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Construction Begins on Quantum Facility Capable of Breaking Bitcoin

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Crypto Breaking News

The quantum computing race is edging closer to a commercially viable milestone, with PsiQuantum revealing progress toward a facility that could house a million qubits. The company, which has tied its plans to a collaboration with Nvidia, says the ambitious Chicago site will rely on advanced error-tolerant architectures to deliver usable quantum power at scale. In parallel, the crypto community remains deeply engaged in the implications for Bitcoin’s security, a debate that has intensified as quantum research advances and real-world milestones creep closer to feasibility.

Key takeaways

  • PsiQuantum is moving toward a 1-million-qubit facility described as capable of powering commercially useful quantum computation, backed by a $1 billion fundraising round announced in September and a collaboration with Nvidia.
  • A construction update showed 500 tons of steel erected in six days for the Chicago site, underscoring the rapid pace of on-site development.
  • The crypto community is split on risk: some warn quantum breakthroughs could threaten Bitcoin’s cryptography, while others expect the threat to remain distant, potentially a decade or more away.
  • Analyses and statements emphasize that only a small portion of Bitcoin addresses would be susceptible today, with broader resistance possible through post-quantum upgrades and other safeguards.
  • Key technical benchmarks frame the discussion: preliminary estimates suggest far more qubits than needed to break current cryptography, but practical, scalable quantum systems remain the central hurdle.

Tickers mentioned: $BTC

Sentiment: Neutral

Price impact: Neutral. The article frames potential quantum risk as a broad strategic consideration with limited near-term price signals.

Market context: Quantum progress is unfolding amid a broader crypto market focus on security, post-quantum readiness, and regulatory considerations shaping risk sentiment and investment flows.

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Why it matters

The convergence of quantum computing and crypto security is more than a theoretical concern. If large-scale, fault-tolerant quantum devices become viable, the cryptographic foundations underpinning much of today’s digital assets could face fundamental redesigns. The Bitcoin network, which relies on elliptic-curve signatures, would be the most visible test bed for resilience in the face of quantum threats. In 2024, researchers and industry players have intensified discussions about preemptive upgrades, including hard forks and post-quantum cryptographic standards, as a means of safeguarding long-term security without interrupting existing operations.

PsiQuantum’s latest milestones illustrate the industrial-scale ambitions of quantum developers. The Chicago facility, designed to host one million qubits, is emblematic of the sector’s transition from lab-scale experiments to facilities that could underpin commercial computing for AI, simulation, and optimization workloads. A project of this magnitude hinges on both hardware breakthroughs—error correction, qubit coherence, scalable manufacturing—and software ecosystems capable of harnessing quantum advantage in practical use cases. The $1 billion fundraising and the Nvidia collaboration signal a broad, multi-industry push to de-risk the path to practical quantum advantage, even as critics note that true utility remains some years away.

From a crypto-security perspective, the debate has evolved beyond “if” to “when.” Some Bitcoin proponents argue a quantum-capable attacker could eventually compromise keys and signatures, potentially undermining the integrity of holdings and transactions. Others, including prominent voices in the ecosystem, emphasize that current cryptographic schemes can be fortified through a combination of longer-term keying practices and post-quantum cryptography, reducing the immediacy of risk. A widely cited line of reasoning holds that even if a quantum computer could break certain cryptographic keys, the actual volume of affected funds might be limited, given the distribution of private keys across the network and the ongoing movement toward more secure standards.

Academic and industry analyses also illustrate that the number of qubits needed to break modern cryptography is a moving target. A recent preprint suggested that cracking 2048-bit keys would require on the order of 100,000 qubits, while Bitcoin relies on significantly smaller 256-bit keys in its most widely used schemes. The contrast underscores both the promise and the uncertainty of leveraging quantum capabilities for cryptanalytic purposes. The scale and error-correction requirements for a practical attack remain substantial, and much of the crypto community views rapid, decisive “quantum bursts” as a longer horizon phenomenon rather than an immediate crisis.

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Beyond the security implications, the quantum discourse intersects with broader tech policy and infrastructure planning. The industry’s attention to post-quantum resilience is feeding into discussions about upgrade paths, governance, and the choreography of ecosystem-wide transitions—whether through protocol-level changes, new cryptographic standards, or multi-year roadmaps to migrate away from vulnerable primitives. The ethical and operational challenges of such migrations—including compatibility with existing wallets, exchanges, and custodians—add layers of complexity to an already evolving landscape.

