StarkWare says optimization efforts connected to its Quantum-Safe Bitcoin (QSB) work have driven down the estimated computational cost of constructing a quantum-resistant Bitcoin transaction to under $67—down from about $320 for the first QSB transaction demonstrated on mainnet in August. The latest figure, published in a Sept. 23 update and reflected on the Yukon QSB dashboard, suggests the benchmark cost has continued to edge lower to roughly $66.

While the QSB approach is designed to improve resilience against future quantum threats without requiring changes to Bitcoin’s consensus rules, StarkWare cautions that the new numbers are based on benchmark tests. The development nonetheless matters for anyone evaluating practical “emergency” defenses for large holders who may be most exposed if public keys are later compromised by quantum-capable machines.

Key takeaways

• StarkWare reports QSB transaction construction costs fell to about $66–$67 after a week of optimization.
• The cost decline follows the Quantum-Safe Bitcoin Optimization Challenge, which generated improvements across the benchmarked transaction-building steps.
• The earliest mainnet QSB demonstration required ~3,100 GPU-hours and cost around $320 in compute, excluding Bitcoin network fees.
• QSB is positioned as an “emergency” measure; StarkWare says broader, long-term protection likely still requires a consensus-layer soft fork.
• StarkWare emphasizes the latest optimizations are verified via benchmarks, not renewed full mainnet demonstrations.

From a $320 demo to a sub-$67 benchmark

StarkWare’s update ties the cost reduction to participant work in the Quantum-Safe Bitcoin Optimization Challenge, a collaborative effort involving Yukon Research and Eigen Labs. The initiative focused on reducing the GPU computation needed to prepare a QSB transaction.

In August, StarkWare said a QSB transaction was mined and confirmed on Bitcoin’s mainnet. According to that earlier account, the engineering effort behind the demonstration involved Tomer Giladi and submission via MARA’s Slipstream service. Preparing the transaction required approximately 3,100 GPU-hours across roughly 100 GPUs, translating to about $320 in compute cost, excluding network fees.

The new update describes how the challenge achieved a sharper efficiency gap. StarkWare reports that the competition produced 62 accepted improvements across two computational tasks required to build a QSB transaction. Based on benchmark testing, these changes reduced the estimated computing cost by about 79%—bringing it down to the current $66–$67 range shown on the Yukon dashboard.

Why QSB is framed as an “emergency” defense

The broader motivation for QSB is the risk that a sufficiently powerful quantum computer could break the elliptic-curve digital signatures Bitcoin relies on. If that future capability arrives, attackers could potentially steal coins whose public keys are exposed, making timing and practicality important for holders who need protection under constrained conditions.

StarkWare’s QSB design, first published by researcher Avihu Levy in April, aims to add hash-based protection against quantum attacks without changing Bitcoin’s consensus rules. That non-consensus approach is part of what makes QSB attractive as an add-on defense—particularly if consensus changes remain difficult or slow.

However, Levy previously characterized QSB as a “last resort measure,” citing cost, complexity, and limited applicability. StarkWare’s latest messaging continues that framing: even with a nearly 80% reduction, a few hundred dollars per transaction still signals that QSB remains closer to an emergency tool than a fully routine mechanism for all holders.

The challenge’s impact—and what remains unproven

The Optimization Challenge opened on Sept. 16, inviting developers, researchers, and AI agents to refine the software needed to generate QSB transactions more efficiently. StarkWare says the resulting improvements were accepted across two computational tasks that together determine the overall benchmark cost.

The key point for investors and builders is the distinction between benchmark performance and real-world transaction preparation at full scale. StarkWare’s update presents the new $66–$67 number as an estimated computational cost derived from performance tests. That means the update demonstrates algorithmic and engineering efficiency, but it does not, by itself, confirm that the most recent optimizations have been used to create and confirm additional QSB mainnet transactions.

