Key Points
- Bitcoin’s price dropped to $94.1K due to profit-taking and concerns about Google’s quantum update.
- A potential solution to quantum threats is developing quantum-resistant Bitcoin through a soft fork upgrade.
Bitcoin, the leading cryptocurrency, experienced a significant price drop on the 9th of December, falling to $94.1K.
This price drop was attributed to profit-taking and concerns about Google’s recent quantum update, which could potentially threaten Bitcoin’s security.
Profit-Taking and Quantum Concerns
Crypto trading firm QCP Capital reported that large options players were booking profits as Bitcoin hit $100K.
They were rolling these gains into March 2025 call options, targeting a price range of $130K-$150K.
QCP Capital suggests that this could delay a significant move above $100K in the short term.
The firm also predicted that Bitcoin would remain rangebound for the rest of the December holiday season.
Google’s recent quantum update, Willow, has caused some concern within the crypto community.
Unlike classical computers, quantum computers have the potential to breach the cryptographic algorithms that protect Bitcoin networks and wallets.
Quantum Threats and Solutions
Despite the concerns, some analysts believe that the threat of quantum computing is still decades away from being able to crack Bitcoin’s security.
They point out that Willow only has 105 qubits, while it would take millions of qubits to breach Bitcoin.
This update has, however, emphasized the need for developing quantum-resistant Bitcoin.
Research is currently being conducted to explore the best options, with a potential solution being a soft fork upgrade.
From a technical perspective, Bitcoin also experienced a large price imbalance following the 5th December flash crash.
This typically leads to a retest of these imbalances before the price trend continues.
On the 9th of December, Bitcoin trader Cryp Nuevo predicted a slide to $94K to clear this price imbalance before any upward movement.
His prediction was confirmed just hours later.
At the time of writing, there is a considerable amount of upside liquidity between $98K and $104K.
This could potentially attract higher price action.
Whether the price will climb higher remains to be seen.