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“Don’t Panic”: Binance CEO CZ Says Bitcoin Bearish Phase Won’t Last

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Binance founder and former CEO Changpeng Zhao (CZ) has urged investors to remain calm, insisting that Bitcoin’s current bearish sentiment is only temporary.

In a post aimed at reassuring the crypto community, CZ emphasized that market downturns are a natural part of Bitcoin’s long-term growth cycle and should not overshadow the asset’s broader trajectory.

He wrote on X,

“Bitcoin won’t be “dead” for too long. Don’t panic, in large friendly letters.”

CZ’s statement quickly sparked widespread discussion on X, where supporters and critics alike weighed in on Bitcoin’s future. Many long-term believers expressed confidence that the current downturn presents an opportunity rather than a threat.

One market participant said they were patiently waiting for Bitcoin to fall into the $35,000 to $45,000 range before accumulating more, adding that they remained committed to their investment strategy and trusted both God and their own judgment.

Others pointed to Bitcoin’s resilience throughout its history. Several users noted that the cryptocurrency has been declared “dead” hundreds of times over the years, only to recover and reach new highs. For many veterans of the market, headlines predicting Bitcoin’s demise have become a familiar cycle.

CZ comments come as cryptocurrencies plunged heavily in the last 24 hours, amidst growing fears of a hawkish monetary policy outlook from the Fed in response to persisting price pressures in the U.S economy.

The overnight plunge in overall crypto market capitalization comes amidst renewed tensions in the Middle East after the U.S. and Iran exchanged strikes.

Markets assessed the resultant decline in crude oil prices, the dollar’s flat moves, the decrease in Wall Street futures as well as the hardening in bond yields that followed the flare-up.

Also, reports reveal that anxiety ahead of the looming interest rate decisions by major central banks as well as the potential liquidity drain from the blockbuster IPOs in the coming days also contributed to the bearish sentiment.

BTC USD faces major battles today as Iran tensions flare with Trump proportional strikes while hinting at a deal days away. After proportional strikes, Trump hinted at a potential deal “days away,” yet the Iran escalation sent BTC USD sliding from recent highs.

Over $400 million in liquidations reportedly hit the market, with more than $300 million coming from long positions. Bitcoin currently faces renewed selling pressure trading below the $62k price level.

BTC USD now holds unstable ground at $61-62k as energy prices surge from the conflict, feeding macro fears. Total crypto market cap sits steady at $2.2T as Bitcoin dominance slides.

Broader market sentiment has turned fearful, with outflows from Bitcoin ETFs and heightened macro uncertainty contributing to the pullback.

Despite the dip, CZ’s words echo a familiar narrative in crypto cycles: periods labeled “dead” or written off by skeptics have repeatedly proven temporary. Bitcoin has faced countless obituaries throughout its history, only to rebound stronger in subsequent bull phases.

What This Means for Investors

While no single post can dictate market direction, CZ’s message highlights a core principle in volatile assets like Bitcoin: emotional decisions during downturns often lead to regret.

Historical patterns show that fear-driven sell-offs have frequently marked attractive accumulation zones before recoveries.

That said, short-term risks remain. Support levels around $60,000 are being watched closely, while resistance sits higher. Traders and long-term holders alike are weighing macro factors, ETF flows, and on-chain data as they navigate the current phase.

Outlook

Bitcoin appears to be entering a phase where macroeconomic forces are likely to dominate short-term price direction. With heightened geopolitical tensions, shifting energy markets, and uncertainty around U.S. monetary policy, traders expect continued volatility rather than a smooth recovery

Technically, the market is now watching the $60,000 zone as a key psychological level. A sustained break below this range could open the door to deeper corrections, while a strong defense of this level may reinforce the case for consolidation before any recovery attempt.

