Quantum Threat Becomes Key Narrative, Privacy Coin Sector Defies Trend with Capital Siphon

比推Pubblicato 2026-01-29Pubblicato ultima volta 2026-01-29

Introduzione

Quantum Threat Emerges as Key Narrative, Privacy Coins Defy Market Downturn with Capital Inflow Privacy coins like ZEC, XMR, and DASH have surged significantly since September 2025, outperforming the broader crypto market. ZEC rose from around $50 to over $700 in two months, a 12x return, despite a post-halving correction. Monero (XMR) climbed from $300 to a record $800, bolstered by its decentralized nature and real-world usage, even after being delisted from 73 exchanges. Dash also saw a 7x increase, peaking at $150 before settling around $62. A major catalyst is growing concern over quantum computing threats to Bitcoin. Although experts believe quantum computers cannot yet break Bitcoin's ECDSA algorithm by 2026, fears have driven institutional and whale investors toward privacy coins, which use zero-knowledge proofs and ring signatures to resist quantum attacks. Reports indicate large-scale fund shifts from BTC to privacy assets, with ZEC and XMR attracting significant hedging interest. Market dynamics and high-profile endorsements, such as from Arthur Hayes, have amplified the trend. Additionally, privacy coins are being used to launder stolen funds, with one day seeing $282 million in mixed Bitcoin transactions. While Bitcoin market remains stagnant around $85,000, privacy coins continue to benefit from both quantum anxiety and practical demand for anonymity. The sector's future may depend on broader market recovery and macroeconomic factors, including Fed policy and...

Author: Ma He, Foresight News

Original Title: Under the Quantum Threat, Are Privacy Coins About to Break the "Last Dance" Curse?

Privacy coins use zero-knowledge proofs, ring signatures, or coin mixing technology to ensure untraceable transactions. Against the backdrop of increasing global regulation, they have become the preferred choice for investors seeking refuge and privacy.

Starting from September 2025, the privacy coin sector began to break away from the broader market's slump and entered an accelerated upward trend.

Taking ZEC, the leading coin in the privacy sector surge, as an example, its price was around $50 in October 2025. Within just 2 months, it broke through $700, yielding a return of over 12 times.

This trend is not an isolated case but a sector-wide explosion.

On November 18th, after the ZEC halving event, which reduced the block reward from 3.125 coins to 1.5625 coins, the price experienced short-term fluctuations before starting to decline and hover erratically.

Monero (XMR), the "big brother" of privacy coins, also showed a strong performance. From around $300 at the end of 2025, it skyrocketed to a high of $800, setting a new historical record.

Unlike ZEC's halving-driven rise, XMR's increase relies more on its inherent decentralized nature and actual adoption rate. Despite being delisted from 73 exchanges previously, XMR's transaction volume grew against the trend, with a single-day mixing volume of stolen BTC reaching $282 million, proving the reliability of its privacy technology.

Another privacy coin, DASH, rose from nearly $20 to a high of $150, an increase of over 7 times, and has currently pulled back to $62.

Quantum Computing Threat and the Rise of the Privacy Narrative

The potential threat of quantum computing to Bitcoin became a significant catalyst for the surge in privacy coins from late 2025 to early 2026. Although experts generally believe that quantum computers cannot practically crack Bitcoin's ECDSA signature algorithm by 2026, this risk has already sparked market panic, driving capital away from BTC and towards privacy coins with better quantum resistance.

According to a report by Grayscale Research, although quantum computing is seen as a "false threat to the 2026 market," it amplified investors' concerns about exposed Bitcoin public keys in Q4 2025, leading institutional funds to reassess risk exposure and shift towards coins like ZEC and XMR. These privacy coins use zero-knowledge proofs and ring signature technology, which can better resist Shor's algorithm attacks and theoretically provide higher long-term security.

A CoinDesk report showed that the quantum upgrade discussed at the Bitcoin developer conference in December 2025 would take 5-10 years. During this window, whale investors moved hundreds of millions of dollars from BTC to privacy coins.

Secondly, market rotation and the amplification effect of capital inflows. In Q4 2025, the overall crypto market corrected, but privacy coins rose against the trend, attracting whales and large funds. BitMEX co-founder Arthur Hayes heavily invested in ZEC through the Maelstrom fund, calling it the "next BTC."

Additionally, multiple hacking incidents in 2025 (involving billions of dollars in theft) prompted funds to turn to privacy coins: stolen BTC was quickly converted to XMR, with a single-day mixing volume reaching $282 million. A CoinDesk report pointed out that 80% of privacy coins rose in 2026, with 14 out of 18 coins doubling in market capitalization.

