Stop Chasing Quantum Ghosts. Fix the Lock On Your Front Door First

Stop Chasing Quantum Ghosts. Fix the Lock On Your Front Door First

7 Key Points:

1/ Crypto lost over $2.2 billion (maybe more now) across 288 documented attacks by late September 2026, putting the year on pace to rival the worst on record.

2/ Off-chain attacks accounted for 76 percent of hack losses in the dataset. Private keys and smart contracts were often not the main weak link.

3/ The Trezor impersonation case cost one person $282 million after a fake support contact obtained a seed phrase.

4/ Coldcard lost $112.7 million through a firmware randomness flaw. Investigators said intruders used unrestricted AI models to find and exploit the weakness.

5/ Bitget lost $387.5 million after a third-party zero-day and stolen internal credentials let criminals push fraudulent withdrawals. Kelp DAO lost $292 million from a cross-chain bridge configuration with a single point of failure. Supply chain and configuration risks are central.

6/ AI is already cheap and scalable. CrowdStrike saw an 89 percent surge in AI-enabled threats and 88 percent of vulnerability attacks starting within 48 hours of a public proof of concept. Fortinet recorded a 389 percent rise in ransomware victims.

7/ Quantum planning matters, with experts warning of relevant machines in the 2029 to 2030s range, but it is a multi-year migration problem.

 

The numbers land on you like a heavy weight. By late September 2026, the crypto industry had already lost more than $2.2 billion across 288 documented attacks. That figure puts this year on pace to rival the worst on record. The headline number tells a misleading story if you stop there. The real story is in the data, and it points to a threat that looks nothing like the one most boardrooms and security teams worry about.

Take a breath and look at the shape of the damage. In January, a single person lost $282 million after an impersonator posing as Trezor support convinced them to hand over a seed phrase. That was not a broken smart contract. That was a human being trusting a voice on the other end of a message. In July, intruders drained $112.7 million from Coldcard hardware wallets by exploiting a firmware flaw that affected how those devices generated randomness. In September, Bitget lost $387.5 million after criminals exploited a zero-day in third-party security products and used stolen internal credentials to push fraudulent withdrawal commands through the exchange’s own systems. In April, Kelp DAO lost $292 million due to a cross-chain bridge configuration that created a single point of failure for bad actors to poison.

Now look at what those incidents have in common. Private keys were not the weak link in most of them. Code was not the only weak link either. The losses moved through trust, through supply chains, and through the tools and people around the code. Off-chain attacks, the kind that compromise credentials, manipulate people, and poison supply chains, accounted for 76 percent of hack losses in the data set behind that $2.2 billion figure. The threat has shifted away from vanilla smart contract exploits and toward the infrastructure and human layers that hold everything together.

That migration matters because it tells us where defense dollars and attention belong right now. It tells us something else, too. The most urgent fight is not the one against a future quantum computer. The most urgent fight is the one against attacks happening today, many of which use artificial intelligence that is already here and already cheap.

The economics explain the shift. A phishing kit costs almost nothing and reaches on thousands of targets in minutes. A compromised vendor account opens a path into every customer the vendor serves. A stolen session token can bypass the password and the second factor in one move. Security teams that still model the adversary as a lone coder hunting for a reentrancy bug are modeling a smaller threat than the one that actually shows up. The intruders who took $2.2 billion this year studied the humans, the vendors, and the tools. They did not wait for a physics breakthrough.

Consider the pace of change. Verizon’s 2026 Data Breach Investigations Report found that 31 percent of confirmed breaches involved exploitation of software vulnerabilities, and that vulnerability exploitation overtook stolen credentials as the primary initial access vector for the first time. CrowdStrike observed an 89 percent surge in AI-enabled cyber threats, with 88 percent of attacks targeting vulnerabilities occurring within 48 hours of a public proof-of-concept release. Fortinet recorded a 389 percent year-over-year increase in ransomware victims as criminals used AI to automate and scale their operations. These are not projections about some distant future. These are measurements of the present.

