A new report from Quantus warns quantum computing progress is outpacing crypto industry planning, threatening over $2 trillion in digital assets. Lost Bitcoin wallets face permanent exposure, as migration deadlines loom.
U.S. stocks closed lower overnight as investors turned more defensive under a three-part pressure mix: rising oil prices tied to tensions around the Strait of Hormuz and the Red Sea, renewed inflation and rate worries in the bond market, and growing concern that big AI companies are spending faster than cash flow can support. Brent crude climbed above $96 a barrel and WTI approached $88, both reaching six-week highs. At the same time, the 30-year U.S. Treasury yield rose to about 5.14% and stayed above 5% for a 13th straight session, reviving talk of “bond vigilantes” as investors demand higher compensation to hold long-term debt. The earnings backdrop added another layer of stress. Alphabet and Tesla both reported revenue above expectations, yet each saw free cash flow turn negative while raising or defending heavy investment plans, triggering after-hours share declines. Market leadership continued to narrow toward AI infrastructure names tied to chips, servers, networking and power equipment. AMD, Broadcom and Super Micro Computer outperformed, while parts of software and several megacap technology names weakened. Investors are now watching a packed calendar that includes the European Central Bank decision, U.S. jobless claims, AMD’s Advancing AI event and Intel’s earnings call.
Bitget UEX’s July 23 market note pointed to a risk-off tone spreading across assets after U.S.-Iran tensions pushed crude higher and lifted expectations for a Federal Reserve rate hike in September. CME’s FedWatch tool showed the probability of at least one hike before the September meeting nearing 80%, a backdrop that supported safe-haven demand for gold and, to a lesser extent, the dollar while weighing on risk assets. In commodities, WTI and Brent both advanced sharply, and spot gold and silver also firmed. In crypto, BTC slipped to about $66,199 and ETH held near $1,937, while total crypto market capitalization fell to roughly $2.33 trillion. Bitcoin spot ETFs still recorded a seventh straight day of net inflows, though the pace slowed. The report also highlighted a liquidation cluster above current BTC prices, suggesting a move through $66,500 could trigger short covering. U.S. equities closed mixed to lower, with the Nasdaq under the most pressure. Semiconductor names outperformed, but software and parts of consumer tech lagged. Bitget UEX said strong revenue from Alphabet and Tesla did not settle investors, as higher capital spending and negative free cash flow sharpened concerns about the pace of cash burn. The note also reviewed earnings from Texas Instruments, ServiceNow and IBM, and flagged several market catalysts on the calendar, including Intel earnings, comments from Trump, and AMD’s Advancing AI event.
IBM reported second-quarter results on July 23, with revenue rising just 1% year over year to $17.2 billion and adjusted earnings per share coming in at $2.93, both below expectations. The company also lowered its full-year revenue growth forecast, revising guidance from “more than 5%” to a range of 4% to 5%. A sharp drop in Z series mainframe sales weighed on the quarter, with revenue from that segment falling 42% from a year earlier and dragging infrastructure revenue down 7%. Software was a relative bright spot, posting 5% year-over-year growth. Despite the weaker results and the lower annual outlook, IBM shares rose about 3% in after-hours trading. BlockBeats said the move came after the company had already issued an earnings warning a week earlier, which appears to have tempered the market reaction to the report.
Google Quantum AI's new whitepaper says breaking Bitcoin only needs 1,200 logical qubits—20x lower than prior estimates—with quantum hardware expected by 2033. The real crisis is not physics but Bitcoin's conservative governance, as anti-quantum upgrades would halve throughput and triple fees, with consensus potentially taking a decade.
IBM lowered its full-year revenue growth forecast to 4% to 5% after reporting second-quarter results on July 22 Eastern Time, citing weaker demand for mainframes and related system software. The company had previously guided for growth above 5%. In the second quarter, IBM posted revenue of $17.2 billion, up about 1% from a year earlier, while mainframe sales in its infrastructure unit fell 42% as the current product cycle neared its end. IBM said enterprise spending is shifting toward AI hardware, adding pressure to its traditional hardware and software businesses. The company is responding with a faster cost-saving plan that includes cutting third-party technology spending, improving supply chain management, and streamlining administrative functions. Chief Financial Officer Jim Kavanaugh said IBM still expects full-year free cash flow to increase by about $1 billion from last year. The report also noted investor attention on whether generative AI tools could disrupt traditional software business models, with recent market discussion around Starbucks potentially replacing IBM software with internally developed tools.
Trump says US government may take equity in top AI firms as early as this week. OpenAI's Sam Altman proposed a 'Public Wealth Fund' to distribute returns to citizens. Critics warn of lost independence.
IBM introduced its 0.7nm Nanostack architecture, saying the design can pack nearly 100 billion transistors on a single chip and could reach mass production in as little as five years.
