Bitcoin News Today: Bitcoin Dominance Rises Amid Quantum Debate Split

Bitcoin's dominance in the cryptocurrency market continued to rise in 2025, capturing 70–85% of the crypto ETF market share, as institutional investors prioritized Bitcoin over altcoins. Meanwhile, debates over the future security of the digital asset intensified, with high-profile figures like Adam Back of Blockstream and Nic Carter of Castle Island Ventures clashing over the urgency of quantum computing threats. The dispute highlighted a broader divide in the Bitcoin ecosystem on how to address emerging risks.

Back criticized Carter for amplifying concerns about quantum threats, calling the warnings "uninformed noise" and arguing that Bitcoin developers were already working on solutions in private according to a report. Carter, on the other hand, pushed back, stating that many developers remained in denial about the long-term risks and that preparation needed to be more visible to investors. The debate took on added urgency after Carter revealed Castle Island's investment in Project Eleven, a startup focused on quantum-resistant defenses.

Bitcoin's growing market share was driven in part by institutional demand, with products like BlackRock's IBIT ETF attracting over $25 billion in 2025 despite a price decline.

Meanwhile, Ethereum gained ground but still trailed far behind, capturing only 15–30% of the ETF market. The concentration of flows into Bitcoin suggested that institutional investors viewed it as a distinct asset, separate from the broader crypto market, and more akin to a digital commodity or macro hedge according to analysis.

Why the Standoff Happened

The quantum computing debate reignited as Carter outlined several reasons for concern, including government moves toward post-quantum cryptography, rising investment in quantum firms, and Bitcoin's status as a high-profile target. Carter described himself as "quantum pilled" after discussions with Project Eleven's CEO, signaling a growing belief that Bitcoin's cryptographic security could be compromised by future quantum advancements. He emphasized that the risk was not imminent but needed to be addressed proactively.

Back rejected these claims, calling quantum computing "ridiculously early" and arguing that Bitcoin developers had already begun exploring quantum-resistant solutions without creating unnecessary market noise according to the report. He maintained that even if quantum threats emerged, Bitcoin's design would prevent an immediate collapse. However, Carter and others, including Capriole Investments' Charles Edwards, warned that the threat could materialize within two to nine years if the network did not upgrade according to a report.

The debate also drew attention from other prominent figures. Entrepreneur Kevin O'Leary argued that using quantum computing to break Bitcoin's security would be inefficient compared to other applications like AI research according to analysis. This perspective added to the tension between those advocating for immediate action and those dismissing the risk as theoretical.

How Markets Reacted

Bitcoin's rising dominance was reflected in market sentiment and investor behavior. The Fear and Greed Index, which gauges market psychology, fell to 16 in December 2025, signaling extreme fear amid market volatility. Despite this, institutional buying remained strong, with Bitcoin ETFs consistently absorbing the majority of inflows. Ethereum saw a gradual increase in market share, but altcoins remained under pressure.

The contrast between Bitcoin and gold also became more pronounced. Analyst Matthew Kratter argued that Bitcoin's fixed supply and digital portability made it a superior store of value compared to gold, which has an annual supply growth of 1–2% according to analysis. He noted that historical gold influxes, like those during the 16th century, had led to economic instability, whereas Bitcoin's protocol ensured a predictable supply. This view aligned with the growing institutional preference for Bitcoin as a digital asset distinct from traditional commodities.

What Analysts Are Watching

Looking ahead, the debate over quantum risks and Bitcoin's long-term security will likely remain unresolved until clearer timelines emerge for quantum computing advancements. The development of proposals like BIP-360, which introduces quantum-resistant address formats, shows that the community is exploring solutions according to reports. However, implementing such changes requires consensus, and Bitcoin's governance model has historically favored caution over haste.

Market participants are also watching how institutional adoption evolves in 2026. While Bitcoin dominance remains high, growing Ethereum inflows and the emergence of new ETF products could shift capital flows. Meanwhile, the debate over Bitcoin's role in the financial system-whether as a hedge, commodity, or speculative asset-continues to shape its long-term narrative. For now, the standoff between developers and investors over quantum risks adds another layer of complexity to an already dynamic market.