The Coldcard case shows how directly AI has changed the game. Investigators found that intruders used unrestricted AI models to uncover and exploit a firmware weakness. On the defensive side, Coinkite used frontier AI tools to audit its entire system after the breach and found problems unrelated to the original bug. AI is not waiting for quantum computing to arrive before reshaping the balance between attackers and defenders. It is reshaping that balance right now, and security teams that treat AI as an afterthought are losing ground.

Why does the quantum conversation keep pulling attention away from this? Partly because quantum feels like the ultimate threat, the kind of thing that justifies major strategic planning and long timelines. The Government Accountability Office reports that experts believe a cryptographically relevant quantum computer could arrive as soon as the 2030s. Google warned in March 2026 that one could arrive by 2029. Those warnings deserve attention. Cryptographic migration takes years, and the harvest-now-decrypt-later problem means some data already sits in intruders’ hands. Nobody should dismiss quantum planning as fantasy.

Planning for quantum and defending against today’s attacks are not the same job, and they do not compete for the same urgency. A quantum computer capable of breaking RSA-2048 does not yet exist. An AI-assisted phishing campaign that drains a nine-figure wallet exists today. A supply chain compromise that evades a third-party security product exists today. A social engineering operation that convinces a person to surrender the one secret that protects everything exists today. The losses are not theoretical. They sit on chain, block by block, month after month.

The instinct to talk about quantum first feels prudent, but it gets priorities backward. Quantum is a migration problem with a horizon measured in years. AI-powered attacks on current code and people are an operational problem with a horizon measured in hours. CrowdStrike found that 88 percent of vulnerability attacks began within 48 hours of a public proof of concept. A defender who spends this quarter building a post-quantum roadmap but does not harden the identity layer, audit the supply chain, and train people to recognize impersonation is preparing for the wrong fight at the wrong time.

This is not an argument against quantum readiness. It is an argument about sequence. First, get the current code and the current humans into a defensible position. Treat AI as the primary adversarial capability it already is, not as a curiosity to address after leaders sign off on the quantum migration plan. The 2026 data is screaming a clear message. The billions are not disappearing because someone built a quantum computer. They are disappearing because criminals are using available tools against the weaknesses in the systems and people we rely on right now.

 

https://www.benzinga.com/opinion/26/10/62597642/stop-chasing-quantum-ghosts-fix-the-lock-on-your-front-door-first

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.

j j j

Can Bitcoin Reclaim $80,000 Before the Fed Speaks?

Can Bitcoin Reclaim $80,000 Before the Fed Speaks?

It’s Monday. Bitcoin slipped 0.97% to $79,912.85 over the last 24 hours. That number alone looks mild for an asset known for violent swings. The total crypto market cap fell 0.72% to $2.68 trillion. Bitcoin’s 7-day correlation with the S&P 500 reached 83.4%. That correlation explains the move better than the price change. This was not a crypto-specific breakdown. It was a risk-asset repricing shaped by fragile positioning and tougher financial conditions.

Institutional flows supplied the first push. U.S. spot Bitcoin ETFs lost about $635.5 million on October 22 and another $137.9 million on October 23. Combined outflows reached roughly $773.5 million over 2 days. That reversal followed prior-week inflows. The speed of the turn challenges the idea that ETF money is steady and structural. It behaves tactically. It chases momentum and exits when fear rises. This flow reversal added direct selling into an already nervous tape.

Leverage amplified the decline. Leveraged positions fell roughly $815 million to $837 million in 24 hours. Bullish traders took most of the damage. Total derivatives open interest fell 8.6%, which confirms broad deleveraging rather than an isolated spot sale. Stop losses and forced sales fed the drop. The flush removes speculative weight, but it also shows how crowded longs had become. A market cannot build a durable rally on a foundation of stretched positioning.

