Schwab Analyst Warns Quantum Computing Is Bitcoin’s ‘Number One Threat’

Bitcoin’s price is holding near $90,000, but the bigger story right now is what could be coming next.

Advertisement

In a recent Crypto Corner segment on Schwab Network, hosts Jenny Horne and Nate Peterson discussed why Bitcoin is underperforming despite supportive macro conditions, while also highlighting a long-term threat that could impact the entire crypto industry.

Bitcoin has been trading between $88,000 and $90,000, even as gold and silver continue to move higher. Historically, Bitcoin has followed gold with a 3-6 month delay, but that correlation has yet to show up this time.

Peterson noted that Bitcoin’s earlier rally toward $98,000 was driven by optimism around the Clarity Act, but momentum stalled once progress slowed.

Don’t Panic Over the Death Cross

A recent “death cross”, when the 50-day moving average falls below the 200-day, has raised concerns among traders. However, Peterson says not to read too much into it.

“By the time this indicator shows up, it’s too lagging… by the time you actually get a signal on there, I don’t put a lot of credence into it,” he said.

Instead, attention has shifted to key price levels. Bitcoin’s first major support sits near $85,000, with $80,000 considered critical. On the upside, analysts are watching $95,000, which would need to break with strong volume and retail participation to confirm a bullish move.

A Four-Year Cycle With New Variables

Bitcoin is currently in the fourth year of its traditional four-year cycle, a period that has historically been bearish. Still, Peterson pointed out that only four full cycles exist, making conclusions less certain. Increased institutional involvement could also be changing how Bitcoin behaves.

Ethereum, which typically moves 2-3% for every 1% change in Bitcoin, is holding support near $2,800, with resistance around $3,400.

A Big Threat to Bitcoin

Beyond price action, the discussion turned to quantum computing. The Ethereum Foundation has accelerated work on quantum-resistant cryptography, while AWS has announced quantum readiness. BlackRock has cited quantum risk in its Bitcoin ETF filings, and Coinbase recently formed a strategic quantum board.

The core concern is that quantum machines could eventually break current encryption and access private wallets. As Peterson put it, “This is probably the number one threat I would guess to Bitcoin and crypto in general.”

Vitalik Buterin has previously estimated a 20% chance that quantum computing could break crypto encryption before 2030 – a timeline now being questioned as development speeds up.

For crypto investors, the takeaway is clear: price volatility isn’t the only risk worth watching anymore.