Bitcoin Stalls as Geopolitical Risks and Crypto Industry Tensions Persist

Bitcoin is trading sideways, and the Iran crisis is far from over. The World Liberty Financial project, promoted by US President Trump, is making negative headlines.

Bitcoin reached the $72,000 mark again on Friday morning, rising by around 1.5 percent. Bitcoin ETFs reported $358 million in capital inflows from Thursday’s trading, while Morgan Stanley’s new MSBT ETF saw a modest $15 million gain on its second day of trading, according to data from Farside .

The debate surrounding quantum computers and their potential threat to Bitcoin’s security architecture is intensifying

Developer Avihu Levy has proposed a solution called “Quantum Safe Bitcoin (QSB),” which aims to function without any changes to the BTC protocol.

However, Levy explains that QSB’s technologically complex approach would require users to have additional hardware to solve cryptography offline and would increase transaction costs to over $75. This is one reason why he sees QSB as a “last resort.” Within the Bitcoin community, the BIP360 proposal is currently the favorite as a response to quantum computers, but it requires a Bitcoin update, something a large majority is still far from certain is feasible.

Ethereum is holding steady at the $2,000 mark with a 1 percent daily gain. Ethereum ETFs saw an inflow of $85 million

In the Ethereum ecosystem, US President Donald Trump has many critics, and they are likely to feel vindicated by revelations about financial tricks at World Liberty Financial (WLFI). The tech magazine CoinDesk discovered, using blockchain data, that WLFI contributed tokens from its reserves to a Dolomite pool in order to receive stablecoins as loans.

World Liberty Financial is co-founded by the Trump sons and was personally promoted by the president. With WLFI’s price trending downwards (down 14 percent this week), Dolomite is now sitting on a “bad loan,” writes CoinDesk, adding that this type of circular economy harms ordinary investors.

The day’s top performer is MONAD, with a 20 percent gain. Its stock market debut in November was mixed, but the DeFi project is now receiving a boost from the integration of Coinbase Wrapped Bitcoin (cbBTC). MONAD expects to add $5 billion in liquidity to its financial offerings through cbBTC.

The biggest loser of the day is Bittensor (TAO), down 16 percent. The project focuses on artificial intelligence (AI) in a blockchain environment, and Bittensor seems to be attracting speculators like a magnet with this approach.

The crypto sentiment barometer remains at “Neutral”, a realistic approach given the many uncertainties surrounding the ceasefire in Iran.

Blockchain-based betting markets have become a major topic since Polymarket launched in 2024, with revenues increasing a thousandfold last year according to HTX . Now Binance also wants to enter this sector and has integrated “prediction markets” into its wallet.

The service is provided by predict.fun, and the Binance Wallet is used by millions of people. Whether this will be enough to seriously challenge the market leaders Polymarket and Kalshi, who currently hold a 97 percent market share, remains to be seen in the coming months.

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(Featured image by beyzahzah via Pexels)

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