Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions contained in the article represent solely the author's views and do not necessarily reflect the stance of Decrypt. You may also follow their daily news program “FOMO HOUR”, which covers all major news stories and market developments.

Headline News:

• Mainstream encrypted assets fall another 2% to 3% along with stocks; Bitcoin trades at $82,600
• ETH Researcher Justin Drake Warning AI Hacker risks, calling for entry into “bunker mode”
• Bitcoin ETF experiences the largest single-day capital outflow since the end of June
• Tom Lee said that when ETH's position reaches 5%, they will stop buying, and this goal will be achieved quite soon.
• Near Intents launched Confidential Intents on Solana (with a 169% increase in Dark)

🔐 Ethereum researcher claims that AI may crack encryption earlier than quantum computing

Justin Drake has been warning for years that quantum computers may ultimately crack the mathematical foundations that protect encrypted wallets. On Wednesday, he made an even more concerning statement: AI may do so first, and it could happen within just a few months.

Drake is a researcher at the Ethereum Foundation, and he calls on the industry to start preparing for what he refers to as “bunker mode”. His suggestion is to transfer the coins to new addresses that have never initiated any transactions before.

Today, I call on the blockchain industry to calmly begin planning for ‘bunker mode’. My personal suggestion is to initiate a controlled large-scale asset migration to new addresses, that is, to those addresses where the public keys are still hidden behind hashes.

"Holders, starting with the large investors..."

—— Justin Drake (@ drakefjustin), October 7, 2026

The reason this is important is that each wallet has a private key that you keep confidential, as well as a public key generated by that private key. The public key is initially hidden in some form of encryption or obfuscation until you initiate a transaction from that wallet. Once you send a transaction, the public key is permanently displayed on the blockchain. If someone were able to derive the private key from the public key, then all wallets that have ever sent coins would be exposed. However, wallets that have only received coins and never initiated any transactions would not be exposed.

The system that performs these mathematical operations is called ECDSA; both Bitcoin and Ethereum rely on it. Drake indicates that there is now a reason to prepare for its failure before the arrival of quantum computers, and in the worst-case scenario, it could happen within months rather than years. By "cracking," he means using a large GPU cluster to recover someone's private key in about a week.

What changed his mind was the speed at which AI solved complex mathematical problems. He mentioned the 722 mathematical results published on OpenAI Tuesday. His argument is that elliptic curves – the structure on which ECDSA relies – happen to possess rich mathematical patterns that super intelligent systems might exploit, while the hash design used to hide public keys is intended to resist such attacks.

He named Binance, Bitbank, Robinhood, Bitfinex, and Tether and required them to strengthen cold storage. He also provided a strange form of comfort to small holders: about 20,000 addresses believed to belong to the Bitcoin founder, each holding 50 BTC, and the public keys have been exposed. Anyone who manages to crack this issue is likely to target these addresses first. He referred to it as “Satoshi Nakamoto’s Shield.”

So what does this mean? Drake advises carefully not to panic or act rashly, and to start transferring self-hosted crypto assets to new, secure wallets. However, there are alternative options: you can use ETF; you can also use verified custodian institutions like Coinbase; if you prefer to hold your private keys yourself, you might consider collaborating with experts to ensure best practices are followed.

Any action is probably better than burying one's head in the sand and hoping that everything will pass on its own...

🌎 Macroeconomics, Cryptography, and Markets

• The prices of mainstream encrypted assets continue to weaken, with another drop of 2% to 3%; BTC falls by 1% to $82,600; ETH falls by 2% to $2,540; SOL falls by 3% to $114; HYPE falls by 4% to $86; ZEC falls by 8% to $1,210.
• The top-performing altcoins in terms of increase include JUP (+16%), ALGO (+15%), STRK (+21%), and RAY (+7%).
• Crude oil rises 3% to $93; gold remains flat at $4,140
• Stock index futures weakened as crude oil and bonds continued to rise; the Dow Jones fell 0.9%, and the Nasdaq fell 0.8%.
• Tom Lee indicates that Bitmine will stop buying once it holds 5% of the Ethereum supply, with approximately 100,000 ETH remaining to be acquired; since Bitmine has been buying every week since June 2025, such statements have caused the price of ETH to fall by about 5%.
• The Chairman of the House Financial Services Committee, French Hill, stated that although he affirmed the actions of SEC and CFTC, the rules of these two institutions are not sufficient; he believes that only legislation can bring lasting certainty, and mentioned that he still hopes to push for the passage of Clarity Act during this lame-duck session.
• On Tuesday, the government wallet transferred $103 million in seized crypto assets, sending 833.6 Bitcoins to Coinbase Prime and 40,285 BNB to a new address; these Bitcoins are linked to the Bitfinex hacking incident and another fraud case.
• In two reports released on Wednesday, Europol stated that encrypted wallets are the main weak points in the face of future quantum attacks; their conclusion is that encryption will not collapse, but wallets with exposed public keys cannot be repaired afterwards, and it is necessary to transfer funds before any attack occurs.
• According to two people familiar with the matter, Wells Fargo is in talks with the parent company of Kraken to provide them with liquidity for encrypted transactions; the bank will retain its own customer relationships, while Payward is responsible for pricing and execution.
• Polygon has added support for Tron to its payment stack, enabling access to $94 billion in USDT on that network; enterprises can now transfer Tether between Tron and Ethereum-like networks with a single integration.
• Gate indicates that integrated financial applications represent the biggest consumption trend in the crypto industry this year and next. Users are hoping to complete payments, savings, and transactions within a single application, rather than dispersing these activities across multiple apps.

Enterprise Treasury and ETF

• Bitcoin ETF saw a net outflow of $485 million on Wednesday; ETH ETF had a net outflow of $161 million.

Emoticon Coin Tracking

• Emoticon coin leaders generally fell; DOGE dropped by 3%, SHIB dropped by 2%, PEPE dropped by 1%, PENGU dropped by 1%, TRUMP remained flat, SPX dropped by 6%, BONK dropped by 1%.
• Robinhood The leading players in the chain continue to weaken; Pons Drops by 5% to $260 million; AI Drops by 12% to $108 million; Cashcat Drops by 7% to $120 million; Hookr Increases by 60%, ZZZ Increases by 27%, Bucket Leads the increase with a 60% rise
• The main increases include MET rising by 50%, Dark rising by 165%, Crawl rising by 40%, and Stupid Inu rising by 160%.

💰 Tokens, Airdrops, and Protocol Tracking

• Calculated based on daily revenue, Hyperliquid leads the list with $2.77 million, followed by Pumpfun with $2.57 million and Stonk with $428,000.
• Hyperliquid's Jeff Yan stated on DAS Asia 2026 that if he were to start from scratch today, he would first develop an options product; he no longer believes that perpetual contracts will attract options traders. He said that HIP-4 provides developers with a direct path, as it can utilize Hyperliquid's existing order book and margin system while using perpetual contracts to hedge risks.
• Hyperliquid Labs released 3.75 million HYPE tokens, valued at approximately $330 million, and sent half of them to 5 private buyers, marking the largest team distribution in its history; these tokens will go to an undisclosed institution rather than being sold on an exchange.
• Near Intents announced the launch of Confidential Intents on DarkSwap, allowing for confidential exchanges from Solana; after the announcement, the value on DARK rose by 169%.

🚚 What happened to NFT?

• NFT Leading stocks show divergence; Punks Held flat at 33; ETH; BAYC Rose 4% to 6.06; ETH; Pudgy Fell 8% to 2.88; ETH
• Claus (+120%) and Trace (+19%) lead the gains