Bitcoin is facing resistance just above $70,000, but the bulls have kept up the pressure, increasing the possibility of a rally to $74,508.
Circle Deploys USDC and CCTP on Morph Layer-2 Network
Timothy Morano
Mar 11, 2026 15:11
Circle launches native USDC and Cross-Chain Transfer Protocol on Morph L2, adding another Ethereum scaling solution to its growing multichain infrastructure.
Circle has expanded USDC’s footprint to Morph, a payments-focused Ethereum layer-2 network, bringing both native stablecoin support and Cross-Chain Transfer Protocol infrastructure to the platform. The integration marks another addition to Circle’s aggressive multichain expansion strategy as USDC’s market cap sits at $78.72 billion.
Morph positions itself as a settlement layer optimized for everyday financial activity—payments, remittances, and consumer DeFi applications. The L2 now gains access to USDC without relying on wrapped token bridges, a meaningful upgrade for developers building payment rails.
What’s Actually Live
The deployment includes native USDC issuance with a mainnet contract address at 0xCfb1186F4e93D60E60a8bDd997427D1F33bc372B. More importantly for builders, CCTP enables USDC transfers between Morph and other supported chains without the security overhead of traditional bridges. Developers can choose between Standard Transfer and Fast Transfer modes depending on speed requirements.
Day-one integrations include Bitget, Bulba, and Stargate—giving the network immediate liquidity access points. Circle Mint remains available for institutional on/offramps, though it’s restricted to qualified businesses.
Timing and Context
This launch comes during a busy period for Circle. The company has issued over 8 billion USDC since February 2026, according to recent reports, reflecting sustained demand for dollar-denominated digital assets. Circle’s stablecoin adoption continues outpacing the broader crypto sector.
For Morph specifically, USDC integration creates the foundation for DeFi activity that requires stable settlement. Trading pairs, lending protocols, and liquidity pools typically need a reliable dollar proxy—and USDC’s regulatory positioning (Circle maintains licenses across multiple jurisdictions with monthly reserve attestations by a Big Four firm) makes it the default choice for compliance-conscious platforms.
Practical Implications
The real test comes from actual usage patterns. Payments-focused L2s have struggled to differentiate themselves from general-purpose rollups, and Morph’s success will depend on whether its target users—merchants, remittance services, fintech applications—actually show up.
CCTP availability does solve a genuine friction point. Moving stablecoins between chains without wrapped assets eliminates a category of bridge risk that has cost users billions in exploits over the years. Whether that’s enough to drive meaningful adoption on a newer L2 remains an open question.
Developers can access integration documentation through Circle’s developer portal for both USDC and CCTP contracts.
Image source: Shutterstock
Bitcoin Sees Modest Relief as US CPI Inflation Avoids Surprises
Bitcoin (BTC) broke back above $70,000 around Wednesday’s Wall Street open as US inflation data soothed anxious markets.
Key points:
-
Bitcoin bounces around a narrow range as US inflation data offers a modest tailwind.
-
Oil prices stay lower as an emergency release of 400 million barrels is confirmed.
-
BTC price expectations focus on future liquidations in the mid-$60,000 zone.
Bitcoin edges higher as CPI matches expectations
Data from TradingView showed BTC price action eking out modest gains, while failing to match local highs from the day prior.
The February print of the US Consumer Price Index (CPI) was in line with expectations at 2.4% year-on-year, per data from the Bureau of Labor Statistics (BLS).
“Over the last 12 months, the all items index increased 2.4 percent before seasonal adjustment,” it confirmed in an official statement.
This was a relief for risk assets already on edge over geopolitical instability and its potential impact on inflation. The Middle East conflict and global oil supply squeeze, however, were likely only to be truly reflected in March’s inflation data.
“The market will now await March’s data,” trading resource The Kobeissi Letter thus wrote in a response on X.
Other recent inflation gauges missed anticipated levels both to the upside and downside, making for a shaky overall picture of inflationary forces even before events in Iran.
Oil, a key risk factor for CPI going forward, stayed below the $90 mark on the day as the International Energy Agency (IEA) approved the emergency release of 400 million barrels — the largest such release ever recorded.
Trader eyes BTC price “breakout upwards” in March
With price still rangebound, Bitcoin market participants chose not to bet big up or down.
Related: Bitcoin faces ‘highly volatile’ setup as bulls eye return to $80K by month-end
“Very simple; buy the lower bounds, sell the higher bounds,” trader, analyst, and entrepreneur Michaël van de Poppe told X followers.
“I still think we’ll see that breakout upwards in this month to test higher grounds, but if not, I’m a buyer on lower levels.”
