Crypto Industry Unprepared for Quantum Threat, Analyst Warns
Market Summary and Key Insights
Bitcoin (BTC) is trading at approximately $106,402.39, reflecting a 0.9% increase after recovering from a weekend decline due to significant ETF outflows and geopolitical concerns. Key points include:
- Bitcoin dropped 2% to $103,748 before rebounding.
- Notable ETF outflows reached $616 million, ending BlackRock's iShares Bitcoin Trust inflow streak.
- Increased tensions from stalled U.S.-China trade talks impacted market sentiment.
- Analysts observe BTC's correlation with Japan's 30-year government bond yields, indicating macroeconomic shifts.
- Bitcoin tests critical support levels near $104,300 amid ongoing volatility.
Quantum Computing Threat to Crypto
Rick Maeda of Presto Research warns that the crypto sector is unprepared for quantum computing threats. Key insights include:
- Economic incentives hinder investment in quantum-resistant technologies.
- Blockchains relying on elliptic curve cryptography (ECC) need proactive measures to mitigate future risks.
- Current quantum systems are not yet capable of compromising ECC but improvements are needed.
- Incremental efforts are essential to enhance defenses against potential quantum threats.
News Highlights
Meta Shareholders Reject Bitcoin Proposal
Meta shareholders overwhelmingly rejected a proposal to invest part of their $72 billion cash reserves into bitcoin, with only 0.08% support. The proposal aimed to hedge inflation risks through bitcoin. Meta shares rose 3.5% to $670.09.
Focus on Stablecoin Regulation
Crypto lobbyists urge U.S. senators to focus on the GENIUS Act, which regulates stablecoin issuers, amid distractions from unrelated amendments. The bill has bipartisan support and analysts estimate a 60-65% chance of becoming law this year.
Market Movements
- BTC: Up 0.9% to $106,402.39 after ETF outflows.
- ETH: Increased 3% to $2,539.04, supported by strong institutional inflows.
- Gold: Rose over 2% to $3,371.40, hitting a three-week high amid dollar weakness.
- Nikkei 225: Gained 0.36% as Asia-Pacific markets advanced.
- S&P 500: U.S. stocks rose 0.4%, ignoring trade tensions.