Still, the direction of travel is meaningful: getting from roughly $320 to under $67 transforms the practicality of the technique for larger holders who may prioritize the ability to execute a protective transaction when conditions warrant it. In its Sept. 23 update, StarkWare argued that a construction costing a few hundred dollars is “a demo,” while costs closer to $67 are more plausible for emergency use by holders with significant balances—without requiring network rule changes.

Soft forks remain the long-term focus

QSB exists within a broader debate on how Bitcoin should prepare for quantum threats. StarkWare says it continues to favor a soft fork—a change to Bitcoin’s consensus rules—as a better “long-term answer” for wider, more reliable quantum protection across the ecosystem.

This matters because emergency add-ons, while potentially useful, are inherently narrower in scope: they do not automatically provide the systemic coverage that consensus-level changes can offer. The latest cost reductions therefore read less like a final end-state and more like progress toward making an interim strategy less prohibitive while the community works through governance, implementation, and security trade-offs for longer-range solutions.

For now, readers should watch the Yukon QSB dashboard for whether the benchmark estimates keep moving and whether the community follows up with additional mainnet demonstrations using the newly optimized construction pathways. The biggest open question remains whether benchmark gains translate into repeated, end-to-end operational readiness when real constraints—beyond compute estimates—come into play.

Citigroup has pushed its forecast for the Federal Reserve’s next interest rate cut to June 2027 after stronger US jobs data reduced concerns over the labor market, leaving Bitcoin and the crypto market facing the prospect of higher borrowing costs for longer.

Reuters reported that Citi had previously expected the Fed to cut rates in October and December 2026 and again in January 2027. The bank has replaced those calls with three reductions in June, September and December 2027 after August payrolls came in well above forecasts.

US employers added 162,000 jobs in August, compared with economists’ expectations of 53,000, while the unemployment rate remained at 4.1%. The monthly payroll gain was the strongest since March, and the labor force participation rate rose by 0.2 percentage point.

Earlier employment figures were revised higher as well. July payrolls were changed to a gain of 21,000 from a previously reported loss of 23,000, while the June figure was raised by 11,000.

Citi economists Andrew Hollenhorst and Veronica Clark said the figures suggested Fed officials would see employment conditions as broadly stable and focus more closely on inflation.

“The unemployment rate was unchanged and labor force participation rebounded noticeably,” they wrote.

Strong jobs data changed Fed expectations and hit Bitcoin

The jobs report quickly reached the crypto market as traders raised their expectations for tighter monetary policy.

Bitcoin fell below $80,000 following the August employment data, reversing from an intraday high around $81,370 as markets repriced the outlook for US interest rates. As crypto.news previously reported, BTC was trading near $79,600 after the release, down around 1.5% over 24 hours.

Rate futures at the time placed a 61% probability on a Fed hike at the Sept. 15 to 16 meeting, up from 52% before the employment figures were released, according to Reuters.

The Fed has since delivered that increase. Policymakers raised the benchmark rate by 25 basis points on Sept. 16, taking the federal funds target range to 3.75% to 4%. It was the central bank’s first rate hike since July 2023.

New projections released with the decision showed that 16 of 18 Fed officials expected at least one more rate increase before the end of 2026.

Citi’s revised forecast now places the first expected cut roughly nine months after the September hike. The bank had previously been among the more dovish forecasters on Fed policy, with its earlier projections calling for three cuts between October 2026 and January 2027.

Higher rates remain a pressure point for Bitcoin and crypto

Bitcoin has repeatedly reacted to changes in US interest rate expectations this year as inflation, employment and energy prices changed the path investors expected the Fed to take.

A stronger labor market gives policymakers less reason to lower borrowing costs to support employment, while persistent inflation has kept attention on the other side of the Fed’s dual mandate.

Inflation has remained above the central bank’s 2% target for more than five years. Fed officials have consequently kept open the possibility of tighter policy if monthly inflation readings fail to show sufficient moderation.

That backdrop has already produced periods of pressure across crypto markets. Ahead of the September Fed meeting, the global crypto market lost more than 2% as the probability of a 25 basis point rate increase moved above 92%. Bitcoin fell below $76,000 during the move.

