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<p>The cryptocurrency market faced a sharp decline in the past 24 hours, leaving traders and investors on edge. Bitcoin (BTC), the largest digital asset by market cap, plummeted over 6%, hitting a daily low of around $94,725. The sudden drop sent shockwaves through the altcoin market, with the TOTAL2 index—tracking altcoin performance—shedding more than 15%, wiping out $258 billion in value.</p>   
<p>As market capitalization fell over 7%, settling at $3.58 trillion, uncertainty gripped the industry. Yet, amid the chaos, a few outliers like Baby DogeCoin ($BABYDOGE) and Movement (MOVE) stood resilient, posting unexpected gains. </p>   
<p>What triggered this sharp selloff, and is the worst behind us?</p>   
<h2 class="wp-block-heading" id="h-what-caused-the-crypto-market-crash">What Caused the Crypto Market Crash?</h2>   
<h3 class="wp-block-heading" id="h-google-s-quantum-chip-stirs-bitcoin-security-concerns"><strong>Google’s Quantum Chip Stirs Bitcoin Security Concerns</strong></h3>   
<p><a href="https://x.com/google/status/1866162390879834553?s=46" target="_blank" rel="noreferrer noopener">Google’s announcement of <em>Willow</em></a>, its cutting-edge quantum chip, caused widespread concern in the crypto world. Willow is capable of completing calculations in under five minutes that would take the fastest supercomputers 10 septillion years—a period longer than the universe's known age.</p>   
<p>While this marks a milestone for technology, it raised alarms about Bitcoin’s cryptographic security. Bitcoin relies on difficulty adjustments for mining, which typically take longer than five minutes, theoretically making it vulnerable to quantum breakthroughs.</p>   
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<p>However, experts reassured investors that Bitcoin could counter such threats by upgrading its security protocols and recalibrating its difficulty settings.</p>   
<h3 class="wp-block-heading" id="h-bitcoin-transactions-by-key-players-raise-doubts"><strong>Bitcoin Transactions by Key Players Raise Doubts</strong></h3>   
<p>Market sentiment weakened further after reports showed the <a href="https://coinpedia.org/news/royal-government-of-bhutan-shifts-406-btc-40m-to-qcp-capital-still-holds-1-2b-in-btc/" target="_blank" rel="noreferrer noopener">Royal Government of Bhutan</a> transferring 406 Bitcoins—worth about $40 million—to QCP Capital. With Bhutan holding over 11,000 Bitcoins, such moves could create fears of sustained selling pressure.</p>   
<p>Meanwhile, speculation arose that El Salvador might soften its <a href="https://coinpedia.org/crypto-live-news/el-salvadors-bitcoin-gains-hit-333m-as-btc-crosses-100k/" target="_blank" rel="noreferrer noopener">pro-Bitcoin stance</a> to secure a $1.3 billion loan deal with the International Monetary Fund (IMF), adding more uncertainty to the market.</p>   
<h3 class="wp-block-heading" id="h-leveraged-traders-face-heavy-losses"><strong>Leveraged Traders Face Heavy Losses</strong></h3>   
<p>The selloff intensified as <a href="https://coinpedia.org/news/bitcoin-buy-time-whale-acquires-183-million-worth-of-btc/" target="_blank" rel="noreferrer noopener">liquidations surged </a>in the leveraged trading market. Over 582,000 traders were liquidated in the past 24 hours, resulting in total losses of more than $1.7 billion. Long traders were hit hardest, accounting for $1.5 billion of these liquidations, which triggered a significant long squeeze.</p>   
<p>The total open interest (OI) in crypto markets also dropped, falling from $138 billion to around $123 billion as speculative activity cooled.</p>   [post_titles_links postid="391194"]   
<h2 class="wp-block-heading" id="h-there-s-still-some-hope">There's Still Some Hope </h2>   
<p>Despite the market turmoil, institutional investors remained active in <a href="https://coinpedia.org/news/microstrategys-bought-another-stash-of-bitcoin-purchase-now-holds-423650-btc/" target="_blank" rel="noreferrer noopener">accumulating Bitcoin</a>. The total Bitcoin supply on centralized exchanges decreased by over 10,000 BTC, bringing it to approximately 2.25 million.</p>   
<p>Notably, BlackRock’s IBIT led U.S. spot Bitcoin ETF issuers in accumulating BTC, signaling confidence in a potential rebound and renewed bullish momentum in the near future.</p>   [article_inside_subscriber_shortcode title="Never Miss a Beat in the Crypto World!" description="Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more." category_name="News" category_id="6"]   
<p><strong>The crypto world may have stumbled today, but history shows it has a way of bouncing back stronger.</strong></p>   
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>   
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1733810690604">
  <strong class="schema-faq-question">Why is Bitcoin down today?</strong> 
  <p class="schema-faq-answer">Bitcoin dropped over 6% due to quantum computing fears, liquidations, and major selloffs from entities like Bhutan, impacting market sentiment.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1733810711051">
  <strong class="schema-faq-question">Can quantum computers affect Bitcoin security?</strong> 
  <p class="schema-faq-answer">Quantum computers like Google's Willow pose theoretical risks, but Bitcoin can adapt with cryptographic upgrades and difficulty adjustments.</p> 
 </div> 
 <div class="schema-faq-section" id="faq-question-1733810766538">
  <strong class="schema-faq-question"><strong>How did Bhutan impact Bitcoin prices?</strong></strong> 
  <p class="schema-faq-answer">Bhutan’s transfer of 406 BTC to QCP Capital raised bearish sentiment, signaling potential future sell pressure from large holders.</p> 
 </div> 
</div>

Why Is Crypto Market Down Today? Bitcoin Dips 6%, Altcoins Wipe Out $258Bn

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