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Even as Bitcoin (CRYPTO: BTC) has hit a new all-time high above $111,000, driven by surging institutional demand, tightening supply, and macroeconomic tailwinds, experts caution the rally isn't without structural risks, including the looming threat of quantum computing.

What Happened: Bitcoin surged to a new record of $111,544 on Wednesday, extending its post-halving uptrend and highlighting its growing appeal to institutions amid dovish macro signals.

The cryptocurrency was last trading at $111,000, up roughly 1% for the day.

The broader market also gained, with Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), XRP (CRYPTO: XRP), and BNB (CRYPTO: BNB) up 5%, 6%, 3.4%, and 4.6%, respectively.

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However, market sentiment at 72 nears extreme greed, making growth susceptible to pullbacks, especially amid a U.S. government bond sell-off.

What Experts Are Saying: Analysts say the rally is being powered by real spot demand and record ETF inflows, not leverage or hype.

Bitget Research's Chief Analyst Ryan Lee said the rally "reflects a regime shift," citing ETF-driven accumulation and a post-halving supply crunch.

"Institutional adoption is accelerating, and regulatory clarity, particularly progress on the GENIUS Act is reinforcing market confidence," Lee noted, although he warned that "a stronger U.S. dollar or fresh geopolitical tensions could easily knock momentum off course."

The rally has pushed the total crypto market capitalization briefly past $3.5 trillion.

Still, FxPro's Alex Kuptsikevich cautioned that the absence of FOMO means growth may remain fragile.

"Sentiment at 72 is near the extreme greed zone. That often precedes corrective pullbacks," he said.

Bitfinex analysts noted the breakout above $109,500 was driven by "clean spot demand, ETF inflows, and a macro backdrop that favors risk-on assets."

They added that funding rates remain stable and open interest is rising in line with price—hallmarks of a structurally sound rally.

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What’s Next: Yet, not all analysts are focused on short-term price moves.

David Carvalho, CEO of Naoris Protocol, warned that quantum computing is a "credible existential threat" to Bitcoin's long-term integrity.

Story Continues

"There are over 100 quantum machines operational globally. With Shor's algorithm, they could break Bitcoin's cryptography," he said, referencing the Elliptic Curve Digital Signature Algorithm that secures the majority of BTC. "Roughly 30% of Bitcoin sits in wallets vulnerable to quantum attacks."

Carvalho noted that while major institutions like BlackRock (NYSE:BLK) and agencies such as the NSA are preparing for a quantum-secure future, "investors remain overconfident in the current cryptographic defenses."

He added, "If even one high-profile wallet is compromised, trust in the system could collapse overnight."

Roshan Robert, U.S. CEO of OKX, emphasized the broader context: "Bitcoin's rise isn't just speculative. It reflects how capital preservation is being redefined across institutions and sovereigns."

With price targets between $114,000 and $125,000 being flagged by several analysts as the next resistance zones, the immediate focus remains on ETF flows and macro data, including U.S. labor figures and central bank remarks later this week.

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This article Bitcoin Breaks $111,000 As Experts Hail 'Regime Shift' originally appeared on Benzinga.com

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