Trader Lennaert Snyder eyed downside liquidity for a potential local low, suggesting that this could come at around $65,000.
$BTC is compressing pre-CPI.
Bitcoin swept ~$71,563 liquidity and rejected like I mentioned yesterday.
I’m already in some shorts, and I’m willing to add if we get a MSB by losing the ~$69,268 low.
My short target will be the liquidity at ~$65,957. Letting 10% open for a… pic.twitter.com/DN3rb9lTha
— Lennaert Snyder (@LennaertSnyder) March 11, 2026
Data from monitoring resource CoinGlass put 24-hour crypto market liquidations at $240 million, with short positions accounting for a larger slice of the total.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
AAVE Price Prediction: Targets $131-137 by Mid-March Amid Technical Recovery
Luisa Crawford
Mar 11, 2026 14:39
Aave (AAVE) eyes $131-137 targets as analysts project breakout potential despite current bearish momentum. Technical indicators show mixed signals with key resistance at $118.26.
AAVE Price Prediction Summary
• Short-term target (1 week): $118-122
• Medium-term forecast (1 month): $131-137 range
• Bullish breakout level: $118.26
• Critical support: $109.88
What Crypto Analysts Are Saying About Aave
While specific analyst predictions from major KOLs are limited in recent trading sessions, several technical analysts have provided compelling AAVE price prediction targets for March 2026.
According to recent analyst reports, Terrill Dicki noted that “AAVE trades at $109.87 amid bearish momentum, but analysts eye $137 breakout potential,” setting a target of $137. This aligns with CoinCodex projections, which forecast “AAVE is expected to reach a price of $131.92 by Mar 15, 2026.”
Earlier technical analysis from Terrill Dicki suggested that “AAVE trades at $115.90 with neutral RSI at 45.89. Technical analysis suggests potential rally to $135-140 range, but must break $122.81 resistance first,” indicating consistent bullish sentiment among technical analysts.
On-chain data from major analytics platforms continues to support these optimistic projections, with trading volume maintaining healthy levels at $10.9 million on Binance spot markets.
AAVE Technical Analysis Breakdown
AAVE’s current technical picture presents mixed signals that require careful analysis for accurate price prediction. Trading at $113.33, the token shows a modest 1.74% daily gain but remains constrained by several technical factors.
The RSI reading of 46.77 places AAVE in neutral territory, suggesting neither overbought nor oversold conditions. This neutral RSI provides room for upward movement without immediate selling pressure concerns.
However, the MACD histogram at 0.0000 indicates bearish momentum continues to persist, creating headwinds for immediate price appreciation. The convergence of MACD lines suggests a potential trend change may be developing.
Aave’s position within the Bollinger Bands shows interesting dynamics. With a %B position of 0.4628, AAVE trades closer to the middle band ($113.99) than either extreme, indicating balanced market sentiment. The upper Bollinger Band at $122.50 represents a key technical target for bullish momentum.
Moving average analysis reveals AAVE trading below most significant timeframes. The 50-day SMA at $124.16 and 200-day SMA at $198.79 highlight the longer-term downtrend that needs reversal for sustained upward movement.
Aave Price Targets: Bull vs Bear Case
Bullish Scenario
The bullish Aave forecast centers around breaking the immediate resistance at $115.79, which would open the path toward the strong resistance level at $118.26. Successfully clearing this barrier could trigger momentum toward analyst targets of $131-137.
Key technical confirmation for the bull case requires:
– RSI breaking above 50 to confirm momentum shift
– MACD histogram turning positive
– Volume expansion above the current $10.9 million daily average
– Price reclaiming the 20-day SMA at $113.99 as support
If these conditions align, AAVE price prediction models suggest potential for testing the upper Bollinger Band at $122.50 within the next week, followed by the analyst targets of $131-137 by mid-March.
Bearish Scenario
The bearish case for AAVE centers on the failure to hold immediate support at $109.88. A break below this level could accelerate selling toward strong support at $106.44, representing a potential 6% downside from current levels.
Risk factors include:
– MACD remaining in bearish territory
– Failure to reclaim moving average resistance
– Broader crypto market weakness
– DeFi sector rotation concerns
A breakdown below $106.44 could extend the decline toward the lower Bollinger Band at $105.49, representing approximately 7% downside risk.
Should You Buy AAVE? Entry Strategy
Based on current technical levels, strategic entry points for AAVE present several opportunities:
Conservative Entry: Wait for a successful test and hold above $115.79 resistance, confirming bullish momentum before entering positions.
Aggressive Entry: Current levels around $113.33 offer reasonable risk-reward, with tight stop-loss placement below $109.88 support.
