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Galaxy Digital clarifies $9 billion BTC sale amid quantum chatter
Galaxy Digital has denied that a recent $9 billion Bitcoin (BTC) sell-off executed for a high-net-worth client was motivated by fears about quantum computing. The clarification follows speculation across crypto circles that the whale’s decision was rooted in concerns over Bitcoin's long-term resistance to quantum attacks.
Company statement and context
Alex Thorn, head of research at Galaxy, took to X on Tuesday to refute claims that the trade was related to Bitcoin’s quantum resilience. The firm emphasized that the multibillion-dollar transaction was not driven by worries about quantum advances undermining Bitcoin’s cryptographic security.
Financial backdrop: Galaxy's recent results
The disclosure comes as Galaxy Digital released quarterly results showing a net loss of $482 million for Q4 2025 and a full-year loss of $241 million for 2025. The earnings call and subsequent reporting coincided with heightened market scrutiny after Bitcoin briefly slipped below $74,000, prompting fresh commentary about investor behavior and macro influences on the crypto market.
Quantum computing concerns and industry reactions
Concerns that a future quantum computing breakthrough could threaten public-key cryptography have circulated for years among cryptographers and asset managers. Such fears have occasionally influenced portfolio decisions, with some investors reassessing allocations to crypto assets that rely on ECDSA and similar signature schemes.
In January, Jefferies strategist Christopher Wood reportedly removed a recommended 10% Bitcoin allocation from his model portfolio, citing worries about advances in quantum computing. Yet not all experts agree this is an immediate risk. Blockstream CEO Adam Back said that practical threats from quantum computing to Bitcoin are likely decades away—he estimates at least 20 to 40 years before quantum systems could pose a meaningful danger.
BIP-360 and proposed post-quantum defenses
To proactively address future crypto threats, Bitcoin advocates and fund managers have promoted Bitcoin Improvement Proposal BIP-360. The proposal would add an optional post-quantum signature mechanism for addresses that might become vulnerable if quantum computing matures. BIP-360 aims to preserve Bitcoin’s long-term integrity by giving users a migration path to quantum-resistant address types.
Market impact, regulatory momentum, and recovery signals
Galaxy CEO Mike Novogratz told Bloomberg that recent price drops could be approaching a market bottom, though he emphasized that investors only recognize a bottom in hindsight. Continued progress on the U.S. market structure bill — the so-called CLARITY Act — could serve as a catalyst for renewed liquidity and improved market confidence.
Why the CLARITY Act matters
The CLARITY Act aims to delineate regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for crypto assets. Lawmakers and industry stakeholders see it as a potential first comprehensive framework for U.S. crypto markets. However, a Senate Banking Committee markup was delayed in January over disputes about tokenized equities, DeFi provisions, and rules around stablecoin yield rewards.
U.S. officials recently met with crypto and banking industry representatives to discuss how stablecoin yield might be addressed in the legislation — a key issue for institutional and retail market participants alike.
Takeaways for investors and the crypto community
The Galaxy clarification should calm some concerns that large-scale selling is driven by existential cryptographic risk. For traders and long-term holders, the immediate drivers remain macro conditions, liquidity, and regulatory developments such as the CLARITY Act. Meanwhile, the industry continues to study post-quantum options like BIP-360 to mitigate distant but non-zero technological threats to Bitcoin’s signature schemes.
As always, investors should monitor policy shifts, on-chain metrics, and institutional flows when assessing Bitcoin price risk. For now, Galaxy’s statement suggests that this particular $9 billion disposition was unrelated to quantum computing fears and more likely tied to broader portfolio or market considerations.
Source: cointelegraph
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