Forecast Trend Report by Period
Bitcoin’s recent price pullback was driven more by investors trimming exposure to risk assets than by fears that advances in quantum computing could undermine cryptographic security.
A Grayscale report published on May 5 said the decline in Bitcoin reflected de-risking in growth-stock-heavy portfolios more than any threat posed by progress in quantum computing.
While quantum computers could become a long-term threat to encryption, they are unlikely to be the main reason for Bitcoin’s latest decline, the asset manager wrote.
The report also pointed to the recent tendency for shares of publicly traded quantum-computing companies to move in tandem with Bitcoin. If advances in quantum-computing technology were weighing on Bitcoin, those stocks should have risen instead of falling as well, it said.
The simultaneous decline in Bitcoin and quantum-computing stocks reflects broader de-risking across growth shares tied to changes in the artificial-intelligence industry, according to Grayscale. That suggests shifts in macro investor sentiment have had a bigger effect than any specific technology risk.
Bitcoin still functions as a store of value in diversified portfolios, the report added, and prices could recover even before quantum-resistant upgrades are completed.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