In public statements, PsiQuantum has stressed that it has no plans to exploit quantum capabilities to extract private keys from public ones. Co-founder Terry Rudolph reiterated at a Bitcoin-focused quantum summit that the company’s mission centers on building reliable quantum hardware and software, not on weaponizing cryptographic breaks. This distinction is important for framing the broader industry’s stance: while the threat is acknowledged, the path to actionable security solutions is a collaborative, proactive process rather than a single, dramatic inevitability.

Within the investment and research communities, assessments like those from CoinShares have suggested that even a quantum breakthrough would not instantly destabilize Bitcoin. They estimated that a relatively small subset of the total Bitcoin supply—roughly 10,230 BTC—would be at “quantum-vulnerable” addresses, which, at prevailing prices, could be managed through routine trading and standard risk controls. Such figures reinforce the view that the market’s immediate reaction to quantum news would likely be measured, with systemic safeguards and hedging strategies mitigating abrupt price shocks.

What to watch next

  • Milestones for PsiQuantum’s Chicago facility: timelines for qubit generations, error correction performance, and integration with Nvidia’s hardware stack.
  • Advancements in post-quantum cryptography standards and standardized migration plans for Bitcoin and other major networks.
  • Regulatory and governance developments around crypto security, including any formal endorsements or requirements for post-quantum readiness.
  • New research clarifying the practical qubit counts needed to threaten current cryptography, and whether optimistic estimates translate to real-world risk.
  • Public disclosures from major exchanges and wallet providers about their preparedness for quantum-era threats and planned upgrade pathways.

Sources & verification

  • PsiQuantum’s fundraising and Nvidia collaboration announcements
  • Public posts by PsiQuantum co-founder Peter Shadbolt about the Chicago site and steel construction
  • Official statements from PsiQuantum regarding non-use of quantum tools to derive private keys
  • CoinShares’ February research on quantum risk to Bitcoin
  • ArXiv preprint discussing qubit requirements to break various cryptographic standards

Quantum ambition tests crypto’s future guardrails

The case of PsiQuantum illustrates a defining moment for the crypto ecosystem: a single project’s trajectory toward a million-qubit capability is forging the boundary between theoretical threat and practical reality. The Chicago facility, described as capable of hosting a million qubits and powered by a plan that includes hundreds of tons of steel and a substantial funding package, embodies a new kind of industrial ambition. If realized, it would mark a leap from demonstrations in laboratory environments to a platform that can sustain complex computations at scale—an essential step for applications in AI, materials science, and optimization that quantum machines promise to accelerate.

Yet the same development timeline that excites researchers also intensifies crypto-security debates. The Bitcoin network, by design, relies on cryptographic primitives that must withstand not only current attack methods but also those that quantum machines might enable in the future. The cornerstone question—when could a sufficiently powerful quantum computer emerge to threaten private keys—drives ongoing discussions about potential fork strategies, cryptographic upgrades, and the transitional work needed to preserve user funds without disrupting network operation.

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Industry observers emphasize that while the mathematical potential of quantum attacks is real, the practical path from theory to exploitation remains riddled with engineering hurdles. The demand for robust error correction, high-fidelity qubits, scalable control systems, and fault-tolerant software stacks creates a gulf between today’s research devices and a weaponized quantum infrastructure. In this sense, PsiQuantum’s progress is a reminder that the crypto security debate is less about overnight collapse and more about sustained vigilance, iterative upgrades, and cross-disciplinary collaboration among hardware developers, cryptographers, and policy makers.

As posture and preparedness become part of routine risk management, the crypto community’s emphasis on post-quantum resilience—whether through hybrid cryptographic schemes, larger key sizes, or forward-looking migration plans—will continue to shape investor sentiment and infrastructure decisions. The debate is not only about Bitcoin’s long-term security but also about how the wider financial system adapts to a quantum-enabled future. If the next few years deliver measurable progress toward scalable, reliable quantum systems, the industry could begin to operationalize safeguards well before any exploitation materializes, translating research milestones into practical risk management and clearer governance pathways.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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How to Optimize Company Operational Costs: A Manual on Modern Payment Ecosystems

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

Recent business landscape shifts have forced companies to rethink financial management. Remote work, global teams, scattered suppliers — all demand fast, cheap, transparent settlements. Traditional banking works, sure, but often feels like shipping packages by postal carriage in the drone era. That’s why businesses increasingly seek alternatives enabling settlements without intermediaries and currency conversions within minutes.