Treasury yields and the US dollar can compete with risk assets for capital when investors expect rates to remain elevated. Crypto assets do not generate interest simply from being held, while higher yields on government debt can give investors another place to park capital.

Market behavior since the Fed meeting, however, has not followed a simple higher rates equals lower Bitcoin pattern.

Bitcoin has recovered despite the Fed rate hike

Bitcoin briefly moved toward $75,000 after the Sept. 16 decision but later recovered, eventually climbing above $86,000 as ETF demand returned, Treasury yields eased and short sellers were forced to close bearish positions.

The cryptocurrency briefly touched $87,000 this week, its highest level since late January. US spot Bitcoin ETFs recorded $433 million in net inflows on Sept. 18 after heavy withdrawals earlier in the week.

HashKey Group senior researcher Tim Sun said ETF inflows confirmed the rally instead of starting it, while the move through $82,000 triggered short covering that helped carry BTC higher.

BitGo Research has similarly argued that Bitcoin absorbed the Fed hike better than might have been expected. Research chief Greg Cipolaro pointed to Bitcoin’s recovery following both the Fed decision and the failed Senate cloture vote on the CLARITY Act.

The interpretation remains a market view rather than proof that Bitcoin has become insulated from monetary policy. BTC’s rebound coincided with several developments, including renewed ETF demand, falling Treasury yields, lower oil prices and short covering, making it difficult to attribute the move to one factor.

Citi’s new rate path therefore arrives as Bitcoin trades in a different environment from the one immediately following the August employment report. Markets have already absorbed one Fed hike, while policymakers have signaled that another increase remains possible before year end.

Fed Governor Christopher Waller and New York Fed President John Williams have said they favor holding rates steady as long as inflation continues to moderate on a monthly basis. Waller and Fed Governor Michael Barr have left the door open to further increases if incoming figures fail to show continued progress on prices.

Citi now expects the first reduction in June 2027, followed by cuts in September and December, replacing the three reductions it had previously forecast between October 2026 and January 2027.

The Federal Reserve’s decision last week to raise interest rates for the first time since 2023 has stirred fears that the economy is moving into the later stages of the business cycle. Morgan Stanley sees something different: a “classic” mid-cycle environment that could increasingly favor large-cap, high-quality stocks as earnings season approaches.

“Stick with large cap quality stocks,” Morgan Stanley strategist Mike Wilson wrote in a Monday note reviewed by Business Insider.

Must Read

The bank identified 15 major stocks that fit its quality criteria and carry an “overweight” rating from its analysts, including chipmakers Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU), tech companies Apple (NASDAQ: AAPL) and SanDisk (NASDAQ: SNDK) and credit giants Visa (NYSE: V) and Mastercard (NYSE: MA).

The rest of the list spans several sectors, including consumer staples, retail, health care, technology, semiconductor equipment, software and travel.

Among them are Costco (NASDAQ: COST), Coca-Cola (NYSE: KO), Lam Research (NASDAQ: LRCX), Arista Networks (NYSE: ANET), Gilead Sciences (NASDAQ: GILD), Seagate Technology (NASDAQ: STX) and Booking Holdings (NASDAQ: BKNG), along with the beaten-down UnitedHealth (NYSE: UNH) and ServiceNow (NYSE: NOW), which was caught up in the broader software selloff earlier this year.

To make the cut, companies had to rank among the 1,000 largest stocks by market value, have higher earnings estimates than three months ago, place in the top third of Morgan Stanley’s quality screen and carry an “overweight” rating from the bank’s analysts.

What changes in mid-cycle

The focus on earnings reflects Morgan Stanley’s broader view of where the market is headed. The bank believes that the bull market still has room to run, but the companies leading it could change as the economic cycle matures. Wilson has previously described a shift away from the early-cycle environment, when economically sensitive, higher-risk companies benefited as earnings rebounded from depressed levels.

In the mid-cycle phase, strong earnings growth becomes more important as higher interest rates weigh on stock valuations. Wilson has pointed to the current combination of strong earnings growth and declining valuations as a sign that this shift is already underway.

