Bitcoin (BTC) has declined by 2.0% this week
to $97,990, retreating to the midpoint of its $90,000–100,000 trading range
after recently surpassing the psychological $100,000 level. The pullback
highlights growing investor uncertainty, exacerbated by profit-taking from
long-term miners selling at elevated levels. This volatility reflects the
market’s heightened sensitivity to negative developments. Alphabet’s announcement
of its next-generation quantum computer, "Willow," intensified market
jitters. Willow reportedly solved a problem in five minutes that would take
classical supercomputers over ten septillion years—longer than the age of the
universe. While experts emphasize that quantum computing power must increase by
a millionfold to pose a realistic threat to Bitcoin’s blockchain, BTC prices
still fell 6.1% on the news, underscoring the market’s fragile sentiment.
Adding to the pressure, Microsoft shareholders
rejected a resolution to allocate corporate reserves in Bitcoin. The proposal,
introduced by the National Center for Public Policy Research (NCPPR), sought to
position Bitcoin as a value-enhancing diversification tool for shareholders.
This decision led to an additional 2.7% decline in Bitcoin prices, reflecting
cautious attitudes toward broader crypto adoption in corporate treasuries.
Despite these short-term challenges, institutional interest in Bitcoin remains
strong. BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC Bitcoin-ETFs
have reported sustained net capital inflows. Although inflows slowed to $885.31
million last week from $1.2 billion and $2.29 billion in prior weeks, the
consistent demand suggests that large investors remain optimistic. Dips are
being actively bought, indicating confidence in Bitcoin’s medium-term
prospects.
A short-term correction to $88,000–90,000
could establish a healthier foundation for the next rally, potentially shaking
out overleveraged traders. A steeper decline might trigger capitulation among
marginal participants, which often precedes renewed bullish momentum. In the
longer term, the potential introduction of U.S. crypto reserves in Bitcoin
could serve as a significant catalyst, with consensus projections targeting
$300,000 per coin.