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The rapid advancement of quantum computing poses a serious threat not only to cryptocurrencies but to the entire encryption system, including banking. However, experts warn that the cryptocurrency market might be the first sector to suffer from this transformation. As predictions of a 'Q-Day' approach, the slow governance processes of cryptocurrencies, rather than their cryptography, could become the biggest obstacle to defending against quantum attacks. Quantum Xchange CEO Eddy Zervigon has compared cryptocurrencies to "canaries in the coal mine," stating that the first successful quantum-powered cyberattack is likely to target decentralized blockchain networks. While a cryptographically relevant quantum computer capable of breaking the elliptic curve cryptography underlying Bitcoin's signatures and banking security does not yet exist, work by giants like Microsoft, IBM, and Google suggests the threat is nearer than previously thought. The industry consensus estimates such a computer could emerge around 2029. Supporting this view, recent Google research indicates the number of physical qubits needed to break the cryptographic systems protecting Bitcoin and Ethereum has decreased by about 20 times compared to prior estimates, highlighting the accelerated danger. Zervigon concludes that Bitcoin's greatest risk lies not in its current cryptographic system, but in the slow pace of implementing major network upgrades.

A critical week has begun for Bitcoin and altcoins as markets await the Fed's July decision. While the Fed is widely expected to keep rates unchanged, Chairman Jerome Powell's remarks are anticipated to significantly impact cryptocurrencies. In this climate, BTC options traders have notably reduced their short-hedging positions ahead of the Fed announcement. Analysts at Glassnode observed that the put-call ratio, which was 0.76 at the end of June indicating downside protection, has dropped sharply to approximately 0.52. This plunge suggests investors are scaling back on insurance against a potential correction and shifting their focus back to bullish strategies. Data shows large investors are actively accumulating call options with a $70,000 strike price, reinforcing market expectations for a short-term upward price move for Bitcoin. However, analysts warn that if the Fed signals a different policy path than markets anticipate, Bitcoin's volatility could surge rapidly due to the reduced protective positioning.

For the first time, strategy, the largest corporate holder of bitcoin led by Michael Saylor, conducted a $25 million buyback of its own preferred STRC shares last week, as revealed in its weekly SEC filing. Concurrently, the company raised approximately $544.5 million through the issuance and sale of additional common MSTR shares, which have lost nearly 85% of their value over the past year. Strategy also bolstered its dollar reserves by $525 million, which Saylor stated now covers STRC dividend payments for over two years. Saylor explained that the STRC buyback would be funded through the sale of MSTR shares and bitcoin, depending on market conditions, with the goal of supporting STRC's trading price around $100. The report includes a standard disclaimer noting the volatile nature of cryptocurrencies.

Cryptocurrency ETF investors started the week with strong purchases but ended with a significant market exit. From July 20-24, U.S. spot Bitcoin ETFs attracted $33.79 million in net inflows, while Ether ETFs garnered $103.90 million—approximately triple the Bitcoin total. XRP ETFs saw $8.15 million, and Solana products attracted $7.2 million. Hype (HYPE) ETFs experienced an outflow of $8.61 million. Bitcoin ETFs opened with three strong sessions but faced major outflows on Thursday ($225M) and Friday ($240M), reducing the net weekly gain. IBIT (BlackRock) and GBTC (Grayscale) recorded outflows, while ARKB (ARK 21Shares) and Bitcoin Mini Trust (Grayscale) led inflows. The weekly Bitcoin inflow fell 55% from the prior week. Ether ETFs demonstrated stronger, consistent demand throughout the week, highlighting sustained institutional interest driven by its utility in DeFi, stablecoins, and corporate treasury strategies. Altcoin ETF flows were more muted, with XRP and Solana seeing mixed results and HYPE ETFs facing continued outflows. The week's two-phase pattern reflected shifting risk sentiment, with early crypto demand giving way to caution amid concerns over AI spending reports and rising oil prices. Analysts note that low-cost crypto ETFs are increasing competitive pressure on traditional high-margin crypto exchanges.

Bitcoin experienced significant volatility on Monday, with its price failing to hold above $65,500 after three unsuccessful attempts, leading to a drop to $64,336. This price action triggered the liquidation of over $75 million in leveraged positions within 24 hours, with nearly $45 million in short positions and around $30 million in long positions being wiped out. Initial price surges were linked to easing Middle East tensions, but the upward momentum stalled due to weak inflows into spot Bitcoin ETFs, ongoing regulatory uncertainty surrounding the CLARITY Act, and a decision by a major institutional player (Strategy/MSTR) not to increase its Bitcoin holdings despite raising new capital. Despite the turbulence, Bitcoin's market cap remained around $1.3 trillion, and the cryptocurrency is poised to end July in positive territory after starting the month below $59,000.