Bitcoin News Today: Bitcoin Prepares for Quantum Threat With 25% At Risk

Bitcoin is preparing for a future where quantum computing poses a significant threat to its security. A new Bitcoin Improvement Proposal (BIP) titled “Post Quantum Migration and Legacy Signature Sunset” has been introduced, aiming to phase out legacy signature schemes that are vulnerable to quantum attacks. This proposal underscores the need for proactive measures to safeguard Bitcoin against potential quantum threats, as an attack on Bitcoin could be politically or maliciously motivated, aiming to destroy value and trust rather than extract value.

The proposal highlights that up to 25% of all Bitcoin could be at risk if quantum-capable computers emerge, as these coins reside in addresses with exposed public keys, which are prime targets for quantum attacks. The BIP aims to retire quantum-vulnerable Bitcoin address types and incentivize the use of post-quantum cryptography. Experts warn that quantum computers could crack private keys within a decade, potentially risking a flood of dormant Bitcoin entering the market. Although quantum computers cannot yet break Bitcoin’s cryptography, the technological gap is closing rapidly, with some experts predicting that quantum-capable machines could emerge as early as 2027–2030.

In parallel, Bitcoin exchange reserves have plummeted to their lowest level since BTC traded at $15,000, signaling intensified long-term holding and reduced sell pressure. This trend indicates a bullish outlook for Bitcoin, as the reduced supply on exchanges means less selling pressure, potentially extending Bitcoin’s historic high rollercoaster ride. The apex cryptocurrency recently reached a new all-time high (ATH) price of $122,838, and even though it has pulled back to $119,009, the slashed exchange supply remains a positive indicator.

This development is part of a broader trend in the Bitcoin ecosystem, where long-term holding and reduced sell pressure are becoming more prevalent. The establishment of a spot Bitcoin and Ethereum trading service for institutional clients by banking giant Standard Chartered further underscores the growing institutional interest in cryptocurrencies. This service, aimed at asset managers and corporates, is a significant step towards mainstream adoption and integration of digital assets into traditional financial systems.