Arthur Hayes warned that the "quantum ghost" would accelerate the privacy supercycle, predicting that ZEC and XMR would attract more hedging funds in 2026.

With the strong rise of privacy coins, some investors are happy while others are worried. Past market trends have often seen privacy coins gradually fade after their "last dance."

Wintermute stated that BTC's current price range shows fatigue, but the market structure is not bearish; instead, it is in a stalemate. The $85,000 support level has been tested multiple times—it is either a solid bottom or a trap waiting to be sprung. Although U.S. fund flows show net outflows and volatility continues to compress, this support level has held, indicating buying interest below (albeit mild). Gold is playing the role that Bitcoin should be playing. The stock market is waiting for earnings reports to validate valuation rationality. Bitcoin is stuck in "no man's land"—not weak enough to break support, nor strong enough to regain upward momentum. The macro environment is poised for a trending move, but the crypto market has been slow to follow.

This situation could change due to a reversal in ETF fund flows or shifts in the U.S. dollar's movement. If the Federal Reserve intervenes in the yen exchange rate and the dollar continues to weaken, it will become a clear catalyst for risk assets. If the "Magnificent Seven" tech stocks report better-than-expected earnings and the AI narrative continues to develop, it will drive the Nasdaq index higher, thereby boosting the crypto market. Conversely, if Powell sends hawkish signals or tariff conflicts escalate, the $85,000 support level will face severe tests. A 60-day consolidation period combined with such密集的事件风险, the market will eventually choose a direction.

If BTC's trend can stabilize and recover, privacy coins may perform well driven by the broader market.

Twitter:https://twitter.com/BitpushNewsCN

Bitpush TG Discussion Group:https://t.me/BitPushCommunity

Bitpush TG Subscription: https://t.me/bitpush

Original link:https://www.bitpush.news/articles/7607020

Domande pertinenti

QWhat is the main reason for the recent surge in privacy coins like ZEC and XMR according to the article?

AThe surge is primarily driven by concerns over quantum computing threats to Bitcoin's security, leading investors to shift funds to privacy coins which offer better quantum resistance through technologies like zero-knowledge proofs and ring signatures.

QHow much did ZEC's price increase from October 2025 to its peak, as mentioned in the article?

AZEC's price increased over 12 times, from around $50 in October 2025 to over $700 within two months.

QWhat event specifically impacted ZEC's price in November 2025, causing short-term volatility?

AZEC underwent a halving event in November 2025, which reduced the block reward from 3.125 to 1.5625 coins, leading to price fluctuations.

QWhy did XMR's value rise despite being delisted from many exchanges, as per the article?

AXMR's value rose due to its strong decentralized attributes and practical adoption, evidenced by increased transaction volumes, including a single-day mixing volume of $282 million for stolen BTC, proving the reliability of its privacy technology.

QWhat broader market condition is suggested as necessary for privacy coins to maintain their positive performance?

AThe article suggests that if Bitcoin's price stabilizes and recovers, privacy coins could perform well under the broader market's upward momentum.

Letture associate

Summary of Kevin Warsh's Past Remarks: How Will This Prospective 'New Head' Upend the Fed?

Kevin Warsh, nominated by President Trump to replace Fed Chair Powell, is poised to introduce sweeping reforms at the Federal Reserve. His agenda includes structural changes, advocating for lower policy rates, a fundamentally new approach to inflation, a significantly smaller balance sheet, safeguarding Fed independence, narrowing the Fed’s mandate, improving coordination with the Treasury, and reducing communication “noise” from policymakers. Warsh has criticized current monetary policy as “broken” and called for “fundamental regime change,” arguing that continuity is meaningless when the Fed has lost credibility. He believes interest rates should be lower and that a smaller balance sheet would help achieve that, describing the current one as “multiple trillions of dollars larger than necessary.” On inflation, he attributes its rise to cognitive errors at the Fed—including overreliance on flawed models, neglect of money supply, and blaming external factors rather than excessive government spending. He also suggests AI could lead to a structural decline in prices. He strongly defends Fed independence as its “most important asset” and warns against mission creep, which he says risks its core objectives and increases political vulnerability. He proposes closer coordination with the Treasury to align balance sheet and debt issuance plans, clarifying expectations for markets. Regarding communication, Warsh supports transparency but criticizes the current “cacophony of voices” and “forward guidance” that creates ambiguity. He has urged Fed officials to speak less frequently to avoid market confusion.

marsbit3 min fa

Summary of Kevin Warsh's Past Remarks: How Will This Prospective 'New Head' Upend the Fed?

marsbit3 min fa

Under Political Pressure, Is the Federal Reserve Still Independent?

