Bitcoin price hovered at $68,021 on Tuesday, following a week of consolidation below the $70k level. Ethereum is trading around $1,970. Despite the wider crypto market experienced some positive growth last week, the total market cap increased 0.35%, now estimated at 2.35 trillion.
In the meantime, Willy Woo has cautioned about the possible dangers that quantum computing represents to the security of Bitcoin.
Willy Woo Warns Quantum Risk Threatens Bitcoin’s Gold Advantage
On-chain analyst Willy Woo has sounded the alarm about the growing risk that quantum computing could erode Bitcoin’s edge over gold.
Woo maintained that markets are beginning to take into consideration the threat of a “Q Day. This name is used to describe the point at which quantum computers can crack existing public-key encryptions.
Such an innovation can reintroduce some 4 million Bitcoin, which is estimated to have been lost out of circulation, since unreachable private keys, into circulation. These misplaced coins are accumulated in addresses that have an open public key that may be intercepted using quantum technology.
Woo stated that this is already getting factored into the price of Bitcoin, with a structural discount becoming apparent against gold.
He further observed that the Bitcoin network could use a hard fork to freeze these coins. Nonetheless, this action would spark a lot of controversy insofar as it would mean that Bitcoin would have its fungibility and immutability.
Woo approximated that the recall of these coins may equate to about eight years of Bitcoin amassing by companies.
Key Crypto Events To Watch Ahead
The market is closely watching the Federal Reserve’s meeting minutes, set for release this Wednesday. The minutes will provide important details on how the central bank manages interest rates and inflation.
The released minutes of the meeting owed to the release three weeks after the FOMC meeting, give an insight into the internal discussions of the Fed. They target the economic situation, employment growth, and inflation issues.
These pieces of information frequently cause market trends, particularly in the crypto sector. Dovish minutes, which indicate the potential of a rate reduction, are likely to increase the price of crypto.
There are some major weekly crypto market calendars to watch. These are the ADP employment update, the retail sales information, and the December PCE inflation report. These reports will also ascertain the market mood and the potential fluctuations of the prices.
Bitcoin Price Prediction: Is BTC Set for a Breakout or a Pullback?
As of writing, the BTC price stands at about $68,454 with a minor rise of +0.7%.
The MACD indicator shows a negative trend, and this may show a short-term downturn. This is also supported by the histogram since the bars appear red, which depicts a bearish movement. The MACD line, however, crossing over the signal line might indicate a potential short-term reversal in case the momentum changes.
The RSI is 43, which is close to the neutral zone, indicating that Bitcoin is not overbought or oversold.
The long-term Bitcoin forecast is on the verge of important target levels of $75,000 and $65,000 to monitor. Any move above $75,000 could be an indicator of an upward trend, whereas a fall below $65,000 could be an indicator of a downward trend.
To sum up, Bitcoin price holds its ground as the crypto market expands slowly. The security of Bitcoin is also a cause of concern in light of the warning given by Willy Woo on the issue of quantum computing. Future market moods will be determined by future economic reports and Federal Reserve minutes.