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p>Investors are anticipating further fluctuations in bitcoin and other cryptocurrency markets, as fears about the hawkishness of the Federal Reserve threaten to squelch risks across markets.The typical volatility related to cryptocurrency has been evident during the last few weeks. Bitcoin , the largest cryptocurrency, is up by about 33% from Jan. 24 and is currently trading at $43,850, bouncing back from the plunge that cut its price by half from its November record-setting price. Its primary rival, ether , has risen by around 45% since Jan. 24 with a price of around $3200, following a nearly 56 percent drop from its record-setting $4,868 and also in November.While advocates of cryptocurrency once asserted that they are not tied to other assets the bitcoin market and its competitors saw huge gains over the past two years, rising like stocks when the Fed together with the other major central banks released enormous amounts of stimulus into the world economy. Bitcoin is up 1,039 percent from March 2020. https://git.sicom.gov.co/maskwrench0 has surged by 2,940%, but the rising prices of both cryptocurrencies have been slowed by frequent stomach churning sales.The recent volatility in the market comes amid a wider price decline driven by investors who are recalibrating their portfolios in preparation for an ever-increasingly aggressive Fed which is anticipating to raise rates by in the range of seven times this year while it combats rising inflation. The index that is the benchmark S&P 500 index (.SPX) has dropped 5.5% year-to-date, while the tech-heavy Nasdaq (.IXIC) had lost 9.3%.Beliefs that a more aggressive current tightening in the central banking system moving forward could stifle risky assets has made it difficult for traders to maintain their optimistic view regarding bitcoin and various cryptos as an asset class associated with extreme volatility.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe><img width="498" src="">Tensions are rising in Ukraine as Washington warned that a Russian invasion could be imminent anytime soon, could cause market volatility Investors warned. find out moreBitcoin will "really become the ultimate investment that is gaining momentum and has plenty of risks that could cause a 40% drop that appears out of thin air," said Ed Moya of Oanda, a senior analyst. Oanda.Its volatility in Bitcoin hasn't stopped analysts from seeking to understand the market's value, or point out potential price points.Analysts at JPMorgan estimate bitcoin's current fair value at about $38,000 , or 15% below its recent price based primarily on its fluctuations in comparison to the volatility of gold. Gold is an asset commonly used by investors to protect their portfolios from volatility in the economy and inflation.Vanda Research, meanwhile, wrote in a report that the bulk of bearish bets on a lower bitcoin value were put in at around $47,000 "there might be a massive short squeeze if the threshold is crossed and retail investors are reintroduced to trading in crypto."The correlations between bitcoin and the S&P500 reached an all-time high on Jan 31, according data from BofA Global Research, undercutting the argument for those who want to utilize the cryptocurrency as the hedge against market volatility.Investors next week can look forward to minutes from the most recent Federal Reserve meeting on monetary policy due to be released on Wednesday. Walmart (WMT.N) as well as chip maker Nvidia Corp (NVDA.O) will be among the companies to report results, as corporate earnings season continues.Certain investors are bracing themselves to take advantage of the volatility in bitcoin, assuming that the long-term benefits associated with blockchain technology its built-in supply limit and the network effect it produces, will endure despite the constant price swings.Jurrien Timmer, director of macro-economics at Fidelity The Fidelity director compared the present speculation in cryptocurrencies to the high volatility tech stocks experienced during the dot-com boom more than two decades ago. https://vuf.minagricultura.gov.co/Lists/Informacin%20Servicios%20Web/DispForm.aspx?ID=12518 was a boom and bust era that saw only the smallest number of businesses left standing."Amazon is still active and Apple is still around and they're both bigger than ever. the expectation is that for bitcoin it's going to be as well," the analyst said. "But bitcoin isn't immune from the waves of speculation and sentiment."Bitcoin could reach $100,000 by 2023. Timmer claimed, basing his supply/demand models.Other analysts believe that mature cryptocurrencies like Bitcoin and Ethereum are not likely for the kind of stunning gains they have achieved since their inception.Instead, they are turning at the world of new alternative coins in development to capitalize from the capital pouring into the crypto-currency space, including the metaverse and NFTs. These coins saw $3 billion in venture capital investment last year, according PitchBook?.The most popular altcoins are cosmos Terra Luna, and Polkadot that are down 20.5% (38%), 20.5%, and 25.5 percent from the beginning of the year, respectively as per coinmarketcap.com.Understanding the risks related to the decentralized financial system and its risks is likely to be among the major challenges for investors in 2022, according to Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to remain very volatile going forward, but there are significant players on the institutional and retail side that are growing, so interest is growing," said Oanda's Moya.

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