This piece isn’t about financial miracles or tech wonders. Rather, it’s about building smart payment infrastructure, cutting fees, speeding operations while staying legally compliant. We’ll examine real tools (from classic methods to cutting-edge solutions) and identify where hidden costs lurk.

Anatomy of Corporate Payment Expenses

When Airbnb was gaining momentum, the company faced a challenge: paying hosts across 190+ countries. Bank transfers took 3–7% commission plus several days. The solution became a proprietary payment system — a path later echoed by modern crypto solutions for business, though not every company can afford or justify such investment.

Typical cost structure looks like this: payment system fees (1.5-3.5%), currency conversion (another 2-4% on unfavorable rates), interbank charges ($15 to $50 per SWIFT), internal processing costs (accounting salaries, software). Annually, an average company with €10M turnover might spend up to €350K just on transactional expenses.

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Stripe published a 2023 study showing businesses underestimate real payment costs by 40-60%. Hidden expenses include chargebacks, fraud, human error during manual entry, cash flow delays. One mistaken $100K payment can paralyze a department for a week.

Classic Banking: Where Money Gets Lost

Picture a Polish IT company paying contractors in the US, India, and Portugal. Through SWIFT, transfers take 3-5 days, passing through 2-3 correspondent banks, each taking $25-40. Exchange rates set by banks with their own markup. Result: from $5,000 sent, the recipient gets $4,820. The rest vanishes in fees.

An alternative — systems like Wise (formerly TransferWise) — use local accounts to simulate international transfers. Instead of physically moving money across borders, the company sends zloty to Wise’s Polish account, while the recipient gets dollars from their US account. Fees drop to 0.4-1%, timing to one day.

Revolut Business went further, offering multi-currency accounts holding 28 currencies simultaneously. For companies with constant multi-currency settlements, this means buying euros or dollars during favorable rates, not when payment’s due.

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Yet classic systems have limits. Payments to certain countries (Argentina, Nigeria, partially Turkey) remain complicated due to currency controls. Weekends and holidays paralyze SWIFT. Most importantly, even modern neobanks still operate within fiat system limitations.

Cryptocurrency Rails: When Speed Matters

When Tesla announced accepting Bitcoin, that was more PR than business strategy. But there are spheres where cryptocurrencies solved real pain points. GameStop launched an NFT marketplace in 2022 not for hype, but to monetize digital assets without intermediaries.

Practical applications run deeper than they appear. Companies use stablecoins (USDT, USDC) for rapid international settlements. Transferring $100K in USDC between Berlin and Toronto takes 15 minutes and costs $2-5, regardless of amount. Particularly relevant for e-commerce: stores can accept payments globally without configuring local payment gateways in each country.

Ripple (XRP) was specifically created for banks — JPMorgan, Santander and others test it for interbank settlements. Settlement speed: 3-5 seconds versus 3-5 days with SWIFT, fees: fractions of a cent. Mass adoption hasn’t happened yet due to regulatory uncertainty.

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Businesses need to understand: cryptocurrencies aren’t fiat money replacements, but additional tools. Bitcoin or Ethereum volatility makes them unsuitable for daily settlements without instant conversion. Yet for payments to freelancers in countries with limited banking (Venezuela, Zimbabwe), sometimes it’s the only option.

Multi-Chain Solutions and Their Role

Previously, transferring between different blockchains was a quest: exchange Bitcoin for Ethereum through an exchange, withdraw to wallet, wait for confirmations. Modern cross-chain crypto swaps like those offered by LetsExchange have automated this process, allowing direct asset exchanges between different networks without centralized intermediaries.

Thorchain, Cosmos, and Polkadot built infrastructure for blockchain interaction. Practical business benefit: accept payments in one cryptocurrency, make payouts in another, optimizing fees. For instance, receive USDT on Tron network (fee $1), swap to USDC on Polygon (fee $0.01), and withdraw through Ethereum when gas is cheaper.

