Quantum‑Computing Fears Not Driving Bitcoin’s Recent Slide, Says Core Developer
February 20 2026
Bitcoin has lost roughly 46 % of its value since the October 2023 peak of $126,100, falling to just over $67,000 at the time of writing. While some market observers have pointed to the specter of quantum computers cracking the Bitcoin network as a catalyst for the downturn, lead Bitcoin developer Matt Carallo pushed back against that narrative during his appearance on the Unchained podcast with journalist Laura Shin.
Carallo’s main arguments
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Quantum risk is not a price driver today. Carallo said he “strongly disagrees” with the idea that quantum‑computing concerns are materially affecting Bitcoin’s market price. He argued that if the market were truly worried about a near‑term quantum threat, the opposite would be observable: “Ethereum would be soaring.” In reality, Ether (ETH) is down about 58 % from its own October peak, trading near $2,000, which undermines the hypothesis that investors are fleeing Bitcoin specifically because of quantum anxiety.
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Scapegoating a technology gap. Carallo noted a tendency among some Bitcoin community members to blame external factors for “lackluster performance,” suggesting that the quantum narrative may be a convenient scapegoat rather than a genuine risk assessment.
- Long‑term vs. short‑term risk. While he acknowledges that quantum computers could eventually pose a security challenge for any public‑key cryptography–based blockchain, Carallo stressed that market makers do not view this as an imminent problem. The technology required to break Bitcoin’s secp256k1 signatures remains years away, and the ecosystem has time to implement post‑quantum upgrades.
A broader market context
Carallo highlighted a different, more immediate pressure on Bitcoin: competition for capital. He pointed to the explosive growth of artificial intelligence (AI) investments, describing AI as “super capital‑intensive” and a “massive new investment class” that is pulling funds away from crypto assets. According to Carallo, investors are increasingly allocating money to AI‑driven equities and venture projects, which could be a stronger explanatory factor for the recent dip in Bitcoin’s price.
Ethereum’s quantum‑readiness initiative
The Ethereum Foundation has taken a proactive stance on the quantum question. In a protocol update released on Wednesday, the foundation outlined a long‑term roadmap for post‑quantum security as part of a broader “security initiative” that includes gas‑limit adjustments and other hardening measures. This signals that, at least on the Ethereum side, developers are preparing for the eventuality of quantum threats even if the risk is not currently priced into the market.
Contrasting viewpoints
Not everyone in the crypto space shares Carallo’s optimism:
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Charles Edwards, founder of Capriole Investments, argued at Cointelegraph’s LONGITUDE event on Feb. 12 that investors should already be discounting Bitcoin’s valuation to account for quantum risk until a concrete solution is in place. He described the risk as a “price‑drag” that needs to be factored into any fair‑value model.
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Kevin O’Leary, speaking to Magazine in December, echoed the sentiment that quantum attacks on Bitcoin would be an inefficient use of resources compared with more promising applications such as medical research.
- BlackRock, the world’s largest asset manager, warned investors in its May 2025 filing for the iShares Bitcoin ETF (IBIT) that quantum computing represents a “potential risk to the integrity of the Bitcoin network,” underscoring that institutional players are still tracking the issue closely.
Analysis
Carallo’s comments bring a needed dose of perspective to a market narrative that can easily become sensationalized. While quantum computing remains a legitimate long‑term security concern for all blockchain platforms that rely on elliptic‑curve cryptography, the timeline for a practical quantum attack on Bitcoin is still uncertain and likely spans multiple years, if not decades.
The more immediate driver of capital allocation appears to be sector rotation toward AI and other high‑growth technologies. As AI startups attract billions in venture funding and public‑market investors chase “AI‑enabled” returns, discretionary crypto capital may be redirected, pressuring Bitcoin’s price irrespective of any quantum considerations.
Moreover, Ethereum’s explicit roadmap for post‑quantum readiness may serve as a market differentiator, but its impact on price is muted by broader macro trends that affect all digital assets.
Key Takeaways
- Quantum risk is a long‑term concern, not a short‑term price catalyst for Bitcoin, according to developer Matt Carallo.
- Ethereum’s price movement does not corroborate a quantum‑fear‑driven sell‑off; both BTC and ETH have suffered similar declines since October 2023.
- Capital is increasingly flowing into AI‑related investments, which Carallo identifies as a more plausible explanation for Bitcoin’s recent depreciation.
- Some market participants still factor quantum risk into valuations, as highlighted by Charles Edwards, Kevin O’Leary, and BlackRock’s ETF filing.
- The Ethereum Foundation is proactively planning post‑quantum upgrades, reflecting a longer‑term security strategy that may influence future investor confidence.
As the crypto ecosystem continues to mature, both technical resilience and macro‑economic forces will shape price dynamics. While quantum‑computing threats will eventually need to be mitigated, current market data suggests they are not the primary driver of Bitcoin’s present downturn.
Source: https://cointelegraph.com/news/bitcoin-price-quantum-computing-fears-ethereum-developer?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
