Kevin O'Leary, the "Shark Tank" investor and entrepreneur, warns that Bitcoin's latest plunge masks a deeper shift—institutions are now capping their Bitcoin exposure due to quantum computing risk. While O'Leary remains long on Bitcoin, he reveals that large capital allocators are limiting allocations to around 3%, citing concerns that future quantum computers could theoretically break the cryptographic security underpinning blockchain networks.
Quantum Threat: Distant but Already Shaping Institutional Behavior
In a recent post, O'Leary wrote: "Bitcoin just took another brutal correction… but something bigger is happening underneath." He recalled last October's market meltdown, when Bitcoin tumbled and most altcoins collapsed 80–90%, with many never recovering. Since then, institutions have become highly selective. "If you want 90% of the upside and volatility in crypto, you only need Bitcoin and Ethereum," O'Leary said, dismissing smaller tokens as "worthless" in the eyes of large capital allocators.
Despite maintaining his own long Bitcoin position, O'Leary acknowledges that quantum computing is the new wildcard. Theoretically, a sufficiently advanced quantum computer could break Bitcoin's elliptic curve cryptography (ECDSA). Though still speculative and likely years away, O'Leary argues the uncertainty alone is enough to keep institutional exposure at roughly 3% until more clarity emerges. "They'll stay cautious, they'll stay disciplined, and they'll wait—they need technological reassurance, not just macro conditions," he noted.
Bitcoin Technicals: Sideways Near $68K, Critical Floor at $60K
On the daily BTC/USDT chart, Bitcoin hovers around $68,100 after a sharp cascade from the mid-$90,000s. A capitulation wick near $60,000 marked a local bottom, followed by a modest relief bounce, but price action has stalled below the $70,000 psychological level.
The Balance of Power indicator sits at -0.58, signaling sellers retain short-term control. Meanwhile, the Chaikin Money Flow (20) remains slightly negative at -0.06, indicating weak capital inflows and a lack of strong accumulation. Immediate resistance lies near $70,000–$72,000, where recent candles have repeatedly rejected upside attempts. A break above that zone could open the door toward $75,000. On the downside, $65,000 stands as initial support, with the $60,000 capitulation low acting as a critical structural floor. A loss of that level would likely intensify bearish pressure.