DCA Strategy: Scale into positions between $109-113 range, taking advantage of any volatility within this consolidation zone.
Risk management remains critical given AAVE’s daily ATR of $8.58, indicating significant intraday volatility. Position sizing should account for this volatility with stop-losses placed beyond the daily average true range.
Conclusion
The AAVE price prediction for March 2026 suggests cautious optimism, with technical analysts targeting $131-137 levels despite current mixed signals. The convergence of multiple analyst forecasts around these levels provides confidence in the medium-term bullish outlook.
However, immediate price action depends on breaking the $118.26 resistance level and confirming the shift in MACD momentum. The neutral RSI provides room for upward movement, while healthy trading volumes support potential breakout scenarios.
Traders should monitor the key levels outlined above, with particular attention to how AAVE responds at the $115.79 immediate resistance. A successful break could validate the bullish Aave forecast, while failure may extend the current consolidation phase.
Disclaimer: Cryptocurrency price predictions are speculative and based on technical analysis. Digital asset markets are highly volatile and unpredictable. Always conduct thorough research and consider your risk tolerance before making investment decisions.
Image source: Shutterstock
Wells Fargo Files Trademark for ‘WFUSD’ Crypto Services Platform
US banking giant Wells Fargo has filed a trademark application covering a wide range of cryptocurrency trading, payments and blockchain software services.
A filing submitted to the US Patent and Trademark Office (USPTO) on Tuesday seeks protection for the name “WFUSD.” The application is currently awaiting assignment to an examining attorney, according to official trademark records.
The filing outlines a broad list of potential products and services linked to digital assets, including “cryptocurrency trading services; cryptocurrency exchange services; cryptocurrency payment processing; financial brokerage services for cryptocurrency trading; electronic transfer of virtual currencies.”
The trademark also covers software tools designed for blockchain ecosystems. The application lists downloadable software for staking digital assets, accessing non-fungible tokens (NFTs), managing crypto wallets and executing digital asset trades.
Related: Western Union’s ‘WUUSD’ trademark hints at crypto offerings
Wells Fargo filing includes staking and tokenization
Other services mentioned in the filing include cryptocurrency payment processing, electronic transfers of virtual currencies and financial data feeds providing price information to blockchain-based smart contracts.
In addition to trading infrastructure, Wells Fargo’s trademark application references software-as-a-service platforms for tokenizing assets, verifying blockchain transactions and enabling cryptocurrency staking operations. The filing also includes authentication services and blockchain-based data transmission tools used in decentralized applications.
While trademark filings do not guarantee a product launch, companies often use them to secure branding for potential future offerings.
Wells Fargo is a prominent American multinational financial services company and one of the “Big Four” US banks.
Related: South Korean bank stocks surge on stablecoin trademark filings
Banks ramp up stablecoin push
The new trademark filing comes after several major US banks, including JPMorgan, Bank of America, Citigroup and Wells Fargo itself, reportedly discussed a joint stablecoin project in 2025.
Earlier this year, Fidelity Digital Assets also launched the Fidelity Digital Dollar (FIDD), a 1:1 US dollar-pegged, fully collateralized stablecoin on the Ethereum blockchain.
Magazine: Bitcoin may take 7 years to upgrade to post-quantum — BIP-360 co-author
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
XRP Is Forming a Chart Pattern That Last Led to a 1,500% Price Rally
XRP’s (XRP) weekly price chart is starting to resemble a technical pattern that previously marked a major cycle low and preceded a sharp upside reversal.
Key takeaways:
-
XRP’s weekly chart fractal resembles the 2017 cycle low before a 1,577% surge.
-
An XRP price breakout requires a sustained move above the $2 resistance zone.
-
Declining exchange balances indicate XRP accumulation.
XRP fractal hints at a massive price rally ahead
A long-term fractal comparison between the 2017-2018 and 2024-2026 cycles suggests that XRP’s sharp sell-off from $3.66 multi-year highs mirrors a pattern that formed a price bottom, before a sharp reversal.
Related: XRP holders face $50B in unrealized losses as it trades below $1.40
On the weekly chart, XRP’s drop to $1.10 resembles a retest of the lower trendline of a symmetrical triangle from 2017 when the price dropped to $0.12, marking the local bottom.
Commenting, crypto analyst Javon said, “There is potential we see this overall run unfold in an identical manner,” adding:
“Doing so means that right now is only a temporary pullback before a move well above the $20 mark.”
In 2017, XRP consolidated inside the triangle as leverage reset, eventually breaking above the triangle’s upper trend line and rallying 1,577%.
Applying this framework, XRP bulls will be required to push the price above the $1.78-$2.30 resistance to confirm a sustained upward breakout.
