Jefferies | Crypto

The $293 million Kelp DAO exploit has exposed critical infrastructure risks, leading Jefferies to suggest that traditional financial firms may pause their blockchain initiatives to prioritize security.

Jefferies' Christopher Wood eliminated a 10% Bitcoin allocation in favor of gold, warning that quantum computing advances could undermine cryptographic security as researchers estimate 30% of circulating supply remains vulnerable to future attacks. The post Jefferies’ Wood Ditches Bitcoin, Warning Quantum Computing Could Break It appeared first on Cryptonews.

Jefferies’ Greed & Fear strategist Christopher Wood has slashed a 10% Bitcoin allocation from his portfolio and moved into gold, citing the quantum risk to BTC, Bloomberg reports. Investment bank Jefferies’ longtime “Greed & Fear” strategist Christopher Wood has reportedly eliminated Bitcoin from his flagship model portfolio, citing mounting concerns that advances in quantum computing may undermine the cryptocurrency’s long-term security. According to a report by Bloomberg, Wood said in the latest edition of his Greed & Fear newsletter, that the 10% Bitcoin (BTC) allocation he first added in late 2020 has been replaced by a split position in physical gold and gold mining stocks. He argued that quantum breakthroughs would weaken Bitcoin’s claim to be a dependable store of value for pension‑style investors. Read more

Tether accounted for almost 2% of global gold demand last quarter, with Jefferies noting that its aggressive buying may be influencing short-term market sentiment. Stablecoin issuer Tether holds 116 tons of physical gold, placing it on par with central banks such as those in South Korea, Hungary and Greece. Tether is “the largest holder of gold outside central banks,” Jefferies wrote in a recent analysis, per a report by the Financial Times. The investment bank added that Tether’s growing appetite for gold may be playing a larger role in the metal’s recent surge than previously assumed. According to Jefferies, Tether’s gold purchases last quarter accounted for nearly 2% of total global gold demand and almost 12% of central bank purchases. The company said that Tether’s aggressive accumulation over the past two months “is likely to have tightened supply in the short term and influenced sentiment,” potentially driving speculative inflows into gold markets. Read more