Bitcoin faces quantum security risks and massive exchange outflows

Recent data highlights two divergent trends in the Bitcoin market: growing long-term security concerns and a significant shift in investor behavior.

An analysis by Glassnode reveals that approximately 6.26 million BTC, or 31.2 percent of the total supply, are held in addresses with exposed public keys. This exposure increases the potential vulnerability of these assets to future quantum computing attacks. The risk is driven by two main factors: the reuse of addresses, which reveals public keys after a transaction, and technical structures like older P2PK addresses or Taproot outputs where keys are directly visible on the blockchain. This figure has risen from 24.8 percent in early 2021.

Simultaneously, on-chain data from Santiment shows a massive movement of capital toward long-term storage. On a single Monday, roughly 24,073 BTC, valued at approximately $2.02 billion, flowed out of centralized exchanges, marking the largest single-day outflow in seven months. This reduction in exchange reserves, combined with a recovery in Bitcoin ETF inflows from providers like iShares and Fidelity, suggests that investors are increasingly moving toward a long-term holding strategy rather than preparing for immediate sales.