Note that this is where the upper trendline of the triangle at $2, the 100-week simple moving average (SMA), and the 50-day SMA converge.
XRP’s UTXO realized price distribution (URPD) data shows large supply clusters that remain above the spot price. The $2 level accounts for 3.6% of the XRP supply, and $1.80 comprises 3.15%, forming heavy overhead resistance.
As Cointelegraph reported, buyers will have to break and sustain the XRP price above the downtrend line of the descending channel pattern at $2 on the daily chart to signal a long-term trend change.
XRP supply on exchanges continues downtrend
XRP’s multi-exchanges daily depositing/withdrawing transactions delta, a metric that tracks the net number of XRP transfer transactions across 15 major crypto exchanges, has dropped to record lows, according to data from CryptoQuant.
“When the metric declines, it suggests that more investors are withdrawing XRP into external wallets,” CryptoQuant analyst Amr Taha said in a QuickTake analysis, adding:
“This behavior often reflects accumulation and long-term confidence.”
This was echoed by fellow analyst Darkfost, who said the “number of XRP withdrawal transactions on Binance has shown several sudden spikes in recent days.”
This includes more than 14,000 withdrawal transactions from Binance on March 6, as shown in the chart below.
This indicates investors are “accumulating and then choosing to transfer their tokens to private wallets rather than keeping them on the exchange,” Darkfost added.
As a result, XRP balance on exchanges has dropped to 12.9 billion on Wednesday, levels last seen in May 2021.
Meanwhile, outflows from US-based spot XRP ETFs eased after Goldman Sachs emerged as the largest ETF holder, signalling institutional confidence in XRP’s long-term potential.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Republicans Could Hold Up Housing Bill Over CBDC Ban
Republicans in the US Congress want to ban any possibility of a central bank digital currency (CBDC). To do so, they’re threatening progress on a bipartisan housing bill.
A group of Republican members of the US House of Representatives wrote a letter dated March 6, expressing the “dire need to prohibit a Central Bank Digital Currency from ever happening in the United States.”
The letter cited familiar arguments claiming a CBDC would threaten financial privacy and grant the US Federal Reserve unprecedented financial surveillance powers.
Critics question why Republicans are so eager to ban a CBDC, particularly as other global economic centers like the European Union and China develop their own digital forms of money. Still, the Republicans are ready to pull support from a bipartisan housing bill to get their way.
Republicans hang CBDC ban on 21st Century ROAD to Housing Act
Twenty-eight Republican representatives signed a letter to House Speaker Mike Johnson. In it, they noted that the 21st Century ROAD to Housing Act, a bill making its way through the Senate Banking Committee, contained a provision that would ban CBDCs.
But the lawmakers said it wasn’t strong enough. The ban would sunset in 2030, they noted, adding that the new language does not prohibit the Fed from studying a CBDC, which a bill introduced last year by Minnesota Rep. Tom Emmer sought to block.
The representatives demanded that both provisions be removed in the Senate before the bill reaches the House, claiming that a “prohibition on a Central Bank Digital Currency must be permanent.” If not, they threatened the success of the housing bill:
Otherwise, we will do everything to ensure that the 21st Century ROAD to Housing Act is dead-on arrival.”
Republican Representative Anna Paulina Luna said, “This will probably get nasty so I am telling everyone now. We would appreciate your air support on this.”
This move puts a still-niche and relatively unknown monetary question onto a bill that would at least nominally address concerns over housing affordability in the US.
According to a June 2025 survey from fintech firm Aevi, 61% of Americans haven’t even heard of a CBDC. The number is even higher among older respondents, with over 70% of 55- to 64-year-olds having never heard of one.
Meanwhile, housing costs in the US are getting higher. Data from the Fed and the S&P/Case-Shiller Home Price Index collated by LongtermTrends shows that a typical single-family home currently costs 7.14 times the median annual household income.
This is the highest home price-to-median household income ratio on record going back to the late 1940s, higher than at the height of the 2006 housing bubble.
Part of this is due to a supply squeeze. Homebuilding crashed after the 2008 financial crisis. This has continued to decline during the second Trump administration.
Related: US Bitcoin reserve still has no plan to stack sats
The new, bipartisan 21st Century ROAD to Housing Act contains several proposals to make building new housing easier and therefore cheaper. This includes expedited environmental reviews and increased Federal Housing Administration family loan limits.
“The package includes the vast majority of the Senate’s unanimously supported ROAD to Housing Act, incorporates bipartisan housing ideas from the House, and takes a good first step to rein in corporate landlords that are squeezing families out of homeownership,” Senator Elizabeth Warren said in a statement.
