Galaxy Denies $9B Bitcoin Sale Was Linked to Quantum Computing Fears - FinanceFeeds
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Why Did the $9B Bitcoin Trade Draw Attention? Galaxy Digital moved to counter speculation that a large Bitcoin sale executed on behalf of one of its clients was tied to fears over quantum computing. The issue surfaced after the firm’s earnings call, when members of the crypto community linked a reported $9 billion Bitcoin transaction to comments suggesting the client was concerned about Bitcoin’s long-term resistance to quantum advances. The trade attracted attention because of its size and timing. It came as Bitcoin briefly slipped below $74,000, amplifying market sensitivity around large flows and fueling theories that the sale reflected deeper structural concerns rather than portfolio management decisions. Those theories gained traction online following references during the earnings call to client discussions around quantum risk. That interpretation was later challenged by Galaxy executives.
Investor Takeaway Large Bitcoin transactions can quickly trigger narrative-driven reactions. In this case, Galaxy’s response suggests the sale reflected client-specific decisions rather than a broader loss of confidence in Bitcoin’s security model.
Galaxy Denies Link to Quantum Computing Concerns Alex Thorn, Galaxy’s head of research, addressed the speculation directly in a post on X, stating that the $9 billion trade was not executed because of concerns about quantum computing risks to Bitcoin. His comments were intended to separate the client transaction from wider debates about future cryptographic threats. Galaxy’s clarification came alongside the release of its quarterly results. The firm reported a net loss of $482 million for the fourth quarter of 2025 and a loss of $241 million for the full year, figures that added context to the heightened scrutiny of its trading activity and client flows. While the losses were linked to broader market conditions, the coincidence of weak earnings and a high-profile Bitcoin sale helped sustain speculation before the company moved to address it.
Why Quantum Computing Keeps Returning to the Bitcoin Debate Concerns about quantum computing and Bitcoin are not new. Cryptographers have long debated whether future breakthroughs could weaken existing signature schemes, and those discussions have increasingly filtered into asset management circles. Earlier this year, Jefferies’ “Greed & Fear” strategist Christopher Wood reportedly removed his 10% Bitcoin allocation recommendation, citing worries tied to quantum progress. The move added credibility to the idea that quantum risk is beginning to influence portfolio decisions at the margins. Others in the industry have downplayed the urgency. Blockstream CEO Adam Back has argued that quantum computers capable of threatening Bitcoin are still decades away, estimating a timeline of 20 to 40 years before such risks become practical. In parallel, parts of the Bitcoin community have pushed for technical mitigation. Supporters of Bitcoin Improvement Proposal BIP-360 are advocating for a post-quantum signature option designed to protect addresses that could be exposed if quantum capabilities advance faster than expected.
How Market Structure and Regulation Enter the Picture The discussion around Galaxy’s client trade unfolded against a broader backdrop of regulatory and market-structure developments in the US. In a separate interview with Bloomberg, Galaxy CEO Mike Novogratz said recent price declines may be approaching a bottom, though he cautioned that market turning points are only clear in hindsight. Novogratz pointed to progress on the proposed US crypto market structure legislation, commonly referred to as the CLARITY Act, as a potential support for sentiment. The bill is intended to define how regulatory authority is divided between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Work on the legislation has been uneven. In January, the Senate Banking Committee delayed its markup after raising concerns over provisions covering tokenized equities, decentralized finance, and stablecoin yield rewards. More recently, officials from the Trump administration met with crypto and banking representatives to discuss how stablecoin yield should be treated under the draft framework.
Investor Takeaway Short-term price moves and large trades are increasingly interpreted through regulatory and technology narratives. For investors, separating confirmed drivers from speculation remains critical. What the Episode Says About Market Sensitivity The reaction to Galaxy’s client trade highlights how quickly unverified explanations can gain traction in crypto markets, especially when they touch on long-running existential themes such as quantum computing. Even without evidence, those narratives can influence sentiment and price action. Galaxy’s response suggests that, at least for now, quantum risk remains more a topic of strategic debate than a direct trigger for large-scale Bitcoin liquidation. Still, the fact that the explanation resonated with market participants shows how closely investors are watching both technological risks and regulatory signals as the crypto market searches for firmer footing.