Bitcoin’s Panic: Institutions Flee as Quantum Threat Looms!

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The founder of Capriole Investments, a man of keen insight, has observed that Bitcoin now bears the weight of the most relentless selling by institutions since the dawn of time. It’s as if the market itself has drawn a deep breath, holding its collective nerve against the tide of cold, calculating hands.

Bitcoin Is Observing An Exit From Institutional Entities

In a new post on X, Capriole Investments’ Charles Edwards, a man whose words carry the gravity of a storm, has laid bare the latest trend in the behavior of those who once danced with Bitcoin. To track their movements, Edwards has used the spot ETFs and treasury companies as a compass, though one might wonder if they’re merely chasing shadows.

Spot ETFs, those shiny, regulated vehicles, allow institutions to dabble in Bitcoin without getting their hands too dirty. Similarly, treasury companies, with their crypto-laden balance sheets, are like farmers tending to a field they don’t fully understand. Yet here we are, watching these titans of finance retreat, their fear palpable as a summer drought.

Here is the chart, a jagged line of despair, showing how the monthly rate-of-change (ROC) in the combined ETF and treasury holdings has fluctuated over the years. It’s a tale of peaks and valleys, but lately, the valleys have grown darker, deeper, and more ominous.

As displayed in the above graph, the monthly ROC for these entities has plunged into the negative, a sign that capital is fleeing like a frightened herd. Treasury companies, still clinging to the edge of positivity, are held aloft by the steady hand of Strategy, while spot ETFs have sunk so low, they’re practically swimming in red.

In the same chart, Edwards has also attached the data of another indicator: Net Institutional Buying. This metric, a barometer of power, compares the combined ROC in the balance of the spot ETFs and treasury companies against the Bitcoin being mined by the blockchain’s validators. It’s a battle of wills, and the validators are losing.

During the January recovery, this indicator saw a brief turn to green, implying that institutional entities were accumulating faster than miners could produce new supply. But now, with the capital exit, the Net Institutional Buying has plummeted to a highly negative value of -319%. A number so low, it’s as if the market itself has thrown in the towel.

Such a low level in the indicator hasn’t been witnessed before in the cryptocurrency’s history. “Most aggressive institutional net selling of Bitcoin EVER this last week,” noted the Capriole founder, his words dripping with the urgency of a man who’s seen the end times coming.

As for the reason behind this shift, Edwards points to the Quantum threat-a ghost in the machine, a specter that could break into old, vulnerable BTC wallets. The analyst’s research piece last week, a warning cry, suggests this risk could “discount” the value of the digital asset. One might say, “Why not just sell everything and hide under the bed?”

“When you consider the statistics for when Q-Day is expected to occur, the rational investor is discounting the fair value of Bitcoin by 20% today,” explained Edwards. Below is a chart, a grim forecast, showing how this discount will rise each year the BTC network isn’t upgraded against the Quantum threat. It’s a race against time, and the clock is ticking louder than a rattlesnake.

BTC Price

At the time of writing, Bitcoin is floating around $62,300, down nearly 7% in the last seven days. A number that once seemed invincible now looks like a flickering candle in a storm. The market, ever fickle, has turned its back on the digital gold, leaving it to shiver in the cold.

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2026-02-25 06:11