Bitcoin sits on ‘powder keg of volatility’ as bulls, bears tussle over next moves

Bitcoin sits on ‘powder keg of volatility’ as bulls, bears tussle over next moves

Are Bitcoin's (BTC-USD) best days behind it? It depends on who's asked.

For most of January, the digital coin has floated within a narrow range of $40,000 to $48,000, and well below last year's record highs after a brutal late year sell-off. Investors think the relatively stable trading band masks the risk of more wild swings triggered by a short squeeze, but the jury is still out on whether Bitcoin has set a base at current levels. 

Cryptocurrencies have been highly correlated with risk-sensitive assets, falling in sympathy with volatile Wall Street stocks: in Wednesday's session, the Nasdaq Composite hit correction territory and dragged digital tokens lower, with Bitcoin pinned below $42,000.