Emre Yumlu 
As Bitcoin retraced roughly 46% from its all-time high, some market participants pointed to quantum computing risks as a possible driver of the decline. Bitcoin developer Matt Corallo has firmly rejected that narrative, arguing that the explanation does not align with broader market behavior.
Speaking on a recent podcast appearance, Corallo stated that attributing Bitcoin’s current weakness to quantum threats is misguided. In his view, if investors were genuinely repricing crypto assets due to imminent quantum risks, the impact would not be isolated to Bitcoin alone.
Bitcoin Has Fallen 46% From Its Peak
Corallo highlighted Ethereum as a key comparison. If quantum-related vulnerabilities were the dominant concern, Ether should be significantly outperforming Bitcoin. Instead, Ether has fallen 58% since the major crypto market downturn in October and was trading around $1,957 at the time referenced.
Meanwhile, Bitcoin declined from its October all-time high of $126,100 to approximately $67,162, representing a 46% pullback. While the correction has been substantial, Corallo argues that price action across major digital assets does not support the idea that quantum computing fears are driving the sell-off.
Long-Term Risk, Not Immediate Threat
The debate intensified after some community members suggested that Bitcoin developers have been too slow in preparing the network for a quantum-resistant future. In contrast, the Ethereum Foundation recently included long-term post-quantum readiness in a broader protocol security update.
Corallo acknowledged that quantum computing presents a theoretical long-term risk. However, he emphasized that market makers do not appear to view it as an urgent, short-term threat. According to him, parts of the Bitcoin community may simply be searching for a clear cause to explain the asset’s underperformance.
Capital Competition in a New Era for Bitcoin
Instead of quantum risk, Corallo suggested a structural shift in capital allocation as a more plausible explanation. He noted that Bitcoin is now competing for investment flows in ways it previously did not, particularly against capital-intensive sectors such as artificial intelligence.
AI-related investments, he argued, represent a massive and rapidly expanding asset class. Traditional equity markets are pricing in significant value creation tied to AI, which may be drawing capital away from digital assets.
Diverging Opinions Remain
Not everyone agrees with Corallo’s assessment. Capriole Investments founder Charles Edwards has argued that quantum risk should be reflected in Bitcoin’s valuation until the issue is definitively addressed. Entrepreneur Kevin O’Leary, on the other hand, has suggested that quantum computing resources would likely be more effectively deployed in areas like medical research rather than attempting to break Bitcoin.
Additionally, BlackRock updated the registration statement for its iShares Bitcoin ETF to warn investors about potential risks quantum computing could pose to the integrity of the Bitcoin network.
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