Archive · 17 Jan 2026
Jefferies Reduces Bitcoin Allocation Over Quantum Threat
Jefferies, a big investment company, has decided to reduce the amount of Bitcoin in their pension funds.
They're worried that new, super-powerful computers called quantum computers could one day steal Bitcoin.
So, they're moving some of their money from Bitcoin to gold and gold-mining stocks.
They think Bitcoin might have already reached its highest price for now.
They also talked about how some old Bitcoin might be at risk because of these new computers.
But they don't think this will affect Bitcoin's price right away.
Jefferies also believes that Bitcoin is important because people are worried about the stability of financial and political institutions, not just because of enthusiasm for digital assets.
They see Bitcoin as a way to protect against extreme failures in these institutions.
Jefferies is removing 10% Bitcoin allocation from its US-dollar-based pension funds, reallocating 5% to gold and 5% to gold-mining stocks.
Bitcoin has risen by 325% since December 17, 2020, outperforming gold's 145% rise over the same period.
Quantum computing poses a potential long-term threat to Bitcoin's security by making it easier to derive private keys from public keys.
Vulnerable Bitcoin coins include Satoshi-era holdings (3-5.5% of total supply), lost coins (2-5 million BTC), and coins from address re-use.
Jefferies believes Bitcoin has peaked in the post-halving cycle at $126,251 last October, despite a recent 20.2% rally from November lows.
- Who
- Jefferies, a global investment bank
- What
- Reduced Bitcoin allocation in pension funds due to quantum computing threat and framed Bitcoin as an existential hedge
- When
- The change is being made this week
- Where
- The decision affects US-dollar-based pension funds
- Why
- Concerns about the long-term security of Bitcoin due to potential quantum computing advancements and a breakdown in institutional trust
Bitcoin as an Existential Hedge
Quantum Computing Threat to Bitcoin
Bitcoin's Role in Markets
Bitcoin as an Existential Hedge
Bitcoin is a response to distrust in fiat currencies and policy frameworks, serving as an existential hedge against institutional or policy failure.
Quantum Computing Threat to Bitcoin
Bitcoin's relevance does not equal permanence due to its volatility, regulatory risks, and technological vulnerabilities.
Quantum Computing Impact
Bitcoin as an Existential Hedge
Quantum computing is a potential long-term threat to Bitcoin's security by making it easier to derive private keys from public keys.
Quantum Computing Threat to Bitcoin
The technological progress that investors fear in traditional systems could ultimately destabilise Bitcoin itself.
- Bitcoin Allocation Change
- 10% removed, 5% to gold, 5% to gold-mining stocks
- Bitcoin Performance
- 325% rise since December 17, 2020
- Gold Performance
- 145% rise since December 17, 2020
- Quantum Computing Threat
- Potential to derive private keys from public keys in hours or days
- Vulnerable Bitcoin Coins
- Satoshi-era holdings (3-5.5% of total supply), lost coins (2-5 million BTC), and address re-use
- Existential Hedging
- Investors allocate capital for protection against extreme institutional or policy failure
- Global Debt Levels
- High public debt levels make sustained high real interest rates politically and economically difficult
