Bitcoin’s price has fallen nearly 46% from its October peak of approximately $126,100 to around $67,000, sparking debate among experts about the reasons behind this decline. Some investors believe that advancements in quantum computing pose a significant threat to Bitcoin’s cryptographic security. However, others argue that the real causes are capital migration, tightening market liquidity, and economic challenges in mining operations. Prominent Bitcoin developer Matt Corallo stated that fears of quantum computing should not be seen as the primary reason for the price drop. If such a threat were imminent, Ethereum’s price would have performed better, but it has also fallen about 58%, mirroring Bitcoin’s decline.
Currently, Bitcoin’s mining difficulty is increasing, reflecting the network’s power and energy consumption, with fluctuations observed especially after China’s mining ban stabilized the situation. Reduced revenue has pressured miners’ profits, particularly those using expensive electricity, while large operators utilizing cheaper energy, such as in the UAE, are expanding their activities. Additionally, some mining companies have shifted focus from Bitcoin to artificial intelligence and high-performance computing sectors, which demand more investment and energy, indicating Bitcoin’s competition with other technological fields for capital. Bitcoin’s price remains near $67,000 amidst a market sentiment of “extreme fear,” with experts predicting prices will stabilize rather than recover quickly. Upcoming U.S. economic data and Federal Reserve policies may also influence Bitcoin’s future price movements.
Source: bitcoinmagazine
