Analyst Explains: The Biggest Risk in Bitcoin Isn’t the Price It’s Something Else

The real reason for Bitcoin’s recent performance is not “loop theories,” but the quantum computing threat and debt-focused leverage risks (Digital Asset Treasures, DATs), said Charles Edwards of Capriole Investments.

A warning from leading macro analyst Charles Edwards has come as cryptocurrency markets debate why Bitcoin has beaten gold by 40%, while the currency markets have been baffled by how much of its value is underperforming. Speaking on the Coin Bureau Podcast, Edwards cited the “existential” risks that prevented Bitcoin from receiving a share of $115 trillion liquidity pie ahead of it.

Edwards said the one reason Bitcoin lags behind gold and stocks is that “the quantum computing threat has gone from being “theoretical” to becoming a “risk horizon”. This is the critical time for a period of 2025–2028 when it could be more likely that Bitcoin’s current cryptographic methods (ECC) would be compromised, according to ” Edwards”.

The analyst noted that “big companies like BlackRock have added “quantum risk” clauses to their ETF prospectuses, and figures such as Vitalik Buterin have warned on the subject, indicating that institutional investors are beginning to price in this risk.” Edwards also argued that Bitcoin needs an urgent code update (soft-fork) to make the network quantum-resilient, and that with concrete steps in this direction, Bitcoin could rapidly surpass gold.

The global money supply had reached $115 trillion, Edwards said “Gold was rising by taking advantage of this liquidity,” but Bitcoin under pressure from the debt burden accumulated through “Digital Asset Treasures” (DATs) were being put on hold.

Edwards noted that “a total of nearly 200 companies (DATs) like MicroStrategy have borrowed to buy Bitcoin, a situation similar to the pre-crash period of the 1920s.” A “leveraged cascade” (chain liquidation) in the Bitcoin price is a threat from increasing debt levels, which means that there will be ‘an extreme cascade’ of rising debts.

In response to the widespread demand for a halving cycle in the market, Edwards said ‘This is now dead four-year cycle. In a statement to investors, the analyst warned that Bitcoin is now more dependent on macro liquidity and institutional demand than’miner cycle’.

But if the quantum risk isn’t resolved this year, gold may still outperform Bitcoin. However, if the roadmap is agreed upon, Bitcoin’s ‘risk discount’ will go away and a massive rally will start. – ’.

*This is not investment advice.

Thanks for reading Analyst Explains: The Biggest Risk in Bitcoin Isn’t the Price It’s Something Else