Amidst political pressure from former President Trump and congressional scrutiny, Kevin Warsh, nominated as Federal Reserve chair, argued that public comments from elected officials on interest rates do not fundamentally threaten the Fed’s operational independence. Instead, he emphasized that the real risk to the Fed’s autonomy lies in its failure to control inflation, which could erode public trust. Warsh also cautioned against the Fed overstepping into fiscal or social policy domains beyond its mandate. His remarks come as the Fed faces external pressures, including a Justice Department investigation into a renovation project and persistent inflation above the 2% target, exacerbated by rising energy prices. Warsh stressed that the Fed’s focus on its core mission—price stability—is essential to maintaining its credibility and independence.

marsbit3 min fa

Under Political Pressure, Is the Federal Reserve Still Independent?

marsbit3 min fa

Bitmine Loads Up On 101,627 Ether In Record Post-December Buy

Bitmine Immersion Technologies significantly expanded its Ethereum holdings by acquiring 101,627 ETH in mid-April, marking its largest single-week purchase since December 2025. The company now holds nearly 5 million ETH, valued at approximately $11.5 billion, representing about 4.12% of all circulating Ether. Its goal is to reach 5% ownership. Of its total ETH, 3.33 million is actively staked, generating over $200 million in annualized revenue. Chairman Tom Lee stated that the company has increased its buying pace, believing Ethereum is nearing the end of a "mini-crypto winter." Bitmine also recently uplisted to the NYSE, improving its visibility among institutional investors.

bitcoinist10 min fa

Bitmine Loads Up On 101,627 Ether In Record Post-December Buy

bitcoinist10 min fa

Arbitrum Pretends to Be the Hacker, 'Steals' Back the Money Lost by KelpDAO

Title: Arbitrum Poses as Hacker to Recover Stolen Funds from KelpDAO Last week, KelpDAO suffered a hack resulting in nearly $300 million in losses, marking the largest DeFi security incident this year. Approximately 30,765 ETH (worth over $70 million) remained on an Arbitrum address controlled by the attacker. In an unprecedented move, Arbitrum’s Security Council utilized its emergency authority to upgrade the Inbox bridge contract, adding a function that allowed them to impersonate the hacker’s address and initiate a transfer without access to its private key. The council’s action, approved by 9 of its 12 members, moved the stolen ETH to a frozen address in a single transaction before reverting the contract to its original state. The operation was coordinated with law enforcement, which attributed the attack to North Korea’s Lazarus Group. Community reactions are divided: some praise the recovery of funds, while others question the centralization of power, as the council can upgrade core contracts without governance votes. However, such emergency mechanisms are common among major L2s. Despite the partial recovery, over $292 million was stolen in total, with more than $100 million in bad debt on Aave and remaining funds scattered across other chains. The incident highlights escalating security challenges in DeFi, with state-sponsored hackers employing advanced tactics and L2s responding with elevated countermeasures.

marsbit13 min fa

Arbitrum Pretends to Be the Hacker, 'Steals' Back the Money Lost by KelpDAO

marsbit13 min fa

iQiyi Is Too Impatient

The article "iQiyi Is Too Impatient" discusses the controversy surrounding the Chinese streaming platform IQiyi's recent announcement of an "AI Actor Library" during its 2026 World Conference. IQiyi claimed over 100 actors, including well-known names like Zhang Ruoyun and Yu Hewei, had joined the initiative. CEO Gong Yu suggested AI could enable actors to "star in 14 dramas a year instead of 4" and that "live-action filming might become a world cultural heritage." The announcement quickly sparked backlash. Multiple actors named in the list issued urgent statements denying they had signed any AI-related authorization agreements. This forced IQiyi to clarify that inclusion in the library only indicated a willingness to *consider* AI projects, with separate negotiations required for any specific role. The incident, which trended on social media with hashtags like "IQiyi is crazy," is presented as a sign of the company's growing desperation. Facing intense competition from short-video platforms like Douyin and Kuaishou, as well as Bilibili and Xiaohongshu, IQiyi's financial performance has weakened, with revenues declining for two consecutive years. The author argues that IQiyi is "too impatient" to tell a compelling AI story to reassure the market, especially as it pursues a listing on the Hong Kong stock exchange. The piece concludes by outlining three key "AI questions" IQiyi must answer: defining its role as a tool provider versus a content creator, balancing the "coldness" of AI with the human element audiences desire, and properly managing the interests of platforms, actors, and viewers. The core dilemma is that while AI can reduce costs and increase efficiency, it risks creating homogenized, formulaic content and devaluing human performers.

marsbit1 h fa

Trading

Spot

Futures