Despite the uncertainty, long-term sentiment among Bitcoin supporters remains relatively steady. Many view downturns as part of the asset’s natural cycle, especially given its historical pattern of sharp drawdowns followed by strong recoveries. This perspective aligns with CZ’s broader message that bearish phases are temporary rather than structural failures.

Anthropic Opens Powerful Mythos AI to Wider Users, but Tightens Safety Controls Ahead of IPO Push

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Artificial intelligence startup Anthropic is making its most advanced AI technology available to a broader audience for the first time, while imposing strict safeguards designed to prevent the system from being used for potentially dangerous cybersecurity activities.

The company on Tuesday unveiled Claude Fable 5, describing it as the most capable model it has released for general use. The launch marks a significant milestone for Anthropic as it seeks to expand commercial adoption of its technology following the global attention generated by its experimental Mythos model earlier this year.

Mythos stunned governments, cybersecurity experts, and technology companies after Anthropic disclosed that the system had identified thousands of previously unknown software vulnerabilities, raising both excitement about its capabilities and concern about how such powerful tools could be misused.

Until now, access to Mythos has been restricted largely to about 200 organizations participating in Anthropic’s Glasswing program, including U.S. government agencies and selected cybersecurity institutions.

The wider rollout comes at a crucial moment for Anthropic. The company has emerged as one of the most valuable businesses in the artificial intelligence sector, carrying an estimated valuation of $965 billion and increasingly competing head-to-head with rivals such as OpenAI, Google DeepMind, and xAI as the race toward public listings accelerates.

Balancing Power and Safety

Anthropic’s challenge has been how to commercialize a model capable of sophisticated cybersecurity reasoning without enabling malicious actors to exploit those same capabilities. The company said Claude Fable 5 includes extensive safeguards that block users from employing the model to search for software vulnerabilities, conduct offensive cyber operations, or perform other high-risk activities.

Dianne Penn, Anthropic’s head of product management, research, and labs, explained how the restrictions would work in practice.

“Let’s say I’m a college student asking the model like help me find cyber vulnerabilities on X package or code. The model would refuse and Fable 5 will fall back to Opus 4.8 for a response,” Penn told Reuters.

The approach reflects a shift across the AI industry, with companies separating frontier research systems from commercially available products. Rather than releasing raw capabilities directly to consumers, firms are embedding policy controls that limit access to sensitive functions.

Anthropic said it conducted extensive testing to ensure users cannot easily manipulate or jailbreak the system into performing restricted actions.

The original Mythos preview generated attention because it demonstrated capabilities that went beyond traditional coding assistants.

According to Anthropic, the model was able to uncover large numbers of software vulnerabilities, highlighting how advanced AI systems may soon become powerful tools for both cybersecurity defense and cyber offense.

That dual-use nature has become one of the most contentious issues in artificial intelligence development.

Governments view advanced AI models as potential national security assets. The U.S. government has expanded cooperation with Anthropic through initiatives such as Glasswing, while countries including South Korea, Japan, and several European allies have sought access to frontier AI systems for cybersecurity purposes.

The debate has intensified as researchers warn that future generations of AI could autonomously discover and exploit vulnerabilities faster than human experts. Anthropic’s decision to keep unrestricted Mythos access confined to trusted organizations appears aimed at reducing those risks while still enabling legitimate research and security applications.

Anthropic recently confidentially filed for an initial public offering, placing it among a growing list of AI giants preparing to enter public markets. Investors are focused on whether frontier AI developers can convert technological leadership into sustainable revenue growth.

By releasing Claude Fable 5 more broadly, Anthropic gains an opportunity to expand enterprise adoption while preserving safeguards around its most sensitive capabilities. The company said customers already using the preview version of Mythos will be able to upgrade to Claude Mythos 5, while broader access will gradually expand through what it described as a more systematic trusted-access program.

This tiered approach allows Anthropic to monetize cutting-edge technology without fully relinquishing control over its most powerful capabilities.

