Bitcoin public-key exposure rises as over 6 million BTC face potential cryptography risk
A growing share of Bitcoin's circulating supply sits in wallets with public keys already visible on-chain, increasing the amount potentially at risk if cryptographic defenses are weakened. The exposed total reaches more than 6 million BTC, or 31.2% of supply, a level that stands about 5 to 6 percentage points above the 2023 low.
Highlights
- Glassnode reports 222,000 BTC added to addresses with visible public keys since May, compared to total bitcoin supply growth of 64,000 BTC.
- Exchanges hold 1.79 million BTC behind exposed public keys, with Coinbase at 10% exposure and Binance at 83%, while Fidelity maintains just 2%.
- Researchers warn that advancements in quantum computing or AI could enable rapid attacks on wallet cryptography, threatening over 6 million BTC at risk.
Exposure growth and holder breakdown
As reported by CoinDesk, citing Glassnode, the amount of bitcoin held behind visible public keys has increased by 222,000 BTC since the firm's May report, while total bitcoin supply has grown by just 64,000 BTC over the same period.Glassnode co-founder Rafael Schultze-Kraft says exchanges account for a large part of that increase, with 1.79 million BTC held behind exposed public keys. Coinbase's exposed share stands at 10%, while Binance's reaches 83%. Fidelity, by contrast, holds about 375,000 BTC with only 2% exposed, underscoring wide differences in custody practices across major entities.
AI and quantum risks for wallet security
Visible public keys can result from address reuse or appear directly in some Bitcoin output types, including early pay-to-public-key outputs and Taproot. If a sufficiently capable quantum computer emerges, or if a major mathematical breakthrough occurs, an attacker could potentially derive the matching private keys from those public keys.That risk is also drawing attention from the wider digital asset sector as concerns expand beyond quantum computing alone. Ethereum researcher Justin Drake urges preparations for possible AI-driven attacks on wallet cryptography, warning that artificial intelligence could find shortcuts to breaking it "in months, not years."
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