Uniswap V3 allows companies to independently provide liquidity and earn from exchange commissions. Some fintechs use this as an additional revenue source: account balances work instead of just sitting idle.

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Important nuance — regulatory. The European MiCA (Markets in Crypto-Assets) will take full effect from late 2024, establishing clear rules for crypto business. Companies should consult lawyers before implementing crypto products.

Automation and API Integrations

Shopify processes billions annually, and the key to efficiency is complete automation. Each payment automatically reconciles with invoices, splits between seller and platform, reserves for possible returns. Human intervention only occurs when problems arise.

Modern payment gateways provide APIs for integration with ERP systems (SAP, Oracle), CRM (Salesforce), and accounting (QuickBooks, Xero). This eliminates manual data entry — the main error source. When a client pays an invoice, the record automatically enters accounting, updates inventory, triggers shipping processes.

Plaid built an entire business on connecting financial systems. Through their API, apps can check balances, initiate payments, reconcile transactions without logging into each bank separately. For companies with dozens of accounts across different banks, this proves critical.

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Artificial intelligence began analyzing payment patterns. Algorithms detect anomalies (unexpected large payments, new recipients), warn about possible fraud, forecast cash flow. Visa and Mastercard use ML models to block fraudulent transactions before completion.

Geographic Peculiarities and Local Methods

What works in the US can fail in Asia. WeChat Pay and Alipay control 94% of China’s online payment market. Western companies entering the Chinese market must integrate these systems, though they fundamentally differ from familiar card payments.

Latin America lives on Pix (Brazil) and Mercado Pago (Argentina, Mexico). Pix — a state instant transfer system launched by Brazil’s Central Bank in 2020. Within three years, 140+ million users registered. Transactions are free, instant, work 24/7. For business, this means zero fees on receiving payments.

Africa built a unique mobile money ecosystem. M-Pesa (Kenya, Tanzania) processes more transactions than Western Union worldwide. People pay utilities, receive salaries, take microloans — all through SMS, without bank accounts. International companies adapt systems to such realities.

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Even within Europe, differences are significant. Germans dislike credit cards, preferring SEPA transfers and cash. Netherlands lives on iDEAL (direct bank payments). Scandinavia nearly abandoned cash. Global strategy must account for local specifics.

Security and Compliance: Invisible Costs

Equifax lost data on 147 million clients in 2017 through an unpatched vulnerability. Compensation cost $1.4 billion. Security investments seem like expenses until you become a hack victim.

PCI DSS (Payment Card Industry Data Security Standard) — minimum requirements for companies processing card data. Certification costs $5K to $500K depending on volumes. But the alternative is worse: data breach fines reach $100K plus card acceptance bans.

KYC (Know Your Customer) and AML (Anti-Money Laundering) — not just bureaucracy. For violations, the European Banking Authority fines millions of euros. HSBC paid $1.9 billion in 2012 for AML requirement breaches. Compliance automation through services like Onfido or Jumio saves money long-term.

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Two-factor authentication, biometrics, card data tokenization — standards that became cheaper in recent years. Google Authenticator is free but reduces hack risk by 96%. Tokenization replaces real card numbers with one-time codes — if intercepted, they’re worthless.

Practical Steps Toward Optimization

Auditing current systems is the first task. How much does each transaction type cost? What’s average speed? How much time does accounting spend on reconciliation? Buffer reduced payment processing time from 40 hours monthly to 2 hours simply by switching from manual transfers to automated systems.

Provider diversification reduces risks. If the main payment gateway crashes (Visa and Mastercard had outages in 2018 and 2022), backup picks up the load. Plus you can switch between providers depending on fees for specific regions.

Fee negotiations work. Payment systems are willing to lower commissions for stable clients with predictable volume. One European marketplace reduced acquiring from 2.8% to 1.9% simply by showing annual statistics and inviting competing offers.

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Team training investments pay off. Finance professionals need to understand the difference between SEPA Instant and SEPA Credit, know when to use cryptocurrencies versus traditional rails. Shopify Academy teaches payment basics for free — such resources are available to everyone.

