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How Real Is the Threat?

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How Real Is the Threat?

Concerns that quantum computing could one day break Bitcoin’s cryptography have resurfaced. Yet, a new report by CoinShares argues that the quantum risks remain distant, with only a fraction of Bitcoin’s supply potentially vulnerable.

The report frames quantum computing as a long-term engineering challenge. It argues that Bitcoin has ample time to adapt well before quantum machines reach a cryptographically relevant scale.

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The Quantum Threat Assessment For Bitcoin

In the report titled “Quantum Vulnerability in Bitcoin: A Manageable Risk,” CoinShares’ Bitcoin Research Lead Christopher Bendiksen explained that Bitcoin relies on elliptic-curve cryptography to secure transactions. 

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In theory, a sufficiently powerful quantum computer could use Shor’s algorithm to derive private keys from public keys. This could enable unauthorized spending.

However, Bendiksen noted that such an attack would require quantum machines with millions of stable, error-corrected qubits. This is far beyond today’s capabilities.

“Breaking secp256k1 within a practical amount of time (<1 year) needs 10-100,000 times the current number of logical qubits; relevant quantum tech at least 10 years off. Long-term attacks can take place over years—could become feasible within a decade; short-term (mempool attacks) need <10-min computations—infeasible in anything but the very long term (decades),” the report read.

The report also examined the scope of Bitcoin’s real exposure. According to Bendiksen, only about 1.6 million BTC, roughly 8% of the total supply, resides in legacy Pay-to-Public-Key (P2PK) addresses where public keys are already exposed. However, the true practical risk is significantly smaller.

Of that amount, the report estimated that only around 10,200 BTC could plausibly be targeted in a way that would have an impact. This represents less than 0.1% of Bitcoin’s total supply.

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“The remaining ~1.6 million all sit in 32,607 individual, ~50 btc UTXOs, that would take millennia to unlock even in the most outlandishly optimistic scenarios of technological progression in quantum computing,” Bendiksen stated.

The remaining vulnerable coins are dispersed across tens of thousands of addresses. This distribution would make large-scale exploitation slow and operationally impractical even for advanced quantum systems, according to the analysis.

This limited exposure exists because of modern address types. Pay-to-Public-Key-Hash (P2PKH) and Pay-to-Script-Hash (P2SH) do not reveal public keys until coins are spent, sharply reducing the attack surface.

While post-quantum cryptographic proposals exist, Bendiksen cautioned against premature or forced changes. He warned they could introduce new risks, weaken decentralization, or rely on cryptographic schemes that have not yet been sufficiently tested in adversarial environments.

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“For the perceivable future, market implications appear limited,” Bendiksen added. “The greater concern is preserving Bitcoin’s immutability and neutrality, which could be jeopardised by premature protocol changes.”

Meanwhile, this outlook aligns with views previously expressed by other industry figures, including Casa co-founder Jameson Lopp and Cardano founder Charles Hoskinson. Both of whom have argued that quantum computing poses no near-term threat to Bitcoin’s cryptography.

Quantum Risk No Longer Ignored as Investors and Developers Prepare

That said, not all market participants share this view. Some institutional investors are increasingly factoring quantum computing risk into their Bitcoin exposure rather than dismissing it as a distant concern. 

BeInCrypto reported that strategist Christopher Wood reduced a 10% Bitcoin allocation from Jefferies’ model portfolio, reallocating capital toward gold and mining equities. This move came amid concerns that future advances in quantum computing could threaten Bitcoin’s security.

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At the same time, several blockchain projects are already taking proactive steps. Coinbase, Ethereum, and Optimism have publicly outlined efforts to prepare for a post-quantum future.

Charles Edwards of Capriole Investments has also suggested that Bitcoin’s price may need to decline further before the network attracts sufficient attention to the issue of quantum security. He framed market pressure as a potential catalyst for broader technical discussion.

“$50K not that far away now. I was serious when I said last year that price would need to go lower to incentivize proper attention to Bitcoin quantum security. This is the first promising progress we have seen to date,” he said.

Edwards added that substantial work still lies ahead, warning that Bitcoin’s quantum preparedness efforts would need to accelerate in 2026.

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Crypto World

Ethereum Eyes 25% Rally as Top ETH Whales Return to ‘Profitable State’

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Ethereum Eyes 25% Rally as Top ETH Whales Return to 'Profitable State'

Ethereum’s native token, Ether (ETH), may rise by around 25% in the coming months as its richest whale group becomes profitable for the first time since early February.

Key takeaways:

  • ETH gained 25% in three months and 50% in six months on average after top whales returned to profit in past cycles.

  • Ether could rally above $2,750 by June if the on-chain whale metric signal plays out.

Whale metric signals ETH is bottoming already

The unrealized profit ratio of wallets holding more than 100,000 ETH has flipped back above zero, according to data resource CryptoQuant. In other words, this whale cohort is no longer sitting on aggregate paper losses.

ETH whales unrealized profit ratio (100K+). Source: CryptoQuant

In the past, similar transitions to a “profitable state marked the starting point of an uptrend,” said on-chain analyst CW.

ETH delivered nearly 25% returns on average three months after the whale ratio flipped to positive. Similarly, its price gained roughly 50% after six months and 300% after a year into the signal.

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The price behavior suggests that once top ETH whales return to aggregate profit, they face less pressure to sell defensively. At the same time, the shift can strengthen broader market confidence by signaling renewed conviction among the richest ETH holders.

ETH may head toward the $2,750 area by June and to over $3,200 by September if the historical post-signal pattern holds.

Related: Early Ethereum whale rebuilds stack with $19.5M in ETH buys

Still, the whale ratio metric is not flawless. In 2018, for instance, ETH dropped 17.5% in the month after a similar flip and eventually tumbled nearly 70%.

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Onchain data caps Ether’s upside at $2,640

Another on-chain signal is reinforcing Ethereum’s recovery case.

Glassnode data shows ETH rebounding from its lowest MVRV deviation band (blue), a setup similar to Q2 2022 and Q2 2025, when price recovered from undervalued levels and climbed back above realized price.

ETH MVRV extreme deviation pricing bands. Source: Glassnode

At current rates, ETH remains below its realized price (purple) at $2,353, which remains the first key recovery level. A break above that threshold could open the door toward the -0.5 sigma band (teal) near $2,640.

On the downside, failure to reclaim realized price could keep ETH exposed to a retest of the lowest deviation band near $1,651.

Ethereum’s technicals reiterate rally above $2,600

From a technical perspective, ETH has broken above its ascending triangle pattern and is now pulling back toward the former resistance trendline.

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Such retests are common after breakouts, as markets often revisit the breakout level to confirm it has flipped into new support.

ETH/USD daily chart. Source: TradingView

Ether could resume its recovery toward the triangle’s measured upside target at around $2,625 or higher if the upper trendline holds as support.

That level also sits within the broader on-chain recovery range outlined by Glassnode’s MVRV bands, adding confluence to the bullish setup.

A failed retest, on the other hand, would weaken the breakout structure and risk sending ETH back toward the lower support zone near $1,950-$2,000.