Jefferies Strategist Removes Bitcoin Due to Quantum Risks

2 mins mins

Key Points:

Jefferies’ strategist reallocates Bitcoin funds, citing quantum security risks.
10% Bitcoin allocation shifted to gold-based assets.
Quantum computing progress could threaten Bitcoin’s security.

Christopher Wood, Jefferies’ global equity strategist, removed a 10% Bitcoin allocation from his model portfolio, highlighting quantum computing risks as a concern for Bitcoin’s security.

This decision signals potential challenges for Bitcoin’s role as a long-term asset, raising investor concerns about cryptographic vulnerabilities. Market reactions remain cautious with no regulatory updates.

Jefferies Strategist Reallocates 10% Bitcoin to Gold

Christopher Wood of Jefferies recently reallocated his Bitcoin holdings, transferring 10% from Bitcoin to gold-based assets. This decision stems from concerns over quantum computing advancements potentially undermining Bitcoin’s cryptographic security.

Quantum computing poses a threat to Bitcoin’s role as a reliable store of value. This is prompting major considerations among investors and could shift market dynamics towards traditional assets like gold.

David Duong, Head of Investment Research, Coinbase: “Bitcoin’s long-term security may be transitioning into a new phase as quantum computing progresses.”

While reactions vary, David Duong of Coinbase noted that Bitcoin’s long-term security is under new scrutiny. Investor Will Carter observed on Twitter that many investors are seeking solutions while developers seem unaware of quantum-related risks.

Quantum Computing Spurs $1.9 Trillion Bitcoin Market Concerns

Did you know? In the past, Bitcoin’s cryptographic security has faced risks, but rapid advancements in quantum computing mark a distinctive pivotal moment, prompting significant realignment of traditional portfolio strategies.

As of January 16, 2026, Bitcoin (BTC) is valued at $95,135.06 with a market cap of $1.90 trillion, comprising 59.10% market dominance, according to CoinMarketCap. Over 24 hours, the price decreased by 0.90%, amid a trading volume drop of 32.55%, totaling $37.61 billion.

bitcoin-daily-chart-5677 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 18:37 UTC on January 16, 2026. *Source: CoinMarketCap*

The Coincu research team suggests that quantum computing progress could accelerate regulatory measures and influence financial sectors, leading to diversified investments. Historically, Bitcoin’s performance has been resilient, yet evolving technology may usher in regulatory intervention and market recalibrations.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.