The presidential administration has already signaled its support of the bill, including a ban on CBDCs.
Holding up a housing affordability bill over a CBDC, something voters know very little about, may not play well, especially as President Donald Trump and Congress slip in the polls and the economy remains a central concern.
Related: Crypto turnaround at Fed as Kraken scores account and Trump nominee goes to Senate
Does the US need a CBDC to ensure the dollar stays on top?
Republicans claim to be concerned about the privacy implications of a CBDC, and they aren’t alone. Regarding the digital euro, the European Central Bank’s planned CBDC, Luxembourg-based economist Elisabeth Krecké said that it’s unclear how the tradeoff between privacy and functionality could be managed.
“The digital euro drafters simply assert that Europe’s legal framework offers the ‘strongest privacy protections in the world,’” she said. “The real question is: What happens to the data in the end? Who will have access to it and, ultimately, who will control it?”
Democrats are far less skeptical of a CBDC than their Republican colleagues. Particularly as, according to Krecké, over 90% of the world’s central banks are investigating the technology.
In a criticism of Emmer’s early efforts to ban a CBDC, Congresswoman Maxine Waters said in a statement, ”When Republicans raise concerns about CBDCs they are talking about retail CBDCs, but because they are so averse to knowledge and studying things, they have no idea that their bill blocks research into other forms of digitizing the dollar that could truly cut costs for people.”
She added that with a functional and operating digital currency, China could provide an attractive alternative to the dollar as the global reserve currency.
Congress is still hammering out the details of the CLARITY Act, the long-awaited crypto framework bill, and now the future of a CBDC is being balanced with more affordable housing ahead of a midterm election.
Magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen
Cointelegraph Features publishes long-form journalism, analysis, and narrative reporting produced by Cointelegraph’s in-house editorial team with subject-matter expertise. All articles are edited and reviewed by Cointelegraph editors in line with our editorial standards. Research or perspective in this article does not reflect the views of Cointelegraph as a company unless explicitly stated. Content published in Features does not constitute financial, legal, or investment advice. Readers should conduct their own research and consult qualified professionals where appropriate. Cointelegraph maintains full editorial independence. The selection, commissioning, and publication of Features and Magazine content are not influenced by advertisers, partners, or commercial relationships. This content is produced in accordance with Cointelegraph’s Editorial Policy.
Strategy Posts Record STRC Sales After ATM Rule Change
Michael Saylor’s Strategy, the world’s largest public holder of Bitcoin, sold a record amount of its perpetual preferred equity, Stretch (STRC), after amending its sales rules on Monday.
Strategy is estimated to have bought 1,420 Bitcoin (BTC) in a single day after selling roughly 2.4 million STRC shares through its at-the-market (ATM) program, according to data from STRC.live. The amount marks the largest estimated daily issuance of STRC and BTC purchases, surpassing the previous record of 1,069 BTC, according to a Monday X post from STRC.live.
Strategy announced a major rule change to its at-the-market (ATM) share sales program on Monday, allowing a second agent to sell the securities before the US market opens and after it closes, easing a prior restriction limiting such sales to one agent per trading day.
STRC is one of the major pillars of Strategy’s Bitcoin buying
STRC is Strategy’s variable-rate perpetual preferred stock, launched in July 2025 as one of several securities the company uses to help fund its Bitcoin treasury strategy, alongside other ATM programs such as Stride (STRD), Strife (STRF), Strike (STRK) and common stock (MSTR). Strategy says the stock pays monthly variable cash dividends, with the annualized rate for March set at 11.5%.
Some market observers said the updated sales structure could make it easier for Strategy to issue stock more efficiently during premarket and after-hours trading, potentially accelerating future capital raises tied to Bitcoin purchases.
“A lot more capital will be raised, and a lot more Bitcoin will be purchased,” market observer Ragnar said.
According to STRC.live, last week’s estimate suggested STRC proceeds would fund a weekly purchase of approximately 4,300 BTC ($303 million). However, the actual purchase exceeded expectations, as Strategy reported selling around $378 million in STRC in its filing with the SEC on Monday.
Related: Oil tumbles, crypto gains as Trump sends mixed signals over Iran war
The company reported a massive $1.3 billion BTC purchase, marking one of its largest Bitcoin acquisitions on record. Common stock MSTR accounted for the largest proceeds in reported sales, generating nearly $900 million in proceeds.
The results for STRC underscore ongoing rapid acceleration in investor interest, despite the Bitcoin price trading below Strategy’s reported average cost basis of $75,862.
