Dec 10 2024: Bitcoin extended its slide on Tuesday, leading broader cryptocurrency declines as geopolitical tensions and uncertainties around U.S. interest rates weighed on risk sentiment.
The world’s largest cryptocurrency fell 2.6%, trading at $96,870.6 as of 00:38 ET (05:38 GMT). The drop followed profit-taking after Bitcoin’s recent surge past $100,000 last week, with traders locking in gains across most cryptocurrencies.
Geopolitical Tensions Impact Market Sentiment
Global risk appetite waned amid escalating tensions in the Middle East after rebel forces ousted Syrian President Bashar al-Assad. The sell-off also mirrored declines in Wall Street indexes on Monday.
Crypto Market Awaits Trump’s Policy Direction
The crypto market faced headwinds as traders awaited clarity on President-elect Donald Trump’s crypto policy. While optimism had been sparked by his nomination of pro-crypto figures, such as Paul Atkins to replace Gary Gensler as SEC Chair, doubts emerged regarding the extent of regulatory support Trump could offer.
Bitcoin has been trading within a $90,000 to $100,000 range recently, briefly reaching a record high of $103,000 last week.
Quantum Computing Adds Pressure to Crypto Security
Concerns about cryptographic security in crypto markets rose after Google announced a breakthrough in quantum computing. The new technology could potentially compromise the security measures underpinning cryptocurrencies.
Deloitte estimated that approximately $40 billion worth of Bitcoin could be at risk from quantum attacks if such advancements continue.
Altcoins Follow Bitcoin’s Decline
Other major cryptocurrencies also saw significant losses:
- Ether: Dropped 6.1% to $3,702.02.
- XRP: Fell nearly 13% to $2.1672, after earlier gains driven by optimism surrounding the SEC lawsuit against Ripple.
- Solana, Cardano, Polygon: Declined between 7% and 16%.
- DOGE: Slumped 10%.
The broader crypto market mirrored Bitcoin’s bearish sentiment, reflecting heightened concerns about geopolitical developments, regulatory uncertainty, and emerging technological risks.
