Quantum

Cardano

Bitcoin

Bitcoin<a href="https://yellow.com/asset/btc" rel="noopener noreferrer nofollow">(BTC)</a> faces growing scrutiny from institutional investors over quantum computing risks, with new research suggesting that between $650 billion and $750 billion worth of the cryptocurrency could be <a href="https://yellow.com/news/bitcoins-hidden-vulnerability-exposed-how-quantum-computers-could-steal-billions-before-were-ready" rel="noopener noreferrer nofollow">vulnerable to future attacks targeting its cryptographic security</a>.
<h2 id="what-happened-quantum-risk-reshapes-portfolio-strategy">What Happened: Quantum Risk Reshapes Portfolio Strategy</h2>
Jefferies strategist Christopher Wood removed a <a href="https://yellow.com/news/jefferies-strategist-dumps-10-bitcoin-allocation-over-quantum-computing-fears" rel="noopener noreferrer nofollow">10% Bitcoin allocation from his flagship "Greed &amp; Fear" model portfolio</a>, reallocating to physical gold and mining equities.
Wood cited concerns that quantum computers could one day break Bitcoin's Elliptic Curve Digital Signature Algorithm keys, which secure transactions on the network.
A 2025 Chaincode Labs study <a href="https://chaincode.com/bitcoin-post-quantum.pdf" rel="noopener noreferrer nofollow">estimated</a> that 20% to 50% of circulating Bitcoin addresses remain vulnerable to future quantum attacks due to reused public keys.
That <a href="https://beincrypto.com/bitcoin-quantum-computing-risk-institutional-reallocation/" rel="noopener noreferrer nofollow">represents</a> roughly 6.26 million BTC. Bitcoin has underperformed gold significantly this year, falling 6.5% in 2026 while gold surged 55%.
In the meantime, according to Grayscale's updated outlook on digital assets, <a href="https://yellow.com/news/bitcoin-faces-no-near-term-threat-from-quantum-technology-grayscale-says" rel="noopener noreferrer nofollow">Bitcoin faces no immediate price threat from quantum computing</a> in 2026. The investment firm's latest research acknowledges the theoretical risk but dismisses its near-term market impact based on current technology timelines.
Also Read: <a href="https://yellow.com/news/the-one-signal-everyone-missed-before-bitcoin-crashed-and-wiped-out-nearly-dollar1b" rel="noopener noreferrer nofollow">The One Signal Everyone Missed Before Bitcoin Crashed And Wiped Out Nearly $1B</a>
<h2 id="why-it-matters-institutions-diverge-on-risk">Why It Matters: Institutions Diverge on Risk</h2>
David Duong of Coinbase identified two major threats from quantum computing: breaking ECDSA keys and targeting SHA-256, which underpins Bitcoin's proof-of-work system.
Not all institutions are retreating.
Harvard increased its Bitcoin allocation by nearly 240%, raising its investment from $117 million to $443 million in the third quarter. Morgan Stanley began advising wealth management clients to allocate up to 4% of portfolios to digital assets.
Charles Hoskinson of Cardano warned that <a href="https://yellow.com/news/cardanos-hoskinson-says-quantum-threat-wont-hit-crypto-until-2030s" rel="noopener noreferrer nofollow">premature adoption of quantum-resistant cryptography</a> could reduce network efficiency.
DARPA's Quantum Blockchain Initiative suggests meaningful threats may not emerge until the 2030s, though <a href="https://yellow.com/research/what-happens-when-quantum-computers-finally-break-bitcoin" rel="noopener noreferrer nofollow">rapid advances in quantum hardware could accelerate that timeline</a>.
Read Next: <a href="https://yellow.com/news/the-economist-who-sounded-the-alarm-before-2008-now-warns-of-a-far-bigger-crisis" rel="noopener noreferrer nofollow">The Economist Who Sounded The Alarm Before 2008 Now Warns Of A Far Bigger Crisis</a>

Research Flags 20% To 50% Of Bitcoin As Potentially Vulnerable To Quantum Threats

Table of Contents

Yellow News

Other articles published on Jan 21, 2026

Join our free newsletter for daily crypto updates!