Magazine: The debate over Bitcoin’s four-year cycle is over: Benjamin Cowen
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Bitcoin’s Quantum Defense Plan: What BIP-360 Actually Changes
Key takeaways
-
BIP-360 formally puts quantum resistance on Bitcoin’s road map for the first time. It represents a measured, incremental step rather than a dramatic cryptographic overhaul.
-
Quantum risk primarily targets exposed public keys, not Bitcoin’s SHA-256 hashing, making public key exposure the central vulnerability developers aim to reduce.
-
BIP-360 introduces Pay-to-Merkle-Root (P2MR), which removes Taproot’s key path spending option and forces all spends through script paths to minimize elliptic curve exposure.
-
Smart contract flexibility remains intact, as P2MR still supports multisig, timelocks and complex custody structures via Tapscript Merkle trees.
Bitcoin was built to withstand hostile economic, political and technical scenarios. As of March 10, 2026, its developers are preparing to confront an emerging threat: quantum computing.
The recent publication of Bitcoin Improvement Proposal 360 (BIP-360) officially adds quantum resistance to Bitcoin’s long-term technical road map for the first time. While some headlines portray it as a dramatic shift, the reality is far more measured and incremental.
This article explores how BIP-360 introduces Pay-to-Merkle-Root (P2MR) to reduce Bitcoin’s quantum exposure by removing Taproot key path spending. It explains what the proposal improves, what trade-offs it introduces and why it does not yet make Bitcoin fully post-quantum secure.
Why quantum computing poses a risk to Bitcoin
For security, Bitcoin depends on cryptography, primarily the Elliptic Curve Digital Signature Algorithm (ECDSA) and Schnorr signatures introduced via Taproot. Regular computers cannot realistically derive a private key from a public key. However, a powerful quantum computer running Shor’s algorithm could break elliptic curve discrete logarithms, exposing those keys.
Key distinctions include:
-
Quantum attacks hit public-key cryptography hardest, not hashing.
-
Bitcoin’s SHA-256 remains relatively strong against quantum methods. Grover’s algorithm only provides a quadratic speedup, not an exponential one.
-
The real risk appears when public keys become exposed on the blockchain.
This is why the community focuses on public key exposure as the primary quantum risk vector.
Bitcoin’s vulnerabilities in 2026
Not every address type in the Bitcoin network faces the same level of future quantum threat:
-
Reused addresses: Spending reveals the public key onchain, leaving it exposed to a future cryptographically relevant quantum computer (CRQC).
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Legacy pay to public key (P2PK) outputs: Early Bitcoin transactions directly embedded public keys in transaction outputs.
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Taproot key path spends: Taproot (2021) offers two paths: a compact key path (which exposes a tweaked public key on spend) or a script path (which reveals scripts via a Merkle proof). The key path is the main theoretical weak point under a quantum attack.
BIP-360 directly targets that key path exposure.
What BIP-360 introduces: P2MR
BIP-360 adds a new output type, Pay-to-Merkle-Root (P2MR), modeled closely on Taproot but with one critical change. It removes the key path spending option entirely.
Instead of committing to an internal public key like Taproot, P2MR commits solely to the Merkle root of a script tree. To spend:
No public key based spending route exists at all.
Eliminating key path spends means:
-
No public key exposure for direct signature checks.
-
All spending routes rely on hash-based commitments.
-
Long-term elliptic curve public key exposure drops sharply.
Hash-based methods are far more resilient to quantum attacks than elliptic curve assumptions. This significantly shrinks the attack surface.
What BIP-360 preserves
A common misconception is that dropping key path spending weakens smart contracts or scripting. It does not. P2MR fully supports:
-
Multisig setups
-
Timelocks
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Conditional payments
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Inheritance schemes
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Advanced custody
BIP-360 executes all these functions via Tapscript Merkle trees. While the process retains full scripting capability, the convenient but vulnerable direct signature shortcut disappears.
Did you know? Satoshi Nakamoto briefly acknowledged quantum computing in early forum discussions, suggesting that if it became practical, Bitcoin could migrate to stronger signature schemes. This shows that upgrade flexibility was always part of the design philosophy.
Practical implications of BIP-360
BIP-360 may sound like a purely technical refinement, but its impact would be felt at the wallet, exchange and custody levels. If activated, it would gradually reshape how new Bitcoin outputs are created, spent and secured, especially for users prioritizing long-term quantum resilience.
-
Wallets could introduce opt-in P2MR addresses (likely starting with “bc1z”) as a “quantum-hardened” choice for new coins or long-term holdings.
-
Transactions will be slightly larger (more witness data from script paths), potentially raising fees somewhat compared to Taproot key path spends. Security trades off against compactness.
