Jefferies abandons Bitcoin due to quantum computing threat

In his latest Greed & Fear note on Friday, Jefferies’ Christopher Wood raised new concerns, saying the emergence of quantum computing could one day put the entire Bitcoin system at risk, prompting Wood to abandon his BTC allocation and move his funds into gold and silver.

Wood does not believe the quantum problem will significantly affect BTC prices in the near term.

However, he believes that the concept of a “store of value” clearly rests on less solid foundations from a long-term portfolio perspective.

Bloomberg reports that Christopher Wood, global head of equity strategy at Jefferies, has removed a 10% Bitcoin allocation from his model portfolio, citing concerns that advances in quantum computing could compromise Bitcoin’s long-term security and role as a store of value…

-Wu Blockchain (@WuBlockchain) January 16, 2026

Bitcoin’s security relies on cryptographic algorithms, which are protected against conventional computing power. However, quantum computers could easily reverse engineer private keys from public keys, thereby threatening the integrity of the system.

The potential for quantum computers to compromise the security of Bitcoin has intensified in recent months. Experts estimate that a working quantum computer could arrive in just a few years.

Jefferies abandons Bitcoin allocation for safe-haven assets

Wood, the global equity strategist at Jefferies, removed a 10% Bitcoin allocation from his model portfolio, Bloomberg reported. Wood cited the risk that quantum computing could compromise the cryptographic security of BTC as a reason to focus on traditional safe-haven assets.

Wood reallocates the Bitcoin share equally to gold and mining stocks. This represents a complete reversal of its previous bullish stance on Bitcoin.

Buy gold, sell Bitcoin: Jefferies’ Chris Wood explains his big 2026 bet pic.twitter.com/0VjJUE4dpH

– Alok Jain ⚡ (@WeekendInvestng) January 16, 2026

Reallocation is based on long-term security concerns rather than short-term performance measures.

Wood’s decision was interpreted as a signal to other institutional investors. Bitcoin has been a major element of long-term investment strategies for several years.

This shift suggests growing skepticism about its viability as a store of value.

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