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p>Investors are expecting more variations in bitcoin, and other cryptocurrencies, while worries about an aggressive Federal Reserve threaten to squelch market risk appetite.The extreme volatility usually associated with cryptocurrencies is on full display in recent weeks. Bitcoin is the biggest cryptocurrency, has increased by around 33% since Jan. 24 and has recently traded at $43,850. The price has risen from the plunge that cut its price by half since November's record-setting high. The primary competitor, Ether, is climbing around 45% since Jan. 24 with a price of around $3200 and has seen a nearly 56 percent drop from the record high of $4,868, at the time of the November.The proponents of cryptocurrency previously declared that they were not linked to other assets bitcoin and its peers gained hugely over the last two years, rallying alongside stocks as the Fed or other central banks unleashed unimaginable amounts of stimulus to the world economy. Bitcoin is up 1,039 percent since March 2019, and ether has risen 2,940%. The rises of both currencies have stopped by several stomach churning sales.Their recent volatility has been accompanied by a wider market selloff caused by investors refining their portfolios to prepare for an ever-increasingly aggressive Fed that is predicted to raise rates nearly seven times during the year as it fights rising inflation. The most widely used S&P 500 index (.SPX) is down 5.5 percent so far this year, while the technology-focused Nasdaq (.IXIC) lost 9.3%. dropped 9.3%.<img width="470" src=""><iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>The fear that an aggressive pace of tightening by the central bank going forward will depress risky assets has made it difficult for some traders to maintain their positive outlook on bitcoin and other cryptocurrency the asset class classified as having high volatility.As tensions escalate in Ukraine and Ukraine, where Washington warned a Russian invasion could be imminent at any time, may spark broad market moves investors have warned. Find out moreBitcoin can "really become the most powerful the market that has momentum, and there's several risks that could cause a 40% fall in a flash," said Ed Moya Oanda's senior analyst. Oanda.There are a few analysts from looking to determine the true value of the currency or identify possible price points.Analysts at JPMorgan believe that bitcoin's valuation at around $38,000 . This is roughly 15% lower than the current price , based upon its fluctuation in comparison to that of gold. http://www.docspal.com/viewer?id=- is a second asset that investors frequently use to hedge their portfolios against price fluctuations and economic uncertainty.Vanda Research, meanwhile, has stated in a note that the majority of bets that were speculative on a lower bitcoin price had been placed at around $47,000 "there may be a substantial short-squeeze should the threshold is exceeded, and retail investors are reintroduced back to crypto-trading."Furthermore, correlations between bitcoin and the S&P500 reached the highest level ever on January 31, according to data from BofA Global Research, undercutting the argument of those who hope to utilize the cryptocurrency as an investment to protect against market volatility.Investors are expected next week to receive minutes from the Federal Reserve's most recent meeting on monetary policy, which is due out on Wednesday. Walmart (WMT.N) as well as chipmaker Nvidia Corp (NVDA.O) will be among the companies to announce resultsas earnings season kicks off.A few investors are preparing themselves to take advantage of the volatility in bitcoin, believing that the potential long-term investment in blockchain technology its built in supply limit, and the network effects it has created, will endure regardless of the numerous price swings.Jurrien Timmer, director of macro-economics at Fidelity has compared the current speculation about cryptocurrency to the turbulence tech stocks experienced during the dotcom era nearly two decades ago. boom and bust era that saw only an incredibly small percentage of businesses left standing."Amazon is still around and Apple remains around and they're larger than ever before and we're thinking that for bitcoin that will be much the same" says the expert. "But bitcoin isn't immune from those waves of speculation and sentiment."Bitcoin could hit the $100,000 mark by 2023, Timmer told me, using his supply and demand models.Others are of the opinion that mature currencies like Bitcoin and Ether are unlikely to produce the impressive gains that they have racked up since their beginning.Instead, they are turning towards the vast universe of new alternative coins developing to take advantage of the money pouring into the crypto sector, including the metaverse and NFTs, which accounted for more than $30 billion of venture capital investments last year, according PitchBook?.Other altcoins include cosmos Terra Luna, and Polkadot, which are down around 20.5 percent (38%), 20.5%, and 25.5 percent over the past year, respectively, on the basis of coinmarketcap.com.Understanding the risks related to the financial sector and decentralized banking is going to be one the most important challenges for investors by 2022, said Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are likely to remain extremely uncertain in the future, yet there are some significant players on both the institutional side and the retail side that are expanding, which means that the demand continues to grow," said Oanda's Moya.

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