Bitcoin May Be Entering A ‘New Regime’ As Quantum Risks Grow, Says Coinbase Research Head

• Coinbase’s research head warned that advances in quantum computing could challenge Bitcoin’s long-term security assumptions.
• He outlined risks ranging from disruptions to Bitcoin mining economics to the potential theft of funds from exposed wallets.
• The comments come as Bitcoin Core developers flagged a separate wallet-related bug that could lead to financial losses.

Bitcoin’s long-term security model could face new challenges as quantum computing technology advances, according to David Duong, Head of Research at Coinbase (COIN).

Duong stated on LinkedIn that Bitcoin (BTC) may be entering “a new regime” as quantum computing advances, even if the threat is not immediate. “Investors are becoming increasingly concerned that quantum computing risks may be approaching faster than previously thought,” he wrote. 

Duong said quantum computing “[poses] two separate threats” to Bitcoin, explaining that it could eventually break BTC’s cryptographic signatures, allowing attackers to steal funds from vulnerable addresses, while also enabling more efficient block mining and disrupting the network’s economic model. 

Bitcoin (BTC) was trading at $93,794, up by 1.1% in the last 24 hours. On Stocktwits, retail sentiment around Bitcoin remained in ‘extremely bullish’ territory, as chatter levels changed from ‘normal’ to ‘high’ over the past day.

While he said quantum computing remains a “lower-priority concern for now” due to technical constraints, Duong added that protecting transaction signatures is increasingly urgent in the long term.

Wallet Risks Highlight Near-Term Security Concerns

The warning comes as developers at Bitcoin Core disclosed a wallet migration bug affecting versions 30.0 and 30.1 that, under rare conditions, could delete wallet files and lead to a loss of funds. Developers said a fix will be released in version 30.2 and advised users not to attempt wallet migrations until then.

Coinbase Price Target Cut

Meanwhile, Rosenblatt lowered Coinbase’s stock price target to $325 from $470, while maintaining a ‘Buy’ rating on the shares. Coinbase cited a material slowdown in trading activity following a strong third quarter and record October, now estimating fourth-quarter trading volume of about $207 billion, down 35% from its prior forecast. However, Rosenblatt said much of the slowdown appears priced into the stock and pointed to potential upside from Coinbase’s expanding product offerings. Coinbase Global Inc. (COIN) closed at $254.92 on Monday, up 0.37% in premarket trading. 

Read also: This CEO Calls Polymarket The ‘Palantir For The Terminally Online’

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