Cost Efficiency Becomes a New Battleground

Beyond performance, Anthropic is also emphasizing efficiency. Penn said early users have reported that while Fable 5 is positioned as a premium model, it completes tasks using fewer tokens, potentially lowering overall costs for customers.

As enterprises spend billions of dollars deploying AI systems, attention is increasingly moving away from raw model capability toward economics. Companies are now evaluating not only which models perform best, but also which deliver the lowest cost per completed task.

Competition on efficiency is becoming important as businesses scrutinize soaring AI budgets and seek ways to manage spending without sacrificing performance. Anthropic has priced both Claude Fable 5 and Claude Mythos 5 at $10 per million input tokens and $50 per million output tokens.

The artificial intelligence industry’s most advanced models are becoming powerful enough to influence national security, software infrastructure, and critical systems. Yet the same capabilities that make them valuable also create concerns about misuse. Anthropic’s solution is effectively a compromise: make the technology more widely available while limiting access to its most sensitive cybersecurity functions.

Google DeepMind Economist Sees No Evidence of AI-Driven White-Collar Job Bloodbath, Warns of ‘FOMO Layoffs’

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Fears that artificial intelligence is already wiping out white-collar jobs may be running ahead of the evidence, according to a senior economist at Google DeepMind, who says the data so far does not support claims of a widespread employment crisis.

Alex Imas, director of AGI economics at Google DeepMind and a professor at the University of Chicago, said he has yet to see convincing signs that AI is causing broad-based layoffs across professional occupations, even in sectors considered most exposed to automation.

Speaking on the Dwarkesh Podcast, Imas pushed back against growing predictions from some technology leaders that AI will soon eliminate large numbers of office jobs.

“A lot of people are looking at it,” he said, adding that “even looking at software engineering, the most exposed sectors, there’s just not really anything going on.”

This stands in contrast to dire warnings from some leaders at frontier AI companies. Executives such as Dario Amodei have cautioned that AI could eventually remove large portions of entry-level white-collar work, while other industry figures have warned of significant labor market disruption over the next several years.

Imas, however, argued that current labor market data does not show evidence of a large-scale employment shock.

“Right now, we don’t really have any evidence of a white-collar bloodbath,” he said.

The Bigger Risk May Be Corporate Psychology

While dismissing claims of an ongoing jobs apocalypse, Imas highlighted a different risk that could emerge if corporate behavior becomes driven by perceptions rather than economic reality. He described a hypothetical scenario in which companies begin cutting staff simply because investors and competitors expect AI adoption to translate into workforce reductions.

“Let’s say we get into a narrative where if you’re a firm and you’re not laying people off, then you’re seen as not adapting AI enough,” he said.

“That’s super worrying, where the firm might actually be worse off after the layoffs than before the layoffs, but it’s just doing the layoffs to have the perception that, ‘Look, we’re not behind the times. We’re using AI.'”

Such a dynamic could create what economists often describe as a herd effect, where businesses mimic one another’s actions not because the strategy improves productivity, but because they fear appearing less innovative than rivals.

The warning comes as corporate executives face mounting pressure from investors to demonstrate clear AI strategies. In recent months, several technology firms have cited AI as a factor in workforce reductions, fueling speculation that automation-driven restructuring is accelerating.

Rather than eliminating jobs outright, Imas suggested AI’s immediate impact may be to automate portions of existing roles while leaving workers responsible for higher-value activities.

“Let’s say the AI automates nine out of ten tasks. One task is not automated,” he said.

“If that person can now focus in on that task, the job will become more productive.”

This view aligns with a growing body of economic research suggesting that AI’s near-term effect may be augmentation rather than wholesale replacement. Historically, major technological advances have often increased productivity by changing how work is performed rather than eliminating occupations entirely.

That does not mean labor markets will remain unchanged. Certain routine tasks may disappear, new roles may emerge, and skill requirements could shift significantly. But the transition may be more gradual than some forecasts suggest.

