Asia Morning Briefing: Crypto Industry ‘Unprepared’ For Quantum Threat Says Analyst
Bitcoin (BTC) opened Asia’s trading day at approximately $106,402.39, a slight 0.9% increase following a weekend dip. This decline, attributed to significant outflows from spot Bitcoin ETFs and rising geopolitical uncertainty, saw BTC fall 2% from $105,987 to $103,748. The $616 million in ETF outflows marked the end of BlackRock’s iShares Bitcoin Trust’s 31-day inflow streak, further amplified by stalled U.S.-China trade talks. Interestingly, macro strategist Weston Nakamura highlights an unconventional correlation between BTC and Japan’s 30-year government bond yields, suggesting a potential global macro shift and increasing Japanese influence on cross-asset dynamics. Bitcoin is currently testing crucial support levels near $104,300.
The cryptocurrency industry faces a looming threat from quantum computing, according to Presto Research’s Rick Maeda. He argues that the industry’s lack of preparedness, largely due to the difficulty in monetizing quantum-resistant technology, is a significant risk. Blockchains relying on elliptic curve cryptography (ECC) need immediate, sustained efforts to mitigate future quantum attacks, as waiting until the threat materializes will be too late. While current quantum systems are limited in their capabilities, proactive, incremental improvements to cryptocurrency’s defenses are crucial.
Meta shareholders overwhelmingly rejected a proposal to allocate a portion of the company’s $72 billion in cash reserves to bitcoin, with only 0.08% of votes in favor. The proposal, aiming to hedge against inflation, follows Meta’s previous involvement in crypto projects like the now-defunct Libra stablecoin. Despite this rejection, Meta’s shares rose 3.5% on Monday.
Crypto lobbyists are urging the U.S. Senate to focus on the GENIUS Act, a bill regulating stablecoin issuers, amidst potential distractions from unrelated amendments. The bill, which enjoys bipartisan support, aims to regulate stablecoins like Tether’s USDT and Circle’s USDC. Analysts give the bill a 60-65% chance of passage this year, although House approval remains necessary.
Elsewhere, Ethereum (ETH) saw a 3% increase to $2,539.04, driven by institutional inflows and buying around the $2,500 mark. Gold surged over 2% to $3,371.40, and the S&P 500 gained 0.4%. The Ethereum Foundation recently laid off some R&D staff as part of a restructuring effort.