-
A full rollout would require updates to wallets, exchanges, custodians and hardware wallets. Planning should start years in advance.
Did you know? Governments are already preparing for “harvest now, decrypt later” risks, where encrypted data is stored today in anticipation of future quantum decryption. This strategy mirrors concerns about exposed Bitcoin public keys.
What BIP-360 explicitly does not do
While BIP-360 strengthens Bitcoin in the face of future quantum threats, it is not a sweeping cryptographic overhaul. Understanding its limits is just as important as understanding its innovations:
-
No automatic upgrade for existing coins: Old unspent transaction outputs (UTXO) remain vulnerable until users manually move funds to P2MR outputs. Migration depends on user behavior.
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No new post-quantum signatures: BIP-360 does not replace ECDSA or Schnorr with lattice-based (for example, Dilithium or ML-DSA) or hash-based (for example SPHINCS+) schemes. It only removes the Taproot key path exposure pattern. A full base layer transition to post-quantum signatures would require a much larger change.
-
No complete quantum immunity: A sudden CRQC breakthrough would still require massive coordination among miners, nodes, exchanges and custodians. Dormant coins could create complex governance issues and network stress could follow.
Why developers are acting now
Quantum progress is uncertain. Some believe it is decades away. Others point to IBM’s late 2020s fault-tolerant goals, Google’s chip advances, Microsoft’s topological research and US government transitions planned for 2030-2035.
Critical infrastructure migrations take many years. Bitcoin’s developers stress planning across BIP design, software, infrastructure and user adoption. Waiting for certainty in quantum progress could leave insufficient time for infrastructure upgrades.
If consensus builds, a phased soft fork could unfold:
-
Activate the P2MR output type
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Wallets, exchanges and custodians add support
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Gradual user migration over years
This mirrors the optional then widespread adoption of SegWit and Taproot.
The broader debate around BIP-360
Debate continues on urgency and costs. Questions under discussion include:
-
Are modest fee increases acceptable for HODLers?
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Should institutions lead the migration?
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What about coins that never move?
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How should wallets signal “quantum safety” without causing unnecessary alarm?
This is an ongoing conversation. BIP-360 advances the discussion but does not close it.
Did you know? The idea that quantum computers could threaten cryptography dates back to 1994, when mathematician Peter Shor introduced Shor’s algorithm, long before Bitcoin existed. Bitcoin’s future quantum planning is essentially a response to a 30-year-old theoretical breakthrough.
What users can do right now
There is no need to panic for now, as quantum threats are not imminent. Prudent steps you might take include:
-
Never reuse addresses
-
Stick to up-to-date wallet software
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Follow protocol upgrade news
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Watch for P2MR support in wallets
Those with large holdings should quietly map exposures and consider contingency plans.
BIP-360: The first step toward quantum resistance
BIP-360 represents Bitcoin’s first concrete step toward reducing its quantum exposure at the protocol level. It redefines how new outputs can be created, minimizes public key leaks and sets the stage for long-term migration planning.
It does not change existing coins automatically, keeps current signatures intact and underscores the need for a careful, coordinated ecosystem-wide effort. True quantum resistance will come from sustained engineering and phased adoption, not a single BIP.
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DeFi Insurance Is The Final Frontier Of Onchain Finance
Opinion by: Jesus Rodriguez, co-founder of Sentora
If you look at decentralized finance (DeFi) as a stack of computational primitives, it’s remarkably complete — yet fundamentally broken.
We have automated market makers for liquidity, like Uniswap. We have lending markets for capital efficiency, and bridges for cross-chain “packet switching.” Step back and look at the architecture from a systems engineering perspective.
There is a gaping hole where the risk backstop should be.
Insurance is the “missing primitive” of the decentralized web. It is the translation layer that turns scary, opaque technical risk into a legible line item — a number you can compare, hedge and budget for. Without it, we aren’t building a financial system; we’re building a very sophisticated, high-stakes casino.
Insurance hasn’t worked, so far
A lot of chatter has been spent on why onchain insurance hasn’t “mooned” despite billions in total value locked (TVL). Personally, I suspect the failure is structural, not just a “lack of interest.” We’ve been fighting against the physics of risk management.
Most first-generation protocols tried to use DeFi-native assets, like Ether (ETH) or protocol tokens, to insure the very same DeFi stack those assets live in. This is a classic “reflexivity” trap. When a major exploit happens, the entire ecosystem usually suffers a setback. The collateral loses value at the exact moment the payout is triggered. In systems terms, this is a positive feedback loop of failure. It’s like trying to insure a house against fire using a bucket of gasoline. To work, insurance requires uncorrelated capital: assets that don’t care if a specific smart contract gets drained.
