Bitcoin Finds Support Amid ETF Outflows as Analysts Track Emerging Link to Japanese Bonds
Bitcoin is showing signs of resilience, trading around $106,402.39 in early Asia trading hours, following a modest 0.9% rebound after weekend declines. The drop came amid heightened geopolitical uncertainty and substantial capital outflows from U.S.-listed spot Bitcoin ETFs, which totaled $616 million—ending a month-long streak of inflows into BlackRock’s iShares Bitcoin Trust.
The largest digital asset by market capitalization fell as low as $103,748, with market participants citing concerns around stalled U.S.–China trade negotiations and shifting risk appetite as key drivers of the downturn.
Notably, macro analysts are drawing attention to an unconventional market signal: Bitcoin’s growing correlation with Japan’s 30-year sovereign bond yields. According to macro strategist Weston Nakamura, this alignment may point to a broader rebalancing of global capital flows and suggests that Japan’s economic signals are beginning to exert greater influence over digital asset pricing than traditional U.S. equity correlations.
Technically, BTC remains in a consolidation range, testing support near $104,300, as market participants evaluate the potential for macro-driven volatility.
Crypto’s Quantum Risk Requires Proactive Investment, Not Passive Waiting, Says Analyst
As quantum computing continues to evolve, crypto systems relying on elliptic curve cryptography (ECC) could face critical vulnerabilities, according to Rick Maeda of Presto Research. In a newly published report and interview with CoinDesk, Maeda argues the industry’s passive stance toward quantum threats could be its undoing.
“The industry isn’t structurally prepared,” he said. “Preparation needs to happen linearly—delayed action means a high-impact failure.”
Maeda emphasizes that the economic structure of the crypto ecosystem discourages early adoption of quantum-resistant technologies due to a lack of clear monetization pathways. “Investors don’t fund what they can’t model into short-term returns,” he noted.
Still, Maeda cautioned against alarmism. Current quantum machines are still operating with limited capabilities—around 10 logical qubits, plagued by high error rates. However, progress in hardware design, such as developments from Google’s quantum division, suggests that future breakthroughs could arrive faster than expected.
The takeaway: while a catastrophic breach isn’t imminent, the window for risk mitigation is narrow and closing.
Headlines in Brief
Meta Shareholders Reject Bitcoin Reserve Proposal
Meta Platforms shareholders decisively voted down a proposal to convert part of the company’s $72 billion in cash reserves into bitcoin. The initiative, proposed by Strive Asset Management and backed by conservative think tank the National Center for Public Policy Research, received support from just 0.08% of shares voted.
Though Meta has pulled back from its earlier ambitions in crypto—including the abandoned Libra project—the company continues to explore stablecoin-based payments across its platforms. Meta shares rose 3.5% to $670.09 in Monday trading.
Stablecoin Regulation Bill Faces Distractions in Senate
Crypto lobbying groups are urging U.S. lawmakers to maintain focus as the GENIUS Act—a bill aimed at stablecoin regulation—enters its final debate stage in the Senate. The bill, which seeks to establish clear regulatory standards for issuers like Tether (USDT) and Circle (USDC), has received bipartisan support in the Senate Banking Committee.
However, advocates warn that attempts to append unrelated legislation, such as the Credit Card Competition Act, could derail the process. Analysts at Capital Alpha Partners estimate the bill has a 60–65% probability of passage in 2025, contingent on both Senate and House alignment.
Market Overview
- Bitcoin (BTC): ▲ 0.9% to $106,402.39 – Recovering from ETF-driven decline, testing key support
- Ethereum (ETH): ▲ 3.0% to $2,539.04 – Strong recovery driven by institutional flows and resilient technicals
- Gold: ▲ 2.1% to $3,371.40 – Boosted by safe-haven demand as the U.S. dollar slips
- Nikkei 225: ▲ 0.36% – Asia-Pacific equities climb amid Wall Street optimism
- S&P 500: ▲ 0.4% – Markets remain upbeat despite trade tensions with China and EU