Geopolitical risk added another layer. Weekend headlines reported that President Trump said the U.S. could strike Iran as soon as Sunday. Bitcoin trades around the clock and absorbed early selling before traditional equity markets opened. This is a structural disadvantage in a crisis. Investors seeking protection do not treat Bitcoin as a hedge. It trades like a risk asset. The 83.4% correlation with the S&P 500 reinforces that role. Short-term behavior is currently indistinguishable from equities, and traditional equity futures were also weak.

The rates backdrop made the selling easier. The 10-year Treasury yield remains elevated near 5.3%, and September CPI came in at 3.7% year over year. Sticky inflation and high yields reduce demand for non-yielding volatile assets. Crypto sits at the far end of the risk curve, so it feels that strain more acutely than most sectors. The Federal Reserve’s October 28 decision is the key near-term catalyst. A hawkish tone would extend the pressure and make a test of $77,600 more likely. A dovish shift, or cooling inflation data on October 29, could stabilize prices and give the asset class room to breathe. Traders are not waiting for a crypto-native catalyst. They are waiting for an economic signal.

The technical picture tells a similar story. Bitcoin trades below the $80,000 to $81,500 resistance zone, which aligns with the estimated cost basis for ETF and corporate treasury holders. A sustained failure to reclaim that zone keeps the bias bearish and puts $77,600 in play, a level Glassnode identifies as the True Market Mean. On the total market cap chart, $2.68 trillion is the immediate pivot. A hold above that level could open a rebound toward $2.74 trillion. A break below risks testing the $2.6 trillion to $2.64 trillion range. These are not arbitrary lines. They are levels where holders have shown conviction before, and where the next battle will take place.

My point of view is that this moment is a healthy but uncomfortable reset. It exposes 2 weaknesses that the bullish narrative prefers to ignore. The first is that institutional demand through ETFs is far more fragile than the adoption story admits. The second is that leverage remains a permanent feature of this asset class, and it turns ordinary corrections into cascade events. Neither weakness is fatal. Both argue for humility about how quickly Bitcoin can decouple from the broader financial system. The correlation with the S&P 500 is not a temporary anomaly. It is the current regime.

The near-term outlook is bearish below $80,000, but that bearishness is conditional. The Fed could change the mood in a single statement. The daily close relative to $80,000 and the policy language on October 28 will decide whether this is a brief shakeout or the start of a deeper move toward $77,600. My view is that the next leg will come from policymakers, not crypto developers, ETF issuers, or on-chain metrics. Bitcoin’s short-term fate is not in its own hands. This sell-off reveals that uncomfortable truth with unusual clarity.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.

j j j

Will Bitcoin hold its US$64,500 line in the sand, or are we heading straight for a test of the US$63,170 support level?

Will Bitcoin hold its US$64,500 line in the sand, or are we heading straight for a test of the US$63,170 support level?

Bitcoin slipped 1.28 per cent to US$65,127.33 over the past 24 hours, tracking a 1.38 per cent decline in total crypto market capitalisation, and the story behind that move tells us far more about positioning fragility than about any fundamental shift in conviction. Two macro forces converged to trigger the selloff.

Stalled Senate negotiations on the CLARITY Act crushed near-term hopes for regulatory clarity, while Brent crude oil surged past US$101 per barrel amid Middle East tensions, reigniting inflation fears that ripple directly into risk-asset pricing. When legislators cannot agree on a framework and energy costs climb at the same time, traders pull back from anything that smells like speculation. Bitcoin, as the most liquid proxy for crypto risk, absorbed the initial hit and dragged the rest of the market along.

But the macro trigger only lit the fuse. The real damage came from the derivatives complex. Bitcoin liquidations jumped 74.57 per cent to US$49.41 million in a single day, with long liquidations accounting for US$41.89 million of that total. That is not a gentle unwind. That is a cascade of overextended bulls getting margin-called into a thin order book, each forced sale pushing price lower and triggering the next liquidation in a vicious feedback loop.

The broader market saw over US$182 million in total liquidations, and the CoinGlass data I reviewed paints a picture of a market clearing excess leverage on both sides rather than reacting to one clean directional catalyst. Aggregated figures showed roughly US$79.58 million in leveraged positions wiped out, with short liquidations near US$39.58 million and long liquidations around US$4.0 million in one reporting window, though cross-exchange inconsistencies mean the true total likely runs higher. The discrepancy itself tells you something important about how fragmented and opaque this market remains.