A Debate Dividing the AI Industry

A widening divide within the AI sector itself has been going on. On one side are executives who warn that capable AI systems could rapidly replace knowledge workers across industries. On the other hand, there are researchers and economists who argue that there is currently little empirical evidence supporting predictions of mass unemployment.

Notably, a spokesperson for Google DeepMind emphasized that Imas was speaking in a personal capacity and that the scenario he described was hypothetical. The spokesperson added that his broader point was that existing data does not indicate a white-collar employment collapse.

The company also pointed to previous remarks by Demis Hassabis, who has argued that AI could ultimately boost productivity, create new industries, and generate entirely new categories of jobs. The debate is becoming increasingly important as businesses invest billions of dollars into AI systems and governments assess how the technology may reshape labor markets.

For now, according to Imas, the evidence suggests caution against dramatic conclusions.

The technology is advancing rapidly, but the widely predicted wave of AI-driven white-collar job destruction has yet to materialize in the data. The greater immediate risk, he suggests, may be companies acting on the expectation of disruption before the disruption itself has actually arrived.

Why Banks May Be More Vulnerable to Quantum Attacks Than Bitcoin

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Tim Draper has revived a long-running debate in cryptography and financial security with a stark claim: quantum computing will likely compromise traditional banking systems before it meaningfully threatens Bitcoin.

At the core of his argument is not simply the raw power of quantum machines, but the uneven structure of financial infrastructure itself—centralized banks on one side, and a protocol-driven, upgradeable monetary network on the other.

Quantum computing, still in its early but accelerating development phase, poses a theoretical risk to modern cryptography.

Most banking systems rely on public-key encryption schemes such as RSA and elliptic curve cryptography to secure transactions, authenticate users, and protect stored data. A sufficiently powerful quantum computer running algorithms like Shor’s algorithm could, in principle, derive private keys from public keys, breaking much of the cryptographic foundation underpinning digital finance.

Draper’s contention is that banks are structurally more exposed to this risk. The banking sector is built on deeply layered legacy systems: decades-old databases, interlinked payment rails, regulatory compliance layers, and heterogeneous security architectures that were never designed with quantum-era threats in mind.

Upgrading such infrastructure is not a single coordinated action but a slow, fragmented process involving regulators, central banks, and thousands of financial institutions across jurisdictions. This inertia, he argues, creates a vulnerability window. By contrast, Bitcoin operates as a globally synchronized protocol.

While it also relies on elliptic curve cryptography specifically secp256k1, its system has a fundamentally different upgrade mechanism. Changes to the protocol can be proposed, tested, and adopted through network consensus. In theory, this allows Bitcoin to migrate toward post-quantum cryptographic schemes—such as lattice-based signatures—once the threat becomes credible enough, without requiring permission from any central authority.

However, this comparison is not as clean as it first appears. Bitcoin’s cryptographic exposure is not purely theoretical. Public keys that have already been revealed on-chain could, in a future quantum scenario, become vulnerable to attack. That said, Bitcoin users are generally encouraged to avoid address reuse, and unused or hashed public keys provide a layer of indirect protection.

Banks, on the other hand, often maintain persistent identity systems and long-lived credentials tied to user accounts, making retroactive remediation significantly more complex. Another dimension of Draper’s argument centers on custody models. Banks are large, centralized repositories of value.

A successful quantum breach in a banking environment could cascade across account systems, settlement layers, and interbank messaging networks.

Bitcoin, despite its scale, is distributed across millions of independent holders. Even if quantum capabilities emerged suddenly, the damage surface is fragmented rather than concentrated. Still, many cryptographers dispute any strong conclusion that Bitcoin is inherently safer. The same mathematical primitives underpin both systems, and the transition to quantum-resistant cryptography will be technically complex everywhere.

The real differentiator may not be vulnerability, but speed of adaptation. Financial institutions with regulatory constraints may move slower than open-source communities coordinating protocol upgrades. Draper’s claim is less about declaring a winner in a quantum threat scenario and more about highlighting asymmetry in systemic adaptability.

