India Blocks Prediction Markets, Bitcoin Quantum Risks Exposed, and Hyperliquid HYPE Surges

Welcome to Chain Reaction, by Capital Copilot, your daily dose of the latest in cryptocurrency news, market insights, and blockchain trends. Let's get started! India cracks down on prediction markets as Polymarket goes dark and Kalshi faces a similar fate. The SpaceX IPO filing reveals a surprising Bitcoin portfolio worth over one billion dollars. Hyperliquid's HYPE token surges above fifty-seven dollars as institutional demand heats up through new ETFs. India's Ministry of Electronics and Information Technology has officially blocked Polymarket following an April twenty-fifth advisory. Anonymous government sources confirm authorities are preparing a blocking order for Kalshi as well, potentially by tomorrow. Indian regulators classify prediction markets as prohibited online money gaming under the Promotion and Regulation of Online Gaming Act passed in twenty twenty-five. India's consistently restrictive crypto stance includes a thirty percent flat tax on gains and a one percent tax deducted at source on all transactions. Glassnode research reveals nearly five hundred billion dollars in Bitcoin is vulnerable to future quantum computing attacks. Six point zero four million BTC, representing thirty percent of circulating supply, sits in wallets with exposed public keys. Exchange custody accounts for the highest concentration of risk, with roughly one point six six million Bitcoin held in potentially unsafe wallets. Binance shows eighty-five percent exposure, while Bitfinex, Crypto dot com, and Gemini each show one hundred percent exposure. Coinbase leads industry best practices with only five percent exposure. The U.S. Department of Commerce announced a two billion dollar investment in quantum computing capabilities, with IBM receiving the largest allocation of one billion dollars. Representative Nick Begich introduced the American Reserve Modernization Act on May twenty-first. The legislation would direct the Treasury Department to create and maintain a strategic Bitcoin reserve for a minimum of twenty years. The bill consolidates billions in digital assets currently held across federal agencies from forfeitures and penalties, with seventeen original co-sponsors including bipartisan support. Treasury Secretary Scott Bessent has ruled out agency Bitcoin purchases, though President Trump created a strategic Bitcoin reserve via executive order last year. Hyperliquid's HYPE token crossed fifty-seven dollars as newly launched spot ETFs attracted nearly fifty million dollars in their first week. ETF issuers purchased two point five times as much HYPE as the platform's Assistance Fund during this period. The platform generates approximately eleven million dollars per week in fees. Nearly all revenue is used for token buybacks. HYPE has risen more than one hundred twenty percent year-to-date. Bitcoin is trading near seventy-seven thousand two hundred twenty-seven dollars as long-term holder supply surges to sixteen point three million BTC. The metric increased by over two million Bitcoin during the current bear market. Spot Bitcoin ETFs experienced over one point four billion dollars in outflows this week, with BlackRock's IBIT leading withdrawals at over one billion dollars. SpaceX filed its IPO prospectus revealing holdings of eighteen thousand seven hundred twelve BTC valued at one point two nine billion dollars. The company purchased the Bitcoin for six hundred sixty-one million dollars, representing over one hundred percent gains. That's a wrap for today's edition of Chain Reaction by Capital Copilot. We hope you're feeling more informed and ready to navigate the cryptoverse. Until next time, keep your digital wallets ready!