Bitcoin Drops 10% From Highs Amid Quantum Computing Warnings

HomeNews* Bitcoin dropped nearly 10% from its record high, falling close to $103,000 after reaching $112,000 last week.

• BlackRock warned that advances in quantum computing could threaten bitcoin’s encryption and overall security.
• A new Google research paper suggests breaking bitcoin’s encryption could be possible sooner than previously estimated.
• Large amounts of funds remain parked in money market instruments, making the market sensitive to changes in risk sentiment.
• Upcoming U.S. economic data and policy moves could drive further volatility in the bitcoin and broader crypto markets. Bitcoin’s price has fallen nearly 10% since reaching an all-time high last week, dropping from about $112,000 to just above $103,000. The decline comes amid warnings from BlackRock and new research from Google on the potential threat quantum computing poses to bitcoin’s security.

• Advertisement - A recent paper from Google Quantum AI shows the number of quantum computer qubits—basic units of quantum information—needed to break the cryptography behind bitcoin might be far fewer than previously thought. “This is a 20-fold decrease in the number of qubits from our previous estimate,” wrote Google researcher Craig Gidney, referring to quantum computers’ potential to compromise public-key encryption similar to what bitcoin uses.

Investor Chamath Palihapitiya posted on the social platform X that, given these findings, “the only safe trade are hard assets and, dare I say, Gold.” Analysts at 10x Research noted, “Next week will be critical for both the crypto market,” while suggesting some long-term bitcoin owners may be selling.

Still, several factors could influence where bitcoin’s price heads next. The coming week features major U.S. economic releases, including the monthly jobs report, and the progression of a tax bill in the U.S. Senate. There is also ongoing legal debate related to proposed tariffs.

Market observers highlight the impact of global sentiment. Matt Mena, a strategist at 21Shares, said that with about $7 trillion in money market funds and $2 trillion in fixed income ETFs, a change in investor risk appetite could move significant capital into digital assets. He added, “If bitcoin breaks out of the $105,000 to $110,000 range with conviction, we could see a sharp move to $120,000 and, more importantly, reach our previously year-end price target of $138,500 per bitcoin by the end of the summer.”

Concerns about quantum computing were added to BlackRock’s spot bitcoin ETF risk disclosures. The fund holds an estimated 3% of all bitcoin, worth about $70 billion. According to BlackRock’s regulatory filing, “If quantum computing technology is able to advance […] it could potentially undermine the viability of many of the cryptographic algorithms used across the world’s information technology infrastructure, including the cryptographic algorithms used for digital assets like bitcoin.”

Industry experts have echoed these concerns. David Carvalho, CEO of blockchain company Naoris Protocol, warned, “At this point, no blockchain is ready to withstand a quantum attack when this becomes possible, which could very well be much earlier than 2030.”

• Advertisement - While bitcoin’s recent price surge was supported by Wall Street adoption and interest from high-profile figures, new challenges such as quantum computing risks and uncertain global economic conditions are now contributing to increased volatility.

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