A new Quantum computing chip from Alphabet is being seen by some as a Bitcoin and Nvidia killer.
BTCUSD – Daily Chart
The price of BTC has crossed $100k again, a strong move above the previous highs near $73k. With no previous trading at these levels there may be little selling action. The price can continue higher if news supports the market.
Artificial intelligence has been the market driver over the past year, but quantum is the next level of that interest. Quantum computing is seen to be the next leap in technological advancements, offering more powerful computations. The problem-solving capabilities are beyond the reach of traditional computers and could even crack Bitcoin’s encryption, some believe.
Alphabet’s quantum chip may still be years away from threatening bitcoin, but the technology can also threaten offerings from Nvidia and other chipmakers. Alphabet’s engineers haven’t noted a target data for the arrival of quantum but they hinted at less than 10 years. That could put Nvidia under pressure with its earnings currently priced for around 35 years of earnings.
“We remain convinced $100,000 is not the final milestone,” Bernstein analyst Gautam Chhugani said in a research note on Thursday. “We expect Bitcoin to hit a cycle-high of $200,000 in late 2025”.
Analysts see Donald Trump’s pick of crypto advocate Paul Atkins to chair the Securities and Exchange Commission as positive for the industry as a whole.
Where Bitcoin ends up will depend on flows from retail and institutional investors. Crypto company Bitwise is also expecting $200k in 2025. If the US government proceeds with plans to create a strategic reserve of 1 million Bitcoins, the price could top $500,000 they said.
“The fact that the US is actively considering building a strategic bitcoin reserve will kick off an arms race around the world for governments to buy bitcoin before it’s too late,” the company’s report said.
BTC inflows hit $2bn in one day after the Trump victory and were at $514 million on December 10.