Whether quantum computing arrives in ten years or fifty, the institutions that survive its cryptographic disruption will likely be those capable of rapid structural change. In that framing, Bitcoin is not immune—but it may be more agile.

Bitcoin ETF Outflows Hit 3-Day Streak as Hindenburg Omen Triggers in Market Warning Sign

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Bitcoin’s spot ETF market is once again flashing signs of fragility as institutional flows turn negative for a third consecutive day, coinciding with the rare recurrence of the so-called Hindenburg Omen, a technical market breadth signal historically associated with elevated crash risk regimes.

While neither indicator is deterministic on its own, their simultaneous appearance has reignited debate about whether crypto markets are transitioning from consolidation into a deeper risk-off phase. The renewed ETF outflows matter because they reflect behavior at the institutional margin—the segment of capital that has increasingly defined Bitcoin’s price discovery since the approval of spot exchange-traded funds.

Unlike retail-driven cycles of earlier eras, today’s Bitcoin market is heavily shaped by ETF creations and redemptions, where even modest changes in net flows can have outsized effects on liquidity conditions. A third straight day of net outflows suggests that allocators are either reducing exposure tactically or rotating risk into alternative macro hedges amid shifting expectations for liquidity and interest rates.

Flow dynamics in ETF structures also carry a mechanical dimension. When redemptions exceed creations, authorized participants unwind underlying Bitcoin holdings, increasing sell pressure in the spot market.

This creates a feedback loop: price softness encourages further outflows, which in turn deepen liquidity stress. While such cycles are not unusual, their persistence over multiple sessions can signal a broader reassessment of risk appetite among institutional investors rather than isolated portfolio rebalancing.

Overlaying this is the emergence of the Hindenburg Omen signal, a technical indicator derived from market breadth and new highs versus new lows. It is designed to identify internal divergence within equity markets—conditions where index-level stability masks weakening underlying participation.

Its appearance in crypto commentary is less standardized, but traders often adapt the framework to Bitcoin’s derivatives and spot breadth metrics. The triggering of this signal for three consecutive days is being interpreted by some participants as evidence of deteriorating market structure, even if its historical predictive accuracy remains debated.

Importantly, the Hindenburg Omen is not a timing tool in the strict sense. In traditional equity markets, its occurrences have been followed by both significant drawdowns and periods of continued upside. Its value lies more in regime identification: it tends to appear when volatility compression coexists with fragmented participation and uneven liquidity distribution.

In crypto, where leverage is higher and liquidity thinner across venues, such conditions can be more pronounced but also more prone to false positives. The convergence of ETF outflows and a repeated breadth warning creates a narrative tension between macro stability and micro fragility.

On one hand, broader risk assets have not necessarily confirmed a synchronized downturn, and macro liquidity conditions remain the dominant driver of long-term Bitcoin valuation. On the other hand, short-term structural signals suggest that marginal buyers are stepping back, leaving price action more vulnerable to downward momentum cascades.

Derivatives markets reflect this ambiguity. Funding rates have moderated, options skew has begun to tilt slightly toward downside protection, and open interest adjustments indicate some de-leveraging rather than aggressive short positioning. This combination often characterizes transitional phases where conviction is low and positioning is being recalibrated rather than decisively inverted.

The significance of these signals depends on whether ETF outflows persist beyond a short streak and whether breadth weakness expands into broader market dislocation. If outflows stabilize, the current episode may be absorbed as routine volatility within a larger accumulation trend. If they accelerate alongside continued technical deterioration, the market could be entering a more sustained corrective phase.

For now, the intersection of institutional flow pressure and technical warning signals places Bitcoin in a delicate equilibrium—neither decisively bearish nor convincingly resilient, but instead operating in a narrow band where sentiment and liquidity can shift rapidly in either direction.