Bitcoin’s recent sell-off has sparked debates over the role of quantum computing fears, but one prominent developer argues that these concerns are misplaced. Matt Carallo, a Bitcoin developer, told journalist Laura Shin on the Unchained podcast that the market’s downturn is not primarily driven by quantum risks.
“I strongly disagree with the characterization that Bitcoin’s current price is materially affected by some kind of quantum risk,” Carallo stated. He further noted that if quantum computing were a significant factor, Ethereum’s price would be soaring in comparison to Bitcoin. However, Ethereum (ETH) has dropped 58% since early October, trading at $1,957 at the time of publication, according to CoinMarketCap.
Ethereum’s Proactive Approach to Quantum Readiness
While Bitcoin faces skepticism over its preparedness for quantum computing threats, the Ethereum Foundation is taking proactive steps. In its recent protocol update, the foundation outlined plans for long-term post-quantum readiness as part of its broader security initiative.
“There are a lot of Bitcoiners who want to blame something, blame someone for lackluster performance,” Carallo explained. He emphasized that the Bitcoin community is likely looking for a scapegoat rather than addressing more immediate market dynamics.
Competing for Capital: Bitcoin vs. AI
Carallo suggested that a more plausible reason for Bitcoin’s price decline is the intense competition for capital in the tech sector. Artificial intelligence (AI) has emerged as a massive new investment class, drawing significant interest and investment from both institutional and retail investors.
“AI is super capital-intensive,” Carallo noted. “It’s a massive new investment class that is substantially competing for capital.” He added that there is a lot of interest in the value accrual potential of AI in traditional equities, which could be diverting funds from the cryptocurrency market.
Divergent Opinions Among Bitcoiners
Not all Bitcoin enthusiasts share Carallo’s views. Capriole Investments founder Charles Edwards argued at Cointelegraph’s LONGITUDE event on Feb. 12 that the quantum risk should be priced into Bitcoin until it becomes quantum-resistant.
“Today, you kind of have to start to discount the value of Bitcoin based on that risk until it’s solved,” Edwards said.
Kevin O’Leary, an entrepreneur and investor, offered a different perspective. He told Magazine in December that using quantum computing to crack Bitcoin might not be the most efficient use of the technology, suggesting that areas such as medical research offer more upside.
Institutional Insights and Regulatory Concerns
In May 2025, BlackRock, the world’s largest asset manager, updated the registration statement for its iShares Bitcoin ETF (IBIT) to warn investors about the potential risks to the integrity of the Bitcoin network posed by quantum computing. This update underscores the growing awareness of quantum risks among institutional investors and regulators.
Despite these concerns, Carallo remains confident that quantum computing is not an immediate threat to Bitcoin. He believes that market makers and investors are more focused on the current competitive landscape and the broader economic factors affecting the market.
As the debate over Bitcoin’s quantum resistance continues, the cryptocurrency market will likely see more volatility and evolving narratives. For now, the competition from emerging technologies like AI and the broader economic environment may be the more significant factors influencing Bitcoin’s price.
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