Asia Morning Briefing: Crypto Market Vulnerable to Quantum Threat, Expert Warns

BTC Edges Higher in Asia as ETF Outflows Ease; Macro Correlations Shift Toward Japan

Bitcoin (BTC) began Tuesday’s Asia session with modest gains, trading at $106,402.39, up 0.9% in early hours as markets stabilized following a weekend pullback. The asset had dipped as low as $103,748, pressured by $616 million in spot ETF outflows, notably ending BlackRock’s 31-day inflow streak, and mounting tensions surrounding U.S.–China trade negotiations.

Market observers are turning their attention to a surprising macro development: BTC’s growing alignment with Japan’s 30-year government bond yields. According to strategist Weston Nakamura, this emerging relationship may reflect a broader recalibration of cross-asset linkages, highlighting Japan’s rising influence over global risk pricing—especially as U.S. equity correlations weaken.

From a technical standpoint, Bitcoin is holding key support at $104,300, with traders watching for confirmation above $106,800 to signal a potential breakout.

Quantum Threat Looms Over Crypto; Sector Must Act Early, Analyst Warns

Quantum computing’s potential to disrupt existing blockchain security protocols remains underestimated by most of the crypto industry, according to Rick Maeda of Presto Research. In a recent CoinDesk interview, Maeda cautioned that waiting for quantum computing to reach critical mass before investing in defenses would be a critical error.

“The problem isn’t just technical,” he explained. “It’s economic—there’s no immediate ROI for quantum-resistant infrastructure, so funding is scarce.”

Despite current hardware limitations—today’s systems are operating at just ~10 logical qubits with high error rates—Maeda warns that breakthroughs could come suddenly. His central thesis: quantum readiness must progress in a sustained, linear manner, not as a reactive patch once vulnerabilities are exposed.

Quick Hits: Industry Developments

Meta Shareholders Vote Down Bitcoin Reserve Allocation
A proposal to diversify Meta’s $72B cash reserves into bitcoin was defeated decisively, with just 0.08% support. The motion, sponsored by Strive Asset Management, was intended as a hedge against inflation. Despite its previous Libra stablecoin ambitions, Meta appears cautious in expanding direct crypto exposure.

Stablecoin Bill Faces Senate Distractions
The GENIUS Act, which would establish a framework for regulating stablecoins like USDT and USDC, faces legislative noise as unrelated amendments threaten to dilute its focus. Still, analysts assign a 60–65% chance of passage this year, noting bipartisan support in the Senate Banking Committee.

Markets Summary

• BTC: ▲ 0.9% to $106,402.39 – Recovers from ETF-led drop, holds macro support
• ETH: ▲ 3.0% to $2,539.04 – Strong bounce off $2,500 with institutional interest
• Gold: ▲ 2.1% to $3,371.40 – Safe-haven inflows as dollar weakens
• Nikkei 225: ▲ 0.36% – Markets buoyed by Wall Street momentum
• S&P 500: ▲ 0.4% – Traders shrug off U.S.–China friction