Future of Payment Systems

Central banks are launching their own digital currencies (CBDC). Bahamian Sand Dollar has operated since 2020, Chinese digital yuan tests in millions of transactions, ECB plans digital euro by 2028. For business, this could mean instant settlements without intermediaries at all — payment goes directly from company account to recipient’s Central Bank account.

Open Banking forces banks to share data through APIs. In the EU, this is already reality thanks to PSD2. Result — apps like Revolut or N26 can show balances from all banks, initiate payments, build analytics. Traditional bank monopoly crumbles.

Quantum computers threaten modern encryption. IBM and Google work on post-quantum cryptography. Companies should monitor developments — in 5-10 years, entire security infrastructure will need updating.

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Embedded finance makes financial services part of non-financial products. Uber doesn’t just call taxis but also credits drivers. Shopify issues business loans to sellers based on sales. Tesla allows buying electric cars on credit without banks. The blurring of lines between fintech and regular business will only intensify.

Cutting Costs Without Disruption

Operational payment costs aren’t fixed. Every company can reduce them by 20-40% without radical changes. An audit, choosing the right tools, and constant optimization suffice. The financial world changes rapidly, but basic principles remain: transparency, speed, security, and reasonable cost. The rest is finding balance between innovation and stability.

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Culper Research shorts Ether, warns of Ethereum ‘death spiral’

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Culper Research shorts Ether, warns of Ethereum ‘death spiral’

Short-selling firm Culper Research says it has taken a bearish position against Ethereum’s native token and companies closely tied to it, arguing that the blockchain’s economic model is deteriorating following recent network changes.

Summary

  • Culper Research disclosed a short position against ether and ETH-linked stocks, including BitMine.
  • The firm argues Ethereum’s fee revenue has collapsed, weakening the network’s economic incentives.
  • Culper claims some network activity metrics may be inflated by spam transactions such as address-poisoning and dusting.

Short seller Culper targets Ethereum and BitMine in bearish report

In a report published March 5, Culper disclosed it is shorting Ethereum (ETH) as well as equity linked to the asset, including BitMine Immersion Technologies, a firm that has built a large treasury position in the cryptocurrency.

The report argues that Ethereum’s recent upgrades, designed to increase block capacity and reduce transaction costs, have had an unintended consequence: sharply reducing fee revenue that supports the network’s validator incentives.

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Culper said Ethereum’s fee generation has collapsed in recent months, undermining the narrative that the network’s tokenomics are strengthening over time.

Ethereum’s fee revenue has collapsed, and with it the economic engine that once justified ETH’s valuation, the report stated.

According to the firm, the drop in fees is eroding staking yields for validators, potentially weakening long-term incentives to secure the network. Culper described the dynamic as a possible “death spiral,” in which falling economic rewards discourage participation while further undermining network security and investor confidence.

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The report also singles out BitMine, which has accumulated millions of dollars worth of ether as part of a corporate treasury strategy. Culper argues the company’s valuation is heavily tied to the price of ETH and could face significant downside if the cryptocurrency continues to struggle.

Culper’s report also highlights recent on-chain transactions from wallets associated with Buterin, arguing that the Ethereum co-founder has sold tens of thousands of ETH this year, which the firm says undermines bullish narratives around the asset.

“Vitalik is selling, while bulls like Tom Lee are clueless as to ETH’s new reality,” the report said. “We’re with Vitalik.”

Culper also pushed back on bullish interpretations of rising Ethereum transaction counts and address activity, arguing that some of the increase may stem from spam-like on-chain activity such as address-poisoning or dusting transactions rather than organic user growth.

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The short thesis arrives amid a period of volatility for crypto markets, with Ether and other major digital assets facing renewed scrutiny over their long-term economic models as scaling upgrades and layer-2 adoption reshape the blockchain ecosystem.

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How Will Markets React to $2.6B Crypto Options Expiring Today?

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Will Huge $8.3B Bitcoin Options Expiry Trigger Another Dump?


The end of another week has arrived, which means more crypto options contracts are expiring as spot markets eye recovery. 

Around 31,700 Bitcoin options contracts will expire on Friday, Mar. 6, with a notional value of roughly $2.2 billion. This event is much smaller than last week’s, so there is unlikely to be any impact on spot markets.

