Bitcoin Whales Are Not Selling Over Quantum Fears, Analyst Says
Bitcoin whales have not identified quantum computing risks as a reason for selling, according to Galaxy Digital, while institutional investors have flagged quantum concerns as a reason to avoid buying the. . .
Bitcoin whales have not identified quantum computing risks as a reason for selling, according to Galaxy Digital, while institutional investors have flagged quantum concerns as a reason to avoid buying the crypto asset. Key TakeawaysGalaxy analyst says bitcoin whales have not linked selling activity to quantum risks. Institutional investors have considered quantum fears when deciding whether to buy bitcoin. Old bitcoin supply movement surged before the “great distribution” largely came to an end. Quantum Fears Appear to Be Influencing Buyers, Not Bitcoin SellersBitcoin’s largest holders have not attributed selling activity to quantum computing risks, according to Alex Thorn, managing director and head of firmwide research at Galaxy Digital, separating the technology debate from recentwhaleactivity. On July 15, hewroteon X:“We work with a lot ofwhalesand none has mentioned quantum as a reason for selling. ”The comment suggests that quantum concerns have enteredbitcoin’s investment debate without becoming an identified reason for large-holder selling. Institutional investors appear to be approaching the issue differently. “Have heard quantum fears as a reason not to buy from institutional investors, though,” Thorn revealed, indicating that concerns may be affecting potential buyers rather than existing holders looking to exit positions. The distinction comes asbitcoininvestors continue examining the reasons behind major supply movements from older wallets. Galaxy’s research suggests recentwhaleactivity reflects a broader distribution cycle rather than concerns about future quantum computing threats. Galaxy’s ‘Great Distribution’ Saw Old Bitcoin Return to ActivityGalaxy Research data show that large amounts of olderbitcoinreturned to activity during 2024 and 2025, creating one of the biggest waves of dormant supply movement in the network’s history. “An enormous amount of oldBTCcame online and moved onchain in 2024 and 2025, rivaled only by 2017,” Thornstatedin another July 15 X post. The head of research labeled this period a “great distribution,” describing the movement of previously dormant coins back into circulation. He noted:“This ‘great distribution’ is mostly over and 2026 is on pace to see less than half the amount of awakened coins as last year. ”The decline in awakened coins suggests the large wave of olderbitcoinmovement has slowed. However, on-chain movement alone does not identify whether coins were sold, transferred between wallets, moved by custodians, or used for other purposes. Bitcoin’s Quantum Challenge Remains Focused on Future PreparationThe quantum computing debate aroundbitcoincenters on whether future quantum machines could threaten existing cryptographic protections and whether the network can adapt before that becomes a practical risk. Researchers have examined potential vulnerabilities in digital signatures and possible approaches for strengtheningblockchainsecurity. The challenge forBitcoindevelopers is preparing for a potential future threat before quantum computers reach the capability required to compromise existing protections. Any major cryptographic transition would require coordination acrossbitcoinparticipants. Thorn remarked:“Work is being done on quantum and more work is coming, so I think those fears will assuage. ”The comment reflects the view that continued research and preparation could reduce investor concerns over time. Quantum risk has also appeared in institutional research on digital assets. Coinbase Institutional has described quantum computing as a long-term consideration forbitcoinand discussed possible mitigation strategies for addressing the threat. The market question now is whether quantum concerns remain a long-term consideration for investors or eventually become a factor inbitcoinpositioning. For now, Galaxy’s comments indicate that the issue is influencing some potential buyers while remaining separate from reportedwhaleselling decisions.