Quantum Computing Fears Surge as Bitcoin Price Slides

Key Insights:

• Bitcoin faces potential downward pressure amid rising quantum computing risk awareness.
• Willy Woo estimates a 75% chance that lost coins will not be frozen by a protocol hard fork.
• Samson Mow views quantum threats as an opportunity for smart investors to accumulate BTC at current lows.

Google search data has revealed rising interest in searches for Quantum Computing Bitcoin (BTC). This move coincided with the BTC price reaching a recent high. Amid the ongoing Bitcoin quantum threats, an analyst has forecasted the circulation of lost coins.

Google’s Spike in Bitcoin Quantum Computing Search

Charles Edwards, founder of Capriole Investments, discussed the potential quantum computing threat to the BTC price movements.

The Capriole founder pointed out that search volume for “Quantum Computing Bitcoin” peaked when Bitcoin recently hit new highs. This suggests heightened fear-driven curiosity about whether quantum computers could break the Bitcoin cryptography.

Once the peak hype or perceived fear passed, investors began selling their Bitcoin stash to avoid potential quantum-related downside.

To Edwards, this derisking is a leading indicator of the subsequent price drop. In other words, the fading of peak fear did not lead to a BTC price rally. Rather, the prior overestimation of near-term risk prompted selling pressure.

Edwards directly attributed part of the recent BTC price decline to this quantum fear narrative. When fear was high, it contributed to upside, but the derisking phase amplified the downside movement.

He further noted that even as hype peaks faded, search interest in the topic has been increasing over time. This indicates growing, sustained awareness and concern rather than just temporary FUD.

Nevertheless, Edwards views the rising baseline attention as positive because it is pressuring key players to address the issue seriously. He thinks efforts like those from the Bitcoin community, Strategy, and the Ethereum Foundation could address future transactions.

Odds of a Bitcoin Quantum Threat and Coin Loss

Willy Woo, a well-known on-chain analyst, also commented on emerging awareness of quantum computing risks to Bitcoin.

He shared a bearish take on Bitcoin’s current valuation relative to gold, tying it directly to the quantum computing risks. He highlighted a shift in market dynamics and warned against overly optimistic views.

Woo referred to the historical Bitcoin-to-gold ratio, which had been trending upward for about 12 years. This ratio measures how many ounces of gold one Bitcoin can buy.

In a normal bull market scenario, Bitcoin should outperform gold due to its scarcity, network effects, and adoption growth. However, the trend has reversed, with Bitcoin underperforming gold, as visible in a chart attached by Woo.

The turning point, according to Woo, is the growing awareness of quantum computing’s potential threat to Bitcoin security.

Woo also acknowledged that Bitcoin could upgrade its protocol to use quantum-resistant signatures. Still, he noted that this would not retroactively protect lost coins, estimated at around 4 million BTC.

Even if quantum recovery happens, Woo estimates a 75% chance that lost coins will not be frozen by a protocol hard fork. According to him, the potential influx of 4 million lost coins is equivalent to roughly 8 years of similar institutional accumulation at current rates.

Samson Mow Dismisses Quantum Threat to BTC

While sharing an optimistic take, Samson Mow, CEO of JAN3, dismissed the quantum computing fear narrative weighing on Bitcoin price. Mow called the current quantum concerns overblown. He sees it as a massive opportunity for knowledgeable Bitcoin holders to accumulate cheaply from panicked sellers.

Essentially, Mow predicted that the current wave of quantum selling will be one of the final such easy opportunities before an imminent Bitcoin rally.

At press time, BTC is traded at $68,725, down 2.38% over the past 24 hours. The top coin also declined on the weekly and monthly timeframes, while daily trading volume plunged 16.3%.

Traders tracked liquidation clusters over the weekend that revealed $4.34 billion in short positions would unwind on a 10% upside move.

The post Quantum Computing Fears Surge as Bitcoin Price Slides appeared first on The Coin Republic.