Quantum computing threat heats up, Wall Street begins reassessing Bitcoin risk exposure

According to the latest reports, the chief strategist of the world’s leading investment firm Jefferies, Christopher Wood, has made a significant decision: to completely liquidate his Bitcoin holdings in his investment portfolio, which account for approximately 10%. The reasoning behind this move is thought-provoking—the rapid iteration of quantum computing technology could pose a long-term threat to Bitcoin’s key security system.

Quantum Computing Becomes a New Consideration in Asset Allocation

Wood’s core view is that, as breakthroughs in quantum computing research continue, the elliptic curve cryptography that Bitcoin relies on may face the risk of being deciphered in the future. Once quantum computing reaches sufficient computational power, traditional encryption mechanisms could become ineffective, directly threatening the fundamental assumption of Bitcoin as a store of value.

This risk is no longer just a technical discussion but is gradually entering the risk assessment frameworks of mainstream financial institutions. Many asset managers are beginning to take this long-term hidden danger seriously and are re-evaluating the appropriate proportion of Bitcoin in risk-hedging portfolios.

Market Awareness of Quantum Risks Is Increasing

It is worth noting that industry observers like Raoul Pal are also paying attention to the collision between traditional asset allocation logic and emerging risks. The progress of quantum computing development is changing some top asset allocators’ judgments on long-term holding strategies.

From a risk management perspective, even if the quantum threat is unlikely to materialize in the near term, proactively adjusting allocation strategies reflects a further increase in institutional investors’ caution. This signal indicates that the long-term allocation value of Bitcoin is being redefined.