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Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt.
GM!
Today's top news:
Crypto majors slightly green while stocks hit new ATHs; BTC +0.5% at $64.1k
BTC ETF inflows reach $380M in first 2 sessions this week
Justin Drake and others propose EIP-8361 to curb ETH inflation
Cloudflare launched Cloudflare Wallets geared towards AI agent payments
CASHCAT soars 40% to $96M leading broad Robinhood Chain rebound
CNBC host Jim Cramer said he's selling his Bitcoin, this time over fears of quantum computing.
The decision came on air, after Cramer interviewed IBM CEO Arvind Krishna and asked whether quantum computers could eventually crack the cryptography protecting his coins. "I think that you should give yourself three or four years," Krishna replied, "and at that point, I would get rather paranoid about it." Cramer didn't wait. "Arvind Krishna knows quantum incredibly. He knows Bitcoin and quantum. And I'm going to sell mine," he said, adding that Ethereum might be "even worse." Bitcoin rose about 1.6% the day he announced it.
Jim Cramer Is Selling His Bitcoin Over Quantum Threat—Crypto Twitter Is Thrilled
Crypto traders greeted the news with open glee, invoking the "inverse Cramer" trade, the running joke that the reliable move is the opposite of whatever he recommends. "Thank you Jim!" read one top reply. Of course, Cramer has a history of selling the bottom. Cramer said he'd dumped all his crypto and wouldn't touch it "in a million years" in December 2022 with Bitcoin near $16,800, and it gained more than 400% over the next three years.
But Cramer's poor track record aside, the quantum threat is a very real one for crypto. AI was credited with the recent Coldcard exploit, which has passed $100M in losses. And it came after a string of DeFi hacks and exploits totalling well over $300M. The hard part to fathom—this is the worst these models are ever going to be.
With that said, the silver lining is a major security incident like the Coldcard one may be exactly what crypto teams needed to take the quantum threat seriously and begin taking action. Protocols like ZEC went on the offensive and used frontier AI to find exploit vectors in their own cryptography (and they found them, and patched them). ZEC sold off of course, but has since rebounded swiftly. Other protocols should follow their lead, and ASAP.
So Jim Cramer is right to be concerned. Will he end up selling the bottom for the 2nd cycle in a row? We will find out soon enough…
