning sales.Their recent volatility has occurred in the midst of a wider market selloff caused by investors updating their portfolios to make room for an increasingly aggressive Fed, which is now likely to increase rates as many as seven times this year while it is fighting rising inflation. The benchmark S&P 500 index (.SPX) has dropped 5.5% year-to-date, while the technology-focused Nasdaq (.IXIC) also has dropped 9.3 percent..Concerns that an aggressive pace of tightening by the central bank going ahead will weaken more risky assets have made difficult for some traders to maintain their positive view on bitcoin and other cryptocurrency as an asset class identified with intense volatility.Escalating tensions in Ukraine and Ukraine, where Washington warned that a Russian invasion could begin anytime soon, can result in market swings Investors said. Learn more<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Bitcoin can "really become the ultimate the market that has momentum, and there's numerous risks that could cause a 40% drop seemingly out of thin air," said Ed Moya as the senior analyst of Oanda.However, the volatility of Bitcoin isn't stopping some analysts from trying to determine the fair value of the currency, and identifying potential price levels.Analysts at JPMorgan believe that bitcoin's price at around $38,000 , which is 15% below its recent price , based on its variability in comparison with the volatility of gold. https://atavi.com/share/vb215fznbgmj is a second asset used by investors to protect their portfolios from rising inflation and economic uncertainty.Vanda Research, meanwhile, stated in a recent report that most of the bets that were speculative on a lower bitcoin price had been placed at approximately $47,000 "there could be a major short-squeeze if this threshold is met and retail investors return back to crypto-trading."In addition, the correlations between bitcoin and the S&P500 rose to an all time high on Jan 31 according to data of BofA Global Research, undercutting the logic of those hoping to take advantage of the cryptocurrency as the hedge against market volatility.Investors next week can look forward to minutes of the Fed's last financial policy meeting due out on Wednesday. Walmart (WMT.N) as well as chipmaker Nvidia Corp (NVDA.O) will figure among those releasing results, as corporate earnings season kicks off.A number of investors are trying to weather 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 changes.Jurrien Timmer director of global macro at Fidelity has compared the current speculation in cryptocurrencies to the volatile tech stocks that were experiencing during the dot-com bubble more than two decades ago, a boom-and-bust period which saw an extremely small number of businesses left standing."Amazon is still going strong and Apple remains around and they're bigger than ever and it's believed that for bitcoin it's going to be similarly," says the expert. "But bitcoin isn't immune to the waves of speculation and sentiment."Bitcoin could hit $100 million by 2023, Timmer believes, as per his supply/demand calculations.Some believe that mature cryptocurrency like Bitcoin and Ethereum are not likely to deliver the kind of spectacular gains they have made since their inception.Instead, they are turning towards the vast universe of new, alternative coins that are being made to make the most from the capital pouring into the crypto market such as the metaverse and NFTs. These coins saw more than $30 billion of venture capital investment last year, according PitchBook?.Some altcoins include cosmos, Terra Luna, and Polkadot that are down 20.5 percent, 38% and 25.5 percent for the year to date, respectively on the basis of coinmarketcap.com.<img width="451" src="">Understanding the risks linked to the decentralized financial system and its risks is going to be one of the most significant challenges for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely unstable in the future, but there are significant players both on the institutional side and the retail side who are expanding, so the market is growing," said Oanda's Moya.

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