Key Points
- Bitcoin’s price fell to $94.1K due to profit-taking and concerns about Google’s quantum update.
- Despite the drop, some predict a range-bound holiday season and downplay the short-term impact of quantum computing on Bitcoin’s security.
On the 9th of December, Bitcoin (BTC) experienced a price drop to $94.1K.
Market observers attributed this to a rise in profit-taking and apprehensions about Google’s quantum update.
Profit-Taking and Quantum Worries
Crypto trading firm QCP Capital reported that large options players took profit when BTC reached $100K.
They then redirected these gains towards March 2025 call options, targeting between $130K and $150K.
This could potentially delay a significant rise above $100K in the short term.
QCP Capital also suggested that Bitcoin might remain within a certain range for the remainder of the December holiday.
The market sentiment could also be influenced by Google’s quantum breakthrough, known as Willow, which poses a potential threat to Bitcoin’s encryption.
Unlike traditional computers, quantum computers can potentially breach the cryptographic algorithms that protect BTC networks and wallets.
Community Reactions and Predictions
The crypto community reacted to Google’s update with some expressing concerns about Bitcoin’s security.
However, others downplayed the immediate impact of quantum computing, stating that the technology is still decades away from cracking Bitcoin’s security.
Some pointed out that Willow only has 105 qubits, while it would require millions of qubits to breach Bitcoin.
From a technical perspective, Bitcoin also had a significant price imbalance following the flash crash on the 5th of December.
On the 9th of December, BTC trader Cryp Nuevo predicted a slide to $94K to clear this price imbalance before any upward move.
His prediction was confirmed a few hours later.
As of now, there is a substantial amount of upside liquidity between $98K and $104K, which could potentially attract higher price action.