During mid-cycle, “quality starts to matter again,” Wilson said in an Aug. 3 episode of the Thoughts on the Market podcast. In a follow-up podcast on Sept. 18, he pointed to strengthening earnings expectations in software, financial services, insurance and health care services, suggesting those sectors could pick up some of the momentum enjoyed by semiconductors and other cyclical stocks earlier this year.

There are signs that shift may already be underway. The Philadelphia Semiconductor Index, a widely followed benchmark for the chip industry, has surged 75% this year but is down roughly 14% from its June high, according to Yahoo Finance data.

For investors, a shift in market leadership would put more weight on companies that can keep growing earnings and generating cash even as borrowing costs rise.

Read More: Vanguard reveals what’s coming for U.S. stocks — and it could be bad news for this group of investors

How long will the earnings boom last?

If earnings are becoming more important to stock returns, investors may need to be more selective about where they put their money. That comes after an especially strong second quarter, when S&P 500 earnings grew 28.9%, according to FactSet, marking the third straight quarter of growth above 25%.

Analysts tracked by FactSet expect earnings growth to remain strong in the third quarter, but Goldman Sachs sees that pace slowing next year.

In May, Goldman forecast S&P 500 earnings growth of 24% this year, slowing to 13% next year. The bank also expects companies benefiting from AI infrastructure spending to account for roughly half of this year’s earnings growth.

But Goldman has also made the case for looking beyond the stocks that have led those gains, supporting Morgan Stanley’s argument for a more selective approach. Chief U.S. equity strategist Ben Snider said it would be beneficial for investors “to diversify beyond AI-infrastructure stocks,” especially if an improved geopolitical outlook boosts consumer-facing stocks.

What To Read Next

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

This article originally appeared on Moneywise.com under the title: Morgan Stanley names its ‘overweight’ stocks to buy as earnings season approaches

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Strategic Shift to Proprietary IP and Direct-to-Consumer Ecosystem

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our #1 pick. Tap here.

• Management is transitioning the business model into a strategic closed loop, integrating proprietary IPs with direct-to-customer (D2C) channels to reduce reliance on volatile third-party distribution.

• The company is deliberately prioritizing long-term IP asset value and perceived scarcity over short-term wholesale volume, viewing distribution as a reach tool rather than a loyalty driver.

• Performance attribution for the fiscal year highlights the successful scaling of the proprietary IP ‘SIINONO’, which reached a near CNY 100 million annualized scale in under 12 months.

• Operational priorities have shifted toward perfecting structural unit economics and D2C retail networks, which serve as both premium theaters for product presentation and incubators for new IP testing.

• Management attributes the current bottom-line loss to a one-time non-cash market valuation adjustment and necessary upfront investments in design and brick-and-mortar expansion.

• The ‘others’ IP category saw a 661% year-over-year surge, validating a diversified flywheel strategy intended to mitigate dependency on any single flagship IP.

Operational Refinement and Sustainable Profitability Mandate

• The near-term strategic mandate focuses on driving toward sustainable profitability by aligning cost structures with stabilized revenue through disciplined expense optimization.

• Management expects to close the gap between revenue and cost trends over time as they transition from aggressive deployment to maximizing same-machine efficiency in the Roboshop network.

• Future inventory management will leverage real-time data from D2C stores and Roboshops to build predictive demand models, reducing the mismatch between production and market sell-through.

• The company plans to capture peak tourist flows during the National Day Golden Week via the launch of a multilayered experiential cruise project at Hong Kong’s Central Pier.

• Guidance assumes a continued challenging retail environment, with management refusing to resort to aggressive clearing measures that might undermine brand premium.

Non-Operating Adjustments and Structural Headwinds

• A one-time non-operating loss was recorded due to market valuation adjustments, which management emphasized is non-cash and separate from core operations.

• A goodwill impairment charge of CNY 124.1 million was recognized related to the Fastone acquisition, driven by lower-than-expected performance amid macro headwinds.

