Bitcoin Catching Up to Gold Narrative
Bitcoin is catching up to the 'digital gold' narrative, signaling 'opportunity within risk' [https://x.com/i/status/2032111206228500520]. Despite pullbacks, there are bullish signals across altcoins [https://x.com/i/status/2032111206228500520]. However, Ark Invest warns that 1/3 of the Bitcoin supply is at quantum risk [https://x.com/i/status/2032169884486947218].
Ark Invest estimates that roughly 34.6% of the Bitcoin supply, about 6.9 million BTC worth approximately $483 billion, is vulnerable to quantum computing threats. This risk stems from elliptic curve cryptography (ECC), which secures Bitcoin ownership through digital signatures. Quantum computers could theoretically derive private keys from public keys, potentially enabling theft of funds. The vulnerable portion includes 5 million BTC susceptible due to address reuse, 1.7 million BTC in early P2PK addresses, and 200,000 BTC in P2TR addresses. Coins in P2PK addresses are considered most at risk because the public key is already visible on-chain. The report suggests quantum-resistant upgrades, like ML-DSA or SLH-DSA, may be needed by the mid-2030s. Despite pullbacks, bullish signals are appearing across altcoins. TOTAL3, which tracks the total crypto market capitalization excluding Bitcoin and Ethereum, has shown an upward trend. A surge in XRP withdrawal transactions and roughly $1.4 billion of inflows into XRP exchange-traded funds (ETFs) have sparked speculation that XRP could spearhead the next altcoin rally.
