"While there's plenty to be concerned about as Bitcoin prices take a few steps lower following the bloodbath witnessed in the precious metal markets (gold and silver imploded last Friday in a vicious fashion), I do think that the case for "digital gold" might not strength by all too much, even if the gold markets crank up the volatility by several notches."
"Digital gold is fading just like real gold is, but for how long? Bitcoin is a risk-on play in an environment where even the supposed safe haven "risk-off" play, like gold, is starting to come in. Add the gigantic question market of quantum computing and the impact on cryptography into the equation, and I'm in no rush to be a buyer of Bitcoin or any crypto-related equities at this juncture."
"Personally, it's less about the terrifying technical picture and more to do with uncertainties relating to potential disruptions from the advancement of quantum computing. Of course, quantum might not mean that it's curtains for the crypto trade at some point in the future. However, there is a lot of uncertainty here, and not everybody is going to have the answers."
Bitcoin and other cryptocurrencies have not meaningfully rallied despite recent turmoil in precious metals. Gold and silver experienced a violent one-day collapse, producing sharp volatility after sizable prior gains. The drop in precious metals has not translated into gains for Bitcoin so far, and cryptocurrencies risk following gold and silver lower. Elevated concerns about equities and a potential AI bubble create additional downside pressure for risk assets including Bitcoin. Quantum computing advances introduce uncertainty about cryptography and potential disruptions to crypto networks. Given these risks and market anxieties, caution and preparedness are prudent for investors.
Read at 24/7 Wall St.
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