• Channel inventory levels exceeded normal ranges due to a structural mismatch between the cooling macro environment and historical wholesale-led operating paces.

• The company initiated a $20 million ADS repurchase program in June 2026, signaling confidence in long-term asset value despite current market volatility.

Story Continues

Her inner circle includes roommate Rashida Duvall (Alijah Kai, another standout), a driven scholarship student who calls herself “the Simone Biles of school” and whose eventual bond with Deborah echoes Whitley’s odd-couple friendship with her own Hillman roommate, Kim (Charnele Brown, who also guest stars). Hazel Henry (Kennedi Reece), whose church-girl innocence belies big ambitions, completes the trio. Among Shaquille’s boys are Kojo Achebe (Chibuikem Uche), whose aspirations of becoming a fashion designer don’t exactly thrill his strict African parents, and Amir Rodale (Jordan Aaron Hall), a formerly incarcerated student whose time in juvie continues to interfere with his life at Hillman. Amir is also the franchise’s first gay main character, an identity that Hall and the writers navigate with grace and ease.

It’s a reverent reinvention, one that the people behind the first Different World clearly support. (Jada Pinkett Smith, Joe Morton, Glynn Turman, and Jenifer Lewis are just a few of the other past stars who appear.) Without defaulting to the Very Special Episodes that worked better in primetime than they do in a binge-dropped streaming season, Pride engages with issues relevant to her young, Black characters, often letting themes develop across episodes. Allen’s groundbreaking storylines about apartheid protests, AIDS, and the censorship of rap lyrics have given way to ones that consider the stigma around learning disabilities, friction between African and Black American cultures, and HBCUs’ reliance on funding from an anti-DEI federal government. In one episode, a bomb threat forces students to realize the school they’d hoped would give them a four-year reprieve from racism is also uniquely vulnerable to it. Yet, true to its history, the show thoughtfully interweaves these topical beats into collegiate lives that revolve around schoolwork, romantic mess, friend-group drama, money troubles, dreams of the future.

Bitcoin has traded near $84,000 on Sept. 24 after rejecting the $87,000 area, while 100–1,000 BTC wallets accumulated 113,950 BTC and U.S. spot Bitcoin ETFs extended their net inflow streak to five sessions.

CoinGecko data showed Bitcoin at $83,863.54 during the latest check, down 3.8% over 24 hours but up 9.9% over seven days. Trading volume stood near $42.69 billion, while the asset’s market capitalization was approximately $1.685 trillion.

The pullback followed a run to $87,392 on Sept. 21, the highest print since Jan. 29, according to Bitfinex Alpha. In related crypto.news coverage of Bitcoin’s $83,600 Supertrend support test, BTC had already lost momentum after moving above $87,000 and falling back below $85,000.

Bitcoin price stays above Rekt Capital’s $82K support zone

Crypto analyst Rekt Capital said Bitcoin was meeting resistance around $86,700 after its breakout from the previous $60,000–$80,000 range. In a Sept. 23 post, the analyst described the resistance as “nothing too convincing for the time being,” while keeping attention on support below the market.

Rekt Capital said Bitcoin would need to remain above roughly $82,000, or successfully retest the area during a future dip, to stay positioned for bullish continuation. A later post placed the previous range high around $80,000 and said Bitcoin had not fully confirmed its breakout until that area had been tested as support. Both levels represent the analyst’s technical framework, not guaranteed price outcomes.

Meanwhile, on the one-hour chart, Bitcoin’s RSI stood at 39.38 while the Money Flow Index was 37.71. Both indicators remained below 50 after the pullback from the $86,000–$87,000 area, pointing to weaker short-term momentum without entering deeply oversold territory.

Advertisement

A separate crypto.news market analysis placed four-hour Supertrend support near $83,593 after Bitcoin fell from roughly $87,279.

Bitfinex Alpha described $85,000–$86,500 as a high-volume buyer cost area after the move to $87,392. Its Sept. 23 report said Bitcoin had reached a price area that separated lasting recoveries from failed rebounds during previous cycles, while continued ETF and corporate purchases remained part of its framework.

