Galaxy Digital Debunks $9B Bitcoin ‘Quantum Fear’ Narrative Amid Market Bottom Signals
Galaxy Digital has addressed rumors that a major client’s $9 billion Bitcoin sale was driven by concerns about quantum computing...
Quick overview
- Galaxy Digital clarified that a major client's $9 billion Bitcoin sale was not motivated by concerns over quantum computing.
- The company's recent financial reports revealed significant losses, with a Q4 2025 net loss of $482 million.
- Despite fears about quantum threats, industry experts believe a significant risk to Bitcoin's encryption is still decades away.
- Galaxy CEO Mike Novogratz expressed optimism about the market's recovery, citing the potential impact of the US CLARITY Act on institutional confidence.
Galaxy Digital has addressed rumors that a major client’s $9 billion Bitcoin sale was driven by concerns about quantum computing. This clarification comes during a turbulent week for crypto, with technical sell-offs and regulatory news in the spotlight.
Galaxy Research: The $9B Whale Sale Was Not a ‘Quantum Exit’
After Galaxy Digital’s recent earnings call, rumors spread on social media and among institutions that the $9 billion Bitcoin trade was a way to reduce risk from possible future quantum threats.
Alex Thorn, Galaxy’s Head of Research, responded to these rumors in a post on X (formerly Twitter) on Tuesday. He said the client’s decision had nothing to do with cryptography concerns.
He added that although some people are talking about ‘Harvest Now, Decrypt Later’ (HNDL) theories, these ideas were not part of this particular sale.
Galaxy Digital Financial Performance (FY 2025)
The company revealed the trade at the same time as its latest financial reports, which showed a tough year for digital assets:
- Q4 2025 Net Loss: $482 million
- Full Year 2025 Net Loss: $241 million
- Assets Under Management: $12 billion (at year-end)
The Quantum Debate: Immediate Threat or Distant FUD?
Talk about quantum computing risks picked up in January 2026, when Jefferies strategist Christopher Wood made news by taking Bitcoin out of his recommended 10% portfolio allocation.
Wood said that the fast progress of Cryptographically Relevant Quantum Computers (CRQCs) poses a serious risk to Bitcoin’s ECDSA signature system.
However, many experienced people in the industry doubt that a ‘Q-Day’ is coming soon.
- Adam Back (Blockstream CEO): Estimated a 20 to 40-year horizon before quantum power can realistically crack Bitcoin’s encryption.
- BIP-360 Proposal: To proactively safeguard the network, developers are championing Bitcoin Improvement Proposal 360. This proposal introduces post-quantum signature options (P2QRH) for vulnerable addresses, allowing a soft-fork migration to quantum-resistant “locks” before the threat matures.
Novogratz: Bitcoin Below $74k Signals Market Bottom
The $9 billion sale helped push Bitcoin’s price down, with the coin dropping below $74,000 on Tuesday. Still, Galaxy CEO Mike Novogratz is optimistic and thinks the market is almost done clearing out excess leverage.
“We are likely approaching a cycle bottom,” Novogratz told Bloomberg. “The excess has been removed, and the industry is now looking toward structural catalysts rather than just price speculation.”
CLARITY Act: The Regulatory Catalyst for 2026
Much of the current market optimism depends on the US CLARITY Act. Although the bill was delayed in the Senate in January, many see it as the ‘missing link’ for building institutional confidence.
The CLARITY Act aims to:
- End Jurisdictional Wars: Finalize the divide between the SEC (securities) and CFTC (commodities).
- Regulate Stablecoins: Provide a federal framework for stablecoin yield products and 1:1 backing requirements.
- Modernize DeFi: Establish clear rules for tokenized equities and decentralized finance protocols.
Novogratz said that passing this law would give the industry the ‘legal rails’ it needs for new investment, which could help end the current downturn.
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