Bitcoin sits on ‘powder keg of volatility’ as bulls, bears tussle over next moves
- Date: 20-Jan-2022
- Source: Yahoo News
- Sector:Financial Markets
- Country:Middle East
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.