Bitcoin whales have added 113,950 BTC since July

Santiment posted that wallets holding between 100 and 1,000 BTC increased their combined balance by 113,950 BTC from July 15 through Sept. 23. The cohort’s holdings rose 2.22% to approximately 5.24 million BTC during the period. Independent reports citing the same Santiment dataset carried matching figures.

🐳 Bitcoin’s 100-1,000 $BTC wallets are accumulating fast. Since July 15, they’ve added 113,950 BTC, growing their collective holdings by 2.22% to roughly 5.24M BTC.

🧠 This wallet tier has historically been one of Bitcoin’s most useful smart money groups to watch. Santiment’s… pic.twitter.com/tCntKfdPQg

— Santiment Intelligence (@SantimentData) September 23, 2026

Advertisement

Santiment described the group as one of the wallet tiers that has tracked crypto market direction closely in its five-year analysis. The firm said accumulation by the cohort has often appeared before or during stronger price periods. Historical correlation, however, does not establish that changes in the group’s balances caused Bitcoin’s subsequent price moves.

Wallet data carries another limitation. An address does not represent a confirmed individual investor because one entity can control several wallets, while exchanges and custodians can move coins among addresses. The figures therefore document rising balances inside the 100–1,000 BTC cohort without proving that a known group of institutions or funds purchased the coins on the open market.

During the same period, Bitcoin recovered sharply from its July 1 low of $57,803, according to Bitfinex. The price reached $87,392 on Sept. 21 before retreating toward $84,000 this week.

U.S. Bitcoin ETF inflows have reached five straight sessions

SoSoValue-linked data reported $346.98 million in net inflows for U.S. spot Bitcoin ETFs on Sept. 23. BlackRock’s IBIT led with $166.29 million, followed by Fidelity’s FBTC at $143.24 million. Morgan Stanley’s MSBT received $32.41 million, while ARK 21Shares’ ARKB took in $5.04 million.

Advertisement

The Sept. 23 total extended the positive run to five trading sessions. The streak included $159.5 million on Sept. 17, $433 million on Sept. 18, approximately $999 million on Sept. 21 and $714.7 million on Sept. 22 before the latest $346.98 million reading. The five sessions brought combined net inflows to roughly $2.65 billion. Earlier crypto.news coverage examined Bitcoin ETF inflows during the move above $86,000.

Demand during the session extended beyond Bitcoin products. SoSoValue data showed U.S. spot Ether ETFs receiving $105 million on Sept. 23, led by BlackRock’s ETHA with $50.8 million and Fidelity’s FETH with $41.3 million. Grayscale’s ETH fund recorded approximately $4.1 million in net outflows.

Binance leverage has fallen faster than Bitcoin’s price

CryptoQuant analyst Amr Taha said Binance Bitcoin open interest fell from roughly $5.4 billion to $4.9 billion between Sept. 21 and Sept. 23. The $500 million reduction removed approximately 9.3% of outstanding positions while Bitcoin pulled back around 3.4% from the $87,000 area.

Taha reported that cumulative volume delta fell from nearly $3 billion to $1.48 billion over the same period, a decline of roughly 51%. He interpreted the combination of lower price, open interest and CVD as evidence that leveraged traders had reduced risk after Bitcoin failed to hold the push toward $87,000. The interpretation does not identify the individual traders behind the positions.

A separate CryptoQuant update dated Sept. 23 showed Binance BTC funding near 0.001%, close to neutral. Its author said funding around zero indicates that derivatives positioning has become less one-sided than during periods of aggressive leveraged-long activity.

Advertisement

Bitfinex, in its Bitcoin $85K buyer cost analysis, placed the next major cost area between $85,000 and $86,500, with the yearly open at $87,722 above it. The firm put the corporate treasury cohort’s average cost near $80,500 and said “a sustained move below $81,300,” particularly alongside ETF outflows, would challenge its reading of the breakout.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Advertisement