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p>Investors are expecting more volatility in bitcoin and other cryptocurrencies, as worries over the direction of the Federal Reserve threaten to squelch investors' appetite to take risks across the markets.The usual volatility in cryptocurrencies has been displayed over the past few weeks. Bitcoin , the largest cryptocurrency, has risen by about 33% from Jan. 24, and lastly traded at $43,850, bouncing back from the plunge that cut its price by half from its November record-setting highest. The major competitor, ether , is up about 45percent since Jan. 24 at around $3,200 as of Jan. 24, following a 56 percent decline from its record high of $4,868, which was also recorded in November.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Though advocates of cryptocurrencies have stated that they have no correlation to other assets, bitcoin and its peers have seen huge gains in the past two years, rising together with stocks, as the Fed together with the other major central banks unleashed unprecedented amounts of stimulus in the world economy. Bitcoin has risen 1,039 percent since the beginning of March, while the ether price has increased 2,940%, though the increase in both of them has been interrupted by numerous-stomach churning selloffs.The recent volatility in the market has occurred amid a broad market selloff triggered by investors recalibrating their portfolios to account for the more aggressive Fed that is forecast to raise rates nearly seven times this year as it combats the rising cost of living. The index that is the benchmark S&P 500 index (.SPX) has dropped 5.5 percent so far this year, while the technologically-oriented Nasdaq (.IXIC) had dropped 9.3 percent..The fear that an aggressive government tightening of the pace going forward will depress risksy assets has made difficult for some traders to maintain their bullish outlook for bitcoin and cryptos An asset class already marked by its high volatility.<img width="431" src="">The escalating tensions in Ukraine the country where Washington warned that a Russian invasion could begin any minute, could lead to market shifts in the future analysts said. Learn moreBitcoin does "really become the ultimate trading platform and there are numerous risks that could trigger a 40% drop in a flash," said Ed Moya the senior analyst at Oanda.Its volatility in Bitcoin hasn't stopped analysts from trying to gauge the currency's fair value or to identify potentially significant price levels.Analysts at JPMorgan estimate bitcoin's current fair value as $38,000 , which is 15% below its recent value based on its fluctuation in comparison to that of gold. Gold is an asset that investors frequently use to hedge their portfolios against risk of economic instability and inflation.Vanda Research, meanwhile, revealed in a new note that the bulk of bearish bets on a lower bitcoin price were made at around $47,000, and "there may be a large short squeeze if the threshold is crossed and retail investors return to trading in crypto."Meanwhile, correlations between bitcoin and the S&P500 reached the all-time highest on Jan 31 according to data from BofA Global Research, undercutting the arguments for those looking to utilize the cryptocurrency as security against market volatility.Investors are expected next week to receive minutes from the last Fed annual meeting of its monetary policy committee, due to be released on Wednesday. https://goatsoup2.werite.net/post/2022/02/13/How-to-Buy-Bitcoin (WMT.N) and chipmaker Nvidia Corp (NVDA.O) will figure among those releasing results, as corporate earnings season gets underway.Some investors are steeling themselves to weather the volatility in bitcoin, betting that the long-term value proposition for blockchain tech, the built in supply limit, and the effects it brings, will be able to endure regardless of the numerous price swings.Jurrien Timmer director of global macro at Fidelity explained that the current speculation about cryptocurrency to the volatility experienced by tech stocks during the dot-com era more than two decades ago. It was a boom-and-bust period that saw just a handful of firms left standing."Amazon is still in existence and Apple remains in business and the two are bigger than ever. the thinking is that for bitcoin it'll be exactly as well," explained the man. "But it's not immune to those waves of speculation and sentiment."Bitcoin could reach $100 million by 2023, Timmer claims, based on his supply/demand models.Other analysts believe that mature cryptocurrencies like bitcoin and ether are unlikely in delivering the breathtaking gains they have experienced since their creation.Instead, they're turning at the world of new, alternative coins that are being created to benefit of the cash flowing into the cryptocurrency space such as the metaverse and NFTs, which saw an investment of 30 billion from venture capital investment last year, according PitchBook?.Certain altcoins include cosmos Terra Luna, and Polkadot and are trading at around 20.5 percent, 38% and 25.5 percentage year-to-date by coinmarketcap.com.Understanding the risks connected to the financial sector and decentralized banking is going to be one the major challenges for investors in 2022. Lily Francus, director of quantitative research strategy at Moody's Analytics.Cryptocurrencies "are going to be extremely volatile , but there are some major players on the institutional and retail side that are increasing, so interest continues to grow," said Oanda's Moya.

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