Developers are warning that a growing quantum computing threat could compromise 25% of Bitcoin’s supply due to exposed public keys.

To combat this, Jameson Lopp, CTO and co-founder of self-custody service Casa, has proposed a quantum-resistant upgrade to the cryptocurrency’s software.

A Three-Phase Solution

According to a July 15 Bitcoin Improvement Proposal (BIPs), approximately 4 million BTC, including the 1 million believed to belong to Satoshi Nakamoto, are vulnerable to future quantum computer attacks.

“Bitcoin’s current signatures (ECDSA/Schnorr) will be a tantalizing target: any UTXO that has ever exposed its public key on-chain (roughly 25% of all bitcoin) could be stolen by a cryptographically relevant quantum computer,” the post said.

The plan outlines three steps to reduce this threat. The first phase would block users from sending BTC to quantum-vulnerable addresses and instead require the use of a new post-quantum address type called P2QRH.

The second step, planned to begin two years later, would freeze any funds that have not been moved to a secure address. The final phase is still being studied and could allow people to recover frozen assets using a BIP-39 seed phrase.

Lopp presented the initiative at the Quantum Bitcoin Summit in San Francisco, an invite-only gathering of experts focused on protecting BTC against such vulnerabilities. The plan, crafted in collaboration with five other developers, is built around an incentive mechanism that warns users they will lose access to their funds if they do not upgrade. The goal is to push holders toward safer storage methods that quantum computers cannot compromise.

The Quantum Threat

In the proposal, the authors stressed the enormity of the threat posed to the Bitcoin ecosystem by a potential quantum attack:

“Never before has Bitcoin faced an existential threat to its cryptographic primitives,” they wrote. “A successful quantum attack on Bitcoin would result in significant economic disruption and damage across the entire ecosystem.”

Their fear is backed by a past Deloitte study explaining how severe the damage could be. The research demonstrated that if the vulnerable BTC were unlocked and sold following a quantum attack, it would trigger heavy selling pressure on the market. Lopp described this situation as a “liquidation event.”

Elsewhere, Project Eleven, a research group focused on quantum computing, recently announced a competition to measure the real-world risk such technology poses to the leading cryptocurrency’s security.

The group reported that more than 10 million BTC addresses have exposed public keys. This puts about 6.2 million BTC, worth around $500 billion, at risk if quantum computing continues to improve. A separate analysis by CryptoQuant pointed out that these attacks could also affect mining operations.

TL;DR

• Multiple analysts, including Ali Martinez, believe XRP’s price could soon enter undiscovered territory.
• The approval of a futures-based XRP ETF, growing network activity, and rising whale accumulation back the asset’s bullish momentum.

Waiting for a New ATH

Ripple’s XRP has been one of crypto’s rock stars in the past several weeks, with its price pumping to a five-month high of over $3. Currently, it trades just south of that milestone, representing a 32% increase on a 30-day scale.

Meanwhile, XRP’s market capitalization surged past $175 billion, thus surpassing Tether’s USDT and becoming the third-biggest cryptocurrency.

Somewhat expected, crypto X is rammed with users who believe the asset’s rally is nowhere near its end. The popular analyst Ali Martinez, for instance, predicted that XRP could skyrocket to a new historic peak of $4.80 as long as it secures a weekly close above $3.

A weekly close above $3 could send $XRP to a new all-time high of $4.80! pic.twitter.com/fvvq0EpW6j

— Ali (@ali_charts) July 16, 2025

Other market observers who have laid their thoughts on the matter include the X users CRYPTOWZRD and Johnny. The former argued that XRP has flipped the old $2.8 resistance target and has turned it into support.

“One more bullish daily close here would confirm that flip and set the stage for a move to a new all-time high. The next resistance target is $3.65,” they added.

Johnny provided fewer details, simply noticing the token’s impressive performance and forecasting that this could be the move that triggers a new ATH.

The Potential Catalysts

One factor that may have positively influenced the asset’s price is the recent SEC approval of the ProShares Ultra XRP ETF. The product is futures-based, will trade under the ticker UXPR, and is designed to provide twice the daily performance of the token’s price. 

A spot XRP ETF in the USA has yet to receive the green light from the securities regulator, but the chances for approval remain solid at around 86% (before the end of 2025).

The recent growth of XRP’s network and the whales’ activity are also elements that could have contributed to the bull run. For those willing to explore the possible catalysts in detail, please refer to our article here.

Bitcoin’s surge has paused as traders engaged in profit-taking.

This triggered a pullback, which dragged the cryptocurrency near $116,000. It has since staged a recovery of nearly 2%, pushing Bitcoin above $119,000 at the time of writing.

New data has emerged, signaling that BTC is not at a local top but in a transition phase, with timing, behavior, and structure all pointing to further upside.

BTC Makes Room for Alts

According to the analytics firm, SwissBlock’s latest market report, ‘Altcoin Vector,’ beneath the surface, capital rotation has started, and Ethereum is emerging as the next leg of the cycle. The firm said that Bitcoin is consolidating, and not breaking down.

BTC dominance has likely peaked in the short term as capital rotation accelerates across the crypto market. The ETH/BTC ratio is also rising steadily, which is indicative of Ethereum’s relative strength and its ability to attract liquidity from Bitcoin while also lifting the broader altcoin complex.

This is is also driving renewed momentum in other altcoins as liquidity moves within the market rather than exiting it. This trend indicates an expansion phase where capital is redeploying into Ethereum and select altcoins, while simultaneously reducing BTC’s market share.

The rotation means that confidence remains intact as investors seek higher returns beyond BTC.

BTC Hasn’t Topped Yet

While Bitcoin’s pause has triggered rotation into Ethereum and altcoins, SwissBlock argued that the broader cycle for the world’s largest crypto itself remains unfinished.

According to BTC Vector’s Optimal Signal, each major expansion in this cycle has lasted 15-30 days, while the current rally is only on day 12. With capital beginning to rotate into Ethereum, it indicates that the cycle remains incomplete.

To top that, Glassnode’s Short-Term Holder Relative Unrealized Profit also remains well below levels seen during previous cycle tops in January and April 2024, which means that market participants are not exhibiting excessive profit-taking or euphoria yet.

Additionally, both Willy Woo’s Speculation Index and VWAP Liquidity confirm that the market is not overheated, as neither indicator has reached prior cycle extremes. These factors together suggest there is ongoing structural support for Bitcoin to move higher.