Crypto Market Crash Wipes $1.7B Amid Quantum Computing Fears

A sharp crypto market correction triggered a staggering $1.7 billion in liquidations over the past 24 hours, as Bitcoin tumbled from above $100,000 to $94,100 and Ethereum fell 8% to $3,800, according to Coinglass.

Liquidations and Altcoin Bloodbath

Of the $1.7B wiped out, $1.5B came from long positions—a sign that bullish traders were caught off guard. Bitcoin has partially rebounded to $97,800, but remains down 2%. Altcoins suffered worse losses, with Ripple (XRP), Dogecoin (DOGE), and Cardano (ADA) plunging 11%, 10%, and 13%, respectively.

Quantum Computing Sparks Panic

The selloff coincides with Google’s unveiling of its ‘Willow’ quantum chip, capable of completing tasks in five minutes that traditional supercomputers would need 10 septillion years to achieve.

Crypto enthusiasts fear such advancements could threaten Bitcoin’s encryption, enabling hackers to breach wallets and exchanges.

“$3.6 trillion of crypto assets could be vulnerable to quantum computers,” a community member warned.

However, experts were quick to calm concerns, explaining that breaking Bitcoin’s encryption requires a quantum computer with 13 million qubits—a far cry from Willow’s current 105 qubits.

“Bitcoin’s cryptography remains SAFU… for now,” said Bitcoin advocate Ben Sigman.

Bhutan Moves $352M in Bitcoin

Adding to market jitters, Bhutan’s government transferred 406 BTC to QCP Capital and $19M worth to an unidentified Binance wallet. Bhutan remains a top Bitcoin holder, with reserves of 11,688 BTC worth over $1.1 billion, mined through its hydroelectric resources.

Past BTC sales by Bhutan have triggered price dips, sparking speculation around the timing of its recent movements.

While the quantum computing breakthrough and Bhutan’s BTC transfers stoked fears, experts agree that Bitcoin’s security remains intact for now. However, combined with market uncertainty, the crypto correction highlights the volatility that continues to define the space.