Bitcoin’s security is built on the Elliptic Curve Digital Signature Algorithm (ECDSA). In theory, a sufficiently powerful quantum computer could reverse-engineer private keys from public keys, enabling asset theft. While this remains a theoretical risk for now, developments like Google’s "Willow" chip have prompted the industry to take this "distant threat" seriously.
BIP-360’s Core: Not Just a Patch, but an Architectural Overhaul
According to the latest updates, the BIP-360 proposal has been officially added to Bitcoin’s core codebase, marking a shift from discussion to implementation for quantum resistance.
1. A New Output Type: P2MR
The proposal introduces the Pay-to-Merkle-Root (P2MR) output type. Unlike the traditional P2TR, P2MR commits directly to the "Merkle root of the script tree," eliminating reliance on public keys altogether. This means that even if quantum computers eventually crack public keys, they cannot directly compromise assets locked with P2MR.
2. Removing Quantum Vulnerabilities
BIP-360 eliminates the "key path spend" mechanism from the Taproot upgrade, which was considered the weakest link against quantum threats. Going forward, P2MR outputs can only be spent via "script path," effectively closing the most vulnerable attack vector.
3. Identifying New Addresses: Starting with bc1z
For users, the most noticeable change is the address format. If implemented, Bitcoin addresses using P2MR will be encoded with Bech32m and start with bc1z, distinguishing them from traditional "bc1" and current Taproot "bc1p" addresses.
Defense Boundaries and Trade-offs
BIP-360 is an "optional" upgrade, primarily targeting "long-term exposure attacks"—addresses whose public keys remain exposed on-chain for extended periods. To defend against more advanced "short-term exposure attacks," future upgrades will need to introduce "post-quantum signatures."
In terms of trade-offs, P2MR’s "minimum witness size" will be about 37 bytes larger than Taproot’s key path, and all transactions must use the script path, exposing more metadata on-chain.
Will Bitcoin Face a "Dramatic Repricing"? Data and Logical Analysis
Technical upgrades often spark discussions about market revaluation. Bullish, and CoinDesk senior analyst James Van Straten, commented that once consensus is reached, the market could see a dramatic 50–100% price revaluation within weeks.
Gate Market Data as of February 14
Before discussing the future, let’s review the current market position. As of February 14, 2026, aggregated data from Gate and other major exchanges shows that the Bitcoin price rebounded after dipping yesterday:
- Spot Price: BTC/USDT is currently trading at $69,270.39, up 4.29% in 24 hours, reaching a high of $72,206.91 and a low of $65,092.11.
- Market Cap: The current market cap is approximately $1.38 trillion, with a 24-hour trading volume of $40.046 billion.
- Market Sentiment: Prices are fluctuating around $69,000, with intense long-short battles near $65,000.
Repricing Logic: From "Risk Discount" to "Security Premium"
If BIP-360 gains community approval and is implemented via soft fork, Bitcoin’s valuation logic will fundamentally shift:
- Eliminating Tail Risks: It addresses the biggest concern of institutional "whales" holding long-term, potentially attracting more conservative capital.
- Strengthening the Digital Gold Narrative: By upgrading the core protocol to address quantum threats, Bitcoin’s position as the ultimate store of value is further reinforced.
- Potential Black Swan Concerns: The market is worried about how "Satoshi’s" large early Bitcoin holdings will be handled. If these ancient addresses don’t migrate to new quantum-safe addresses, it could create significant psychological pressure.
Conclusion
The threat of quantum computing hasn’t materialized yet, but BIP-360’s arrival signals Bitcoin’s shift from "passive worry" to "proactive prevention." For investors, this is not only a major technical tailwind but also a litmus test for market consensus.
At Gate, we’ll continue to monitor BIP-360’s progress and subtle shifts in market sentiment. Whether you’re seeking to mitigate risks or seize opportunities, staying alert to core technical developments is essential for long-term survival in the crypto market.
