In the cryptocurrency markets, attention has turned to a proposed technical update aimed at increasing the Bitcoin network’s resilience against quantum computers. Some analysts in the sector argue that an agreement on this could trigger a sharp revaluation of prices.
James Van Straten, a senior analyst at the cryptocurrency exchange Bullish, commented on the Bitcoin Improvement Proposal 360 (BIP-360). Straten stated that after the Bitcoin price dropped to the $60,000 level, the industry began to take the potential threats posed by quantum computing more seriously. He described this increased awareness as a “welcome development.”
According to Straten, if a network-wide consensus is reached on a quantum-resistant solution, markets could see a dramatic price revaluation of between 50% and 100% within weeks. The analyst stated that reducing technical risks could boost investor confidence, which in turn could pave the way for a strong upward price movement.
However, Straten pointed out that this process also carries potential risks. In particular, he said that uncertainties regarding the fate of Bitcoins believed to belong to Satoshi Nakamoto and which have been inactive for a long time could create volatility in the market. The potential activity of such old wallets could be decisive in investor psychology.
As previously reported, Bitcoin Improvement Proposal 360 (BIP-360) has been added to the official codebase. The proposal aims to introduce a new output type called Pay-to-Merkle-Root (P2MR). With this planned soft fork, the goal is to strengthen the Bitcoin network’s defenses against potential cryptographic threats from quantum computers in the future.
*This is not investment advice.
