Traditional finance issues a major warning: Quantum computing threats are approaching Bitcoin's security defenses

Wall Street’s well-known investment bank Jefferies’ Chief Strategist Christopher Wood recently made a notable move—completely removing the 10% Bitcoin allocation from his model portfolio. This is not a simple stop-loss action but a strategic adjustment based on long-term risk considerations: the development of quantum computing could undermine Bitcoin’s cryptographic security. This move marks the beginning of traditional financial institutions incorporating quantum computing risks into mainstream asset allocation considerations.

Why Quantum Computing Threats Are Now Being Taken Seriously

Where is the core risk?

Bitcoin’s security relies on two cryptographic algorithms: ECDSA (used for signatures) and SHA-256 (used for proof of work). According to current theoretical research, if quantum computers become sufficiently powerful, they could theoretically crack ECDSA within an acceptable timeframe, allowing private keys to be derived and threatening the security of Bitcoin assets.

Wood’s statement is more direct: if breakthroughs in quantum computing continue, the long-term, pension-like store of value properties of Bitcoin will face challenges. This reflects an important shift—from academic discussion to actual asset allocation risk.

Why focus on this now?

Several factors are driving this shift:

• Substantive progress in quantum computing technology is no longer a distant topic
• Traditional financial institutions are increasingly sensitive to long-term risks
• The proportion of crypto assets in institutional portfolios is rising, making such risks quantifiable
• Long-term allocators like pension funds are particularly sensitive to risks 10-20 years down the line

Market Response and Current Situation

No significant fluctuation in BTC price

According to the latest data, BTC is currently priced at $95,459.30, down 1.54% in 24 hours, but up 5.70% over 7 days. This indicates that the market’s reaction to Wood’s removal has not triggered panic.

Key data comparison:

This subdued market response may be due to two reasons: first, Jefferies’ 10% adjustment is relatively modest; second, the market generally believes that the threat of quantum computing to Bitcoin still requires many years to materialize.

Changing attitude of traditional finance

It’s important to note that Wood is Jefferies’ Global Equity Strategist, and this role is crucial. This is not just an individual analyst’s opinion but a strategic stance representing a major investment bank. This implies:

• Quantum computing risk has moved from a fringe topic to a mainstream risk assessment in institutional circles
• Similar adjustments may be seen in other institutions gradually
• The long-term outlook for Bitcoin allocations has been substantively affected

Possible future directions

Short-term points of focus

When will the actual threat of quantum computing to Bitcoin arrive? It depends on several technological breakthroughs: a sufficient number of stable qubits, low error rates, and strong error correction capabilities. Public information suggests these breakthroughs may still take 5-15 years.

However, institutional investors tend to act proactively—waiting until the risk actually materializes might be too late. Therefore, we may see more “precautionary” adjustments like this.

Industry responses

The Bitcoin community and crypto industry are not idle. Discussions include:

• Developing quantum-resistant cryptographic algorithms
• Exploring hard forks to upgrade Bitcoin protocols
• Completing defensive upgrades before quantum computing matures

However, these solutions involve technical complexity and consensus challenges, making short-term implementation difficult.

Summary

While Jefferies’ move is modest in scale, it sends an important signal: traditional financial institutions are elevating quantum computing risks from theoretical discussions to actual asset allocation decisions. This does not mean Bitcoin faces immediate danger, but that long-term risks are beginning to enter mainstream awareness.

For investors, this highlights two points: first, the threat of quantum computing is a real long-term risk that requires ongoing industry attention; second, the attitude shift among institutional investors may gradually influence the allocation landscape of crypto assets. The key follow-up is whether this move will trigger more institutions to follow suit and whether the Bitcoin community will accelerate efforts to develop quantum-resistant technologies.