Is Bitcoin facing a quantum threat? An in-depth analysis of the BIP-360 proposal—will it trigger a revaluation of BTC price?

The security of Bitcoin is based on elliptic curve digital signature algorithms. In theory, sufficiently powerful quantum computers could reverse-engineer private keys from public keys, thereby stealing assets. Although this remains a theoretical risk at present, advances such as Google’s “Willow” chip have prompted the entire industry to seriously consider this “long-term concern.”

Core of BIP-360: This is not just patchwork, but an architectural overhaul

According to the latest information, the BIP-360 proposal has been officially added to the Bitcoin core codebase, marking the transition of quantum resistance from discussion to implementation.

1. A new output type: P2MR

The proposal introduces the Pay-to-Merkle-Root (P2MR) output type. Unlike traditional P2TR, P2MR commits directly to the “merkle root of the script tree,” no longer relying on public keys. This means that even if future quantum computers can crack public keys, they cannot directly attack assets locked by P2MR.

2. Removal of quantum-vulnerable points

BIP-360 removes the “key path spending” in Taproot upgrades, which is considered the most vulnerable point to quantum attacks. Future P2MR outputs can only be spent via “script path spending,” effectively cutting off the most attack-prone channel.

3. Recognizing new addresses: starting with bc1z

For users, the most immediate change is in address format. If implemented, Bitcoin addresses using P2MR will be based on Bech32m encoding, starting with bc1z, to distinguish them from traditional bc1 addresses and existing Taproot addresses (bc1p).

Defense boundaries and costs

BIP-360 is an “optional” upgrade, mainly targeting “long-term exposure attacks”—that is, addresses whose public keys are exposed on-chain for extended periods. To defend against more advanced “short-term exposure attacks,” future solutions will need to incorporate “post-quantum signatures.”

In terms of cost, P2MR’s “minimum witness size” will be approximately 37 witness elements larger than the key path in Taproot, and all transactions will need to be script-based, exposing more metadata on-chain.

Will Bitcoin’s price undergo a “drastic revaluation”? Data and logical reasoning

Technological upgrades often trigger market discussions about valuation reappraisal. Bullish and CoinDesk senior analyst James Van Straten commented that once consensus is reached, the market could see a sharp 50-100% revaluation within a few weeks.

Market data as of February 14 from Gate

Before discussing future implications, let’s look at the current market position. As of February 14, 2026, based on data from Gate and other major exchanges, Bitcoin’s price rebounded after a dip yesterday:

• Spot price: BTC/USDT at $69,270.39. Up 4.29% in 24 hours, with a high of $72,206.91 and a low of $65,092.11.
• Market cap: approximately $1.38 trillion, with a 24-hour trading volume of $40.046 billion.
• Market sentiment: Price is oscillating around $69,000, with bulls and bears fiercely contesting near $65,000.

Revaluation logic: from “risk discount” to “safety premium”

If BIP-360 gains community approval and is implemented via soft fork, Bitcoin’s valuation logic will undergo a fundamental shift:

1. Eliminating tail risks: Removing the biggest concern for long-term institutional whales could attract more conservative capital.
2. Strengthening the “digital gold” narrative: Upgrading the core protocol to address quantum threats will further solidify Bitcoin’s status as the ultimate store of value.
3. Potential black swan concerns: Markets worry about how early Bitcoin holdings from Satoshi and other early adopters will be handled. If these ancient addresses do not migrate to new quantum-safe addresses, it could create significant psychological pressure.

Conclusion

While the threat of quantum computing has not yet materialized, BIP-360’s inclusion marks Bitcoin’s shift from “passive concern” to “active prevention.” For investors, this represents both a major technical milestone and a litmus test for market consensus.

At Gate, we will continue to monitor the progress of BIP-360 and subtle shifts in market sentiment. Whether to hedge risks or seize opportunities, maintaining sharp awareness of core technological developments is key to long-term survival in the crypto market.