Bitcoin Surges Past $68K After Quantum Computing Scare Triggers Selloff

From $60,000 to $68,000 in less than 24 hours. Bitcoin's dramatic recovery Friday morning suggests the crypto market's Thursday night panic may have been premature.

The world's largest cryptocurrency bounced back 13% from its late Thursday crash, climbing above $68,000 in U.S. morning trading. While still down 2% over 24 hours, the swift recovery has crypto-related stocks posting massive gains, with MicroStrategy up 14%, Galaxy Digital surging 15%, and bitcoin miner MARA Holdings climbing 12%.

Saylor's Quantum Gambit

The catalyst for this turnaround? MicroStrategy CEO Michael Saylor's unexpected announcement during Thursday's earnings call. Despite reporting a staggering $14.2 billion fourth-quarter loss, Saylor pledged to lead a "Bitcoin security program" specifically designed to address quantum computing threats.

This wasn't just corporate speak. Quantum computing has emerged as crypto's existential boogeyman - a technology potentially capable of cracking Bitcoin's cryptographic foundations. Some investors have been selling or avoiding Bitcoin entirely, spooked by the possibility that quantum computers could render the network vulnerable.

"Saylor's announcement tells me prices have finally gotten the Bitcoin community to acknowledge and address quantum risk," wrote analyst Quinn Thompson. The market's response suggests investors see this as a credible commitment rather than empty promises.

Technical Stars Aligning

Beyond Saylor's quantum pledge, technical indicators are flashing potential bottom signals. Bitcoin has dropped to levels not seen in 14 months, with the RSI momentum indicator showing deeply oversold conditions.

Paul Howard, director at crypto trading firm Wincent, noted that trading volumes in both Bitcoin and Ethereum have surged to their highest levels in over two years. "It would be odd if we did not see at least some short-term reversion here," he observed.

This combination of extreme oversold conditions and massive volume typically precedes significant bounces, even in bear markets.

Mixed Signals Persist

Not everything's rosy in crypto land. Ethereum remains down 3% and Solana has dropped 5% over 24 hours. The standout performer is XRP, which has climbed 8% to $1.47, bucking the broader market's struggles.

Among crypto stocks, the picture is similarly mixed. While the big names are surging, bitcoin miner-turned-AI company IREN fell 1.8% after disappointing earnings, showing that individual fundamentals still matter.