Crypto markets have seen a little daylight this week, with around $150 billion added to total market capitalization since Monday, but things were starting to cool off again by Friday.

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Bitcoin Options Expiry

This week’s batch of Bitcoin options contracts has a put/call ratio of 1.7, meaning that there are more expiring shorts (puts) than longs (calls). Max pain is around $69,000, according to Coinglass, which is a little below current spot prices, so many could be out of the money on expiry.

Open interest (OI), or the value or number of Bitcoin options contracts yet to expire, remains highest at the $60,000 strike price on Deribit as bearish bets remain dominant. Total BTC options OI across all exchanges has been climbing this month and has reached $41.7 billion.

Crypto derivatives provider Greeks Live observed the market rebound, noting that Bitcoin was firmly holding above the $70,000 psychological threshold and is “now poised to challenge $75,000.”

“However, options market data indicate that selling call options has dominated trading over the past two days. Despite ongoing price gains, momentum has slowed.”

In addition to today’s batch of Bitcoin options, around 184,000 Ethereum contracts are also expiring, with a notional value of $380 million, max pain at $1,950, and a put/call ratio of 0.85. Total ETH options OI across all exchanges is around $7.5 billion.

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This brings the total notional value of crypto options expiries to around $2.6 billion.

Spot Market Outlook

Total market cap is down 1.2% on the day to $2.49 trillion; however, it remains at the upper bounds of its month-long sideways channel.

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Bitcoin hit a four-week high of $74,000 on Thursday but was halted there and has pulled back to $70,300 at the time of writing. The asset has seen a strong recovery since the war in Iran started last weekend.

Ether prices stalled at $2,200 and had declined 2% on the day back to $2,065 during the Friday morning Asian trading session. The altcoins were mostly flat on the day and have failed to move in tandem with the top two this week.

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Bitcoin Relief Rally Fades as Bear Market Signals Hold

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Bitcoin Relief Rally Fades as Bear Market Signals Hold

Bitcoin staged a brief relief rally above $74,000 on Thursday, but it has already petered out as analysts predict a persistent bear market will keep momentum subdued. 

“Bitcoin is still in a bear market despite the recent rally,” on-chain analytics company CryptoQuant said on Thursday.

The platform’s Bull Score Index, a composite indicator that measures the overall health of Bitcoin (BTC) using a combination of fundamental and technical metrics, remains at 10 out of 100, “deep in bearish territory,” it said.

“Even after the recent price rally, fundamental and technical indicators still point to a bear market environment,” it stated. 

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“The current move is likely just a relief rally, not the start of a new bull phase.”

Bitcoin briefly tapped a one-month high of $74,000 on Coinbase on Thursday, touching the 50-day exponential moving average, according to TradingView. However, it has already lost more than $3,000, falling back below $71,000 during Friday morning trading. 

The Bull Score Index remains deep in bear territory. Source: CryptoQuant

Bitcoin still vulnerable to renewed downside pressure

Nick Ruck, the director of LVRG Research, told Cointelegraph that the crypto market’s recent relief rally came on “renewed risk appetite and ETF inflows,” but cautioned that the advance has “quickly faced headwinds with prices pulling back toward $71,000 amid persistent macro uncertainties and fading momentum.”

While the brief push provided a welcome relief rally amid supportive liquidity conditions, “ongoing bear market dynamics reinforce caution as softer macro signals, like the anticipated slowdown in February nonfarm payrolls, keep cryptocurrencies vulnerable to renewed downside pressure,” he said.

BTC quickly loses momentum, slipping 4.7% since Thursday’s high. Source: TradingView

Bitcoin could see renewed buying interest

CryptoQuant said that a positive Coinbase Premium has signaled renewed US buying interest, driving the recent rally

Related: Bitcoin slide slowing, but bear market still in play: Analysts

Bitcoin spot demand from US-based investors also switched from contraction to growth, as seen by the Coinbase Bitcoin Premium “switching from deeply negative territory in early February to the most positive since October,” they said.

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Selling pressure from traders and long-term holders has also eased after unrealized losses reached levels not seen since July 2022.

Meanwhile, analysts at SwissBlock observed on Friday that “momentum is flashing a critical shift,” adding “We’re exiting peak negative momentum, the kind of transition that often precedes a regime change.” 

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