Ethereum bore the heaviest individual burden, leading all assets with US$41.15 million in 24-hour liquidations and dropping 2.51 per cent to US$1,881.63. The 24-hour heatmap showed Ethereum at US$38.10 million and Bitcoin at US$23.74 million in total liquidation volume, dwarfing every other token by a wide margin.

Here is what strikes me as most telling. Bitcoin logged roughly US$1.20 million in liquidations, split between US$638,500 in longs and US$563,700 in shorts, while Ethereum saw US$1.73 million in liquidations, split between US$873,400 in longs and US$854,200 in shorts.

That near-balance in the two largest assets signals a broad deleveraging phase, not a one-way squeeze. The market is shaking out crowded bets in every direction, which typically accompanies mean-reverting, choppy conditions rather than the start of a sustained trend in either direction.

The exchange-level data reinforces this reading. In the most recent four-hour window, US$9.61 million in liquidations hit the tape. Binance led with US$5.30 million, representing 55.19 per cent of the total, and long liquidations accounted for 63.79 per cent of that total. OKX followed with US$1.23 million and a similar long-heavy split at 63.2 per cent.

Bybit recorded US$1.02 million with an unusually high 84.42 per cent long share, while Aster posted US$539,120 with longs representing 91.78 per cent. Gate also reported a high long share at 85.34 per cent. Hyperliquid stood apart with a nearly even split of 52.99 per cent longs and 47.01 per cent shorts across US$474,640 in liquidations, hinting at genuine two-sided turbulence.

When I see venues like Bybit and Aster showing such extreme long concentration, I read that as crowded directional bets getting punished by intraday whipsaws, not by a structural breakdown in demand.

For Ethereum specifically, the technical picture demands close attention. The 78.6 per cent Fibonacci retracement level at US$1,860 and an ascending trendline from the June low form a critical support confluence. Resistance sits near US$1,955, and short liquidation concentrations cluster around US$1,958 to US$1,965, which could fuel a squeeze if price approaches that zone.

The RSI hovering near 36 suggests oversold conditions that historically precede consolidation or a bounce. Spot ETF inflows of US$72.64 million on July 22 provide an underlying institutional bid, though repeated ecosystem exploits, including a US$7.5 million Verus bridge attack within a broader US$35 million attack wave, dent confidence and keep sentiment cautious among retail participants.

Bitcoin faces its own technical crossroads. Price trades below the 200-day moving average at US$72,687 but above the 50-day at US$62,786. The US$64,500 level represents immediate support, and a break below it risks testing US$63,170 near the 50-day line. A daily close above US$66,800 resistance would signal genuine buyer conviction returning to the table. With a 79 per cent probability of a September Fed rate hike and WTI crude above US$90, the macro backdrop offers little comfort for aggressive risk-taking in the near term.

My read on this market is straightforward. We are watching a leverage-driven shakeout play out within a range-bound regime, not the beginning of a structural bear market. The balanced long and short liquidations in major assets, the rotation into smaller tokens, and the minimal spot movement relative to derivatives carnage all point to position crowding as the culprit. Traders who reduce leverage, widen their liquidation buffers, and avoid tight stops near obvious levels in thin-liquidity altcoins will navigate this stretch far better than those chasing direction on every candle.

The next meaningful signal will come from open interest trends, funding rate normalisation, and whether Senate lawmakers break the CLARITY Act deadlock. Until then, expect choppiness, respect the liquidation heatmap, and treat every sharp move as a positioning event rather than a verdict on the future of crypto.

 

 

Source: https://e27.co/will-bitcoin-hold-its-us64500-line-in-the-sand-or-are-we-heading-straight-for-a-test-of-the-us63170-support-level-20260724/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author. The latest book is Web4: The Age of Autonomous Intelligence.

j j j