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p>Investors are expecting more exuberance in bitcoin and cryptocurrencies, as worries over the hawkishness of the Federal Reserve threaten to squelch risk appetite across markets.The volatility normally associated with cryptocurrencies has been prominent over the past few weeks. Bitcoin , the largest cryptocurrency, is climbing by around 33% since January. 24 and recently traded at $43,850, rebounding from a tumble that cut its price in half from November's record highest. Its main rival, ether , is up about 45percent since Jan. 24 when it was trading around $3200 with a 58 percent drop from its record high of $4,868, that was in November.Though advocates of cryptocurrencies have denied their correlation to other assets bitcoin and its ilk saw huge gains over the last two years, rallying along with stocks while the Fed and central banking institutions pumped unprecedented levels of stimulus into the global economy. Bitcoin is up 1,039 percentage since March 2020. the ether price has increased 2,940%. The increase in both of them has been slowed by a series of stomach-churning selloffs.<img width="422" src="">Their recent volatility has occurred in the midst of a wider market decline triggered by investors who are recalibrating their portfolios in preparation for the more aggressive Fed which is expecting to raise rates as high as seven times over the course of this year, as it combats the rising cost of living. The standard S&P 500 index (.SPX) has dropped 5.5 percent since the start of the year, and the high-tech Nasdaq (.IXIC) had lost 9.3%.The fear that an aggressive government tightening of the pace going forward could stifle high-risk assets has made it difficult for traders to maintain their optimistic view on bitcoin and other cryptos the asset class that has been identified as being extremely volatile.The escalating tensions in Ukraine the country where Washington warned that a Russian invasion could occur any minute, could generate market-wide volatility investors have warned. find out moreBitcoin was "really become the ultimate the market that has momentum, and there's several risks that could cause a 40% loss out of nowhere," said Ed Moya, senior analyst at Oanda.Bitcoin's volatility hasn't stopped some analysts from trying to gauge what the price of Bitcoin is or identify possible price points.Analysts at JPMorgan believe that bitcoin's fair value to be around $38,000 . This is roughly 15% lower than the current price based upon its variability in comparison with the volatility in gold, a similar asset many investors use to protect their portfolios from volatility in the economy and inflation.Vanda Research, meanwhile, revealed in a new note that most of the negative bets on the weaker bitcoin price were placed at around $47,000 "there could be a large short-squeeze in the event that the threshold is crossed and retail investors are reintroduced to trading crypto."As for the other side, correlations between the bitcoin and the S&P500 climbed to the highest level ever on January 31 according to data at BofA Global Research, undercutting the case for those hoping to use bitcoin as an asset to shield against market volatility.Investors are expected next week to receive minutes from the most recent Fed gathering on monetary policies, which will come out on Wednesday. https://lexsrv3.nlm.nih.gov/fdse/search/search.pl?match=0&realm=all&terms=https://www.ted.com/profiles/33359894 (WMT.N) in addition to chip maker Nvidia Corp (NVDA.O) will include among the companies releasing results, as corporate earnings season rolls on.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>A few investors are preparing themselves to weather the volatility in bitcoin, betting that the long-term value proposition Blockchain technology the built-in supply limit and the network effect it creates, will last despite the constant price swings.Jurrien Timmer director of macro-economics at Fidelity explained that the current cryptocurrency market to the volatility experienced by tech stocks during the dot-com boom more than two decades ago. boom and bust cycle that left just a handful of companies remain."Amazon is still around , and Apple is around as well and they're bigger than they've ever been and the expectation is that for bitcoin, it will be as well," his statement reads. "But it's not immune to those waves of speculation and sentiment."Bitcoin could reach $100,000 by 2023, Timmer told me, according to his supply/demand model.Others are of the opinion that mature currencies like bitcoin and ether will not be able to deliver the kind of spectacular gains they have made since the time of their creation.Instead, they're looking at the possibilities of new alternative currencies that are developing to take advantage of the wealth flowing into the crypto space, including the metaverse and NFTs, which accounted for more than $30 billion of venture capital investments this year, as per PitchBook?.There are a few altcoins like cosmos, Terra Luna, and Polkadot which are down 20.5 percent 35.8%, 38.8% and 25.5 percent year-to-date, respectively at the time of coinmarketcap.com.Knowing the risks associated with the financial sector and decentralized banking is likely to be one of the most significant challenges for investors in 2022. Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very uncertain in the future, yet there are some significant players on both the institutional side and the retail side that are still expanding, and so the interest continues to grow," said Oanda's Moya.

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