Historically, we relied on retail yield farmers to provide “cover.” These users don’t wake up caring about actuarial tables or underwriting. They care about APY and points. This is not the stable, long-term underwriting base that is required to build a multibillion-dollar risk engine. Real insurance requires a “low cost of capital” base — institutional-grade assets that are happy to sit and collect a steady 2%-4% spread without needing to “degenerate” into 100% APY schemes.
The scaling imperative
We’ve spent years obsessing over TVL as the North Star of DeFi. TVL is a vanity metric; it tells you how much capital is sitting in the “danger zone.” The metric we actually need to optimize for — the one that actually measures the maturity of the industry — is total value covered (TVC).
If we have $100 billion in TVL but only $500 million in TVC, the system is effectively 99.5% “naked.” In any traditional engineering discipline, this would be considered a catastrophic failure in safety margins. You wouldn’t fly in a plane that was 0.5% “safety tested.”
The scaling imperative for the next era of DeFi is to bridge this gap. We need a path where TVC scales linearly with TVL. Currently, they are decoupled. TVL grows exponentially based on speculation, while TVC crawls linearly because the “risk markets” are illiquid and manually managed. Scaling DeFi isn’t just about Layer 2 throughput; it’s about “risk throughput.”
Pricing the ghost in the machine
We often talk about risk as an ethereal, spooky thing that happens to other people. In a mature financial system, risk is a commodity. It needs to be assetized.
Think of DeFi insurance as the pricing engine of risk. Currently, when you deposit into a vault, you are consuming a bundle of risks: smart contract risk, oracle risk and economic design risk. These risks are currently unpriced — they are just hidden baggage you carry.
By building a robust insurance primitive, we turn those hidden risks into tradable assets. We move from “I hope this doesn’t break” to “The market says the probability of this breaking is exactly 0.8% per annum, and here is the tokenized instrument that pays out if it does.”
Related: AI will forever change smart contract audits
This assetization is powerful because it creates a market signal. If the cost of cover for Protocol A is 5% while Protocol B is 1%, the market has effectively “priced” the security of the code. Insurance isn’t just a safety net; it’s the global oracle for protocol health. It turns “security” from a vague marketing claim into a hard, liquid price.
The dream of programmable insurance
The “end state” of this technology isn’t just a decentralized version of Geico — it’s a transition from legal insurance to computational insurance.
Think about the difference between a traditional legal contract and a smart contract. Traditional insurance involves 40-page PDFs, adjusters and a six-month claims process. It is a “human-in-the-loop” bottleneck.
Programmable insurance is a primitive that can be integrated directly into the transaction stack. It includes granular cover and atomic payouts. You don’t just “insure a protocol” in the abstract. You insure a specific LP position, a specific oracle feed, or even a single high-value transaction. If the state of the blockchain detects an exploit, the payout happens in the same block. There is no “claims department”; there is only “state verification.”
This makes insurance a “first-class citizen” in the code. You can imagine an “Insurance” button on every swap or deposit, much like how you choose “priority gas” today. It becomes a toggle in the UI.
The next wave of DeFi adoption
The real challenge for DeFi adoption isn’t convincing another 1,000 degens to use a bridge; it’s onboarding the fintechs and neobanks.
These entities are already knocking on the door. They are considering the 5% onchain risk-free rates and comparing them to their legacy rails, which are clogged with overheads and rent-seekers. However, for a neobank (think of firms such as Revolut, Chime or Nubank), “The code is the law” is not a valid risk management strategy. Their regulators — and their own risk committees — simply won’t allow it.
For these players, insurance isn’t a “nice to have”; it’s a hard requirement for deployment. They represent the next “trillion-dollar” wave of liquidity, but they are currently standing on the sidelines. They need a “wrapper” that makes DeFi look like a bank account.
If we can provide a robust, programmatically backed insurance layer, we aren’t just protecting degens; we are providing the “regulatory-compliant shield” that allows a neobank to put $1 billion of customer deposits into a lending vault. Insurance is the bridge between “crypto-native” and “global finance.”
We’ve spent the last few years building the “engine” of the new financial system. We have the pistons (liquidity), the transmission (bridges) and the fuel (capital). But we forgot the brakes and the air bags.
Until we solve the insurance primitive, DeFi will remain a niche experiment for the risk tolerant. By shifting our focus from TVL to TVC, moving toward uncorrelated collateral and embracing the “pricing engine” of assetized risk, we can finally turn this experiment into a resilient, global utility.
Strap in. There is a lot of code to write and even more risk to underwrite.
Opinion by: Jesus Rodriguez, co-founder of Sentora.
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