Bitcoin’s recent price decline has sparked debate across the crypto industry, with some investors blaming growing concerns about quantum computing. However, Bitcoin developer Matt Corallo says that explanation simply doesn’t hold up.
Speaking with journalist Laura Shin on the Unchained podcast, Corallo dismissed the idea that quantum computing fears are materially impacting Bitcoin’s price.
“I strongly disagree with the characterization that Bitcoin’s current price is materially because of some kind of quantum risk,” Corallo said. According to him, if investors were genuinely worried that quantum computers could soon break Bitcoin’s cryptography, the market would reflect that in relative performance.
If Quantum Risk Were Real, Ethereum Would Be Outperforming
Corallo argues that if quantum computing were a serious short-term threat to Bitcoin, capital would be rotating into Ethereum. But that’s not happening.
Bitcoin has fallen significantly from its October all-time high, while Ethereum has also struggled and remains far from prior peaks. If investors believed Bitcoin was uniquely vulnerable, Ethereum would likely be gaining ground against it — not moving sideways or declining.
The Ethereum Foundation recently outlined its long-term commitment to post-quantum readiness as part of a broader protocol security initiative. Some Bitcoin critics argue that Bitcoin developers are not moving quickly enough toward quantum resistance. However, Corallo maintains that professional market participants are not pricing in quantum risk as an imminent danger.
Instead, he suggests that parts of the Bitcoin community may be searching for a scapegoat to explain lackluster performance.
“There are a lot of Bitcoiners who want to blame something,” he noted, emphasizing that broader macro and capital allocation trends are more likely at play.
AI Investment Boom Competing With Bitcoin for Capital
According to Corallo, a more realistic explanation for Bitcoin’s recent weakness is increased competition for investor capital — particularly from artificial intelligence.
AI has rapidly emerged as a capital-intensive sector attracting enormous institutional investment. From infrastructure to data centers and chip manufacturing, AI-related projects are drawing funds that might otherwise flow into alternative assets like crypto.
Corallo described AI as a “massive new investment class” that is directly competing for capital. Traditional equity markets are seeing strong interest in companies positioned to benefit from AI-driven value creation, which may be pulling liquidity away from digital assets.
Not everyone agrees with Corallo’s view.
At Cointelegraph’s LONGITUDE event, Capriole Investments founder Charles Edwards argued that quantum risk should indeed be factored into Bitcoin’s valuation until the network becomes fully quantum-resistant.
Meanwhile, entrepreneur Kevin O’Leary has downplayed the likelihood of quantum computers being used to attack Bitcoin, suggesting the technology would be far more valuable in fields such as medical research.
Even major financial institutions are acknowledging the theoretical risk. Asset management giant BlackRock updated filings for its iShares Bitcoin Trust (IBIT) to include language warning investors about potential quantum computing threats to the Bitcoin network.
