Published December 10, 2024
The cryptocurrency market faced extreme turbulence over the past 24 hours, witnessing $1.7 billion in liquidations (approximately RM7.23 billion). According to reports, this volatility affected over 580,000 users, surpassing the scale of the infamous 2020 "312 Flash Crash."
Key Events Driving the Sell-Off
Bitcoin’s Rollercoaster:
- Bitcoin surged past $100,000 (RM442,700) earlier this week amid speculation that former U.S. President Donald Trump’s media company, TMTG, might acquire crypto platform Bakkt.
- By December 10, it plummeted to $94,000 (RM416,120), dragging other cryptocurrencies down.
Quantum Computing Fears:
- Google’s new quantum chip "Willow"—capable of performing computations in 5 minutes that would take supercomputers 1 billion years—sparked concerns about Bitcoin’s encryption vulnerability.
- Experts note current quantum technology (105 qubits) remains far from breaching Bitcoin’s security (requiring ~13 million qubits).
Government Bitcoin Moves:
- Bhutan’s government transferred 406 BTC to Singapore’s QCP Capital, followed by a $19 million (RM84.12 million) shift to Binance.
- Bhutan holds 11,688 BTC, ranking among the top five government-owned reserves globally.
Market Impact and Analysis
- Liquidation Scale: Over 580,000 positions liquidated, totaling $1.76 billion (RM77.9 billion).
- Cause Uncertainty: Analysts attribute the drop to quantum computing news and large-scale BTC transactions by nation-states.
FAQs
Q: Is Bitcoin’s encryption at immediate risk from quantum computers?
A: No. Current quantum chips lack the qubit capacity (13 million needed) to break Bitcoin’s SHA-256 encryption.
Q: How did Bhutan’s Bitcoin sales affect the market?
A: November’s sell-off of 367 BTC pushed prices below $90,000; recent transfers exacerbated volatility.
Q: Should investors worry about future quantum threats?
A: While theoretical, practical risks are decades away. Developers are already exploring quantum-resistant blockchains.
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Key Takeaways
- Volatility triggers: Political speculation, quantum advancements, and institutional trades.
- Holdings alert: Governments like Bhutan wield significant influence via large BTC reserves.
- Long-term outlook: Quantum-proofing crypto remains a priority for future protocol upgrades.
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Note: All financial figures are approximate based on exchange rates at publication time.