Here's Why I Just Raised My 2026 Price Target for Bitcoin to $150,000

In early December, I set a fairly conservative 2026 price target of $130,000 for Bitcoin (CRYPTO: BTC). Then, this month, I upped that target to $150,000 or higher before year-end.

The earlier figure substantially underweighted the impact of a value-generating process that I expect to accelerate significantly in 2026, because if it doesn't, Bitcoin might experience one of its very few existential risks. Here's how and why my thinking evolved.

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Fixing this risk is a top priority

As a decentralized cryptocurrency with no issuer and no one governing body or entity with majority ownership, Bitcoin is remarkable because it's still being actively developed and advocated for by a dedicated group of individuals who work together autonomously. The coin's developer community works each day to fix issues, discuss potential improvements, and avoid making hasty changes that might compromise the value of the asset or the functionality of its blockchain.

On a technical basis, Bitcoin relies on digital signatures and cryptography to prove that only the owner of a given private key can spend the coins in the wallet that the key controls. That cryptography relies on absurdly complicated math problems that are very difficult to solve, even using powerful computers.

However, that last statement needs an asterisk at the end, as its cryptography is only unapproachably difficult to crack using the classical computers that exist today. A sufficiently powerful quantum computer could, in principle, break Bitcoin's encryption, and enable the theft of coins. And if the blockchain is proven to be under quantum attack before any mitigations are in place, the value of everyone's coins will decline very quickly.

The important caveat is that no one has demonstrated a quantum computer capable of doing this to Bitcoin at scale today, and pretty much all serious analyses of the matter still frame the threat as a threshold event that depends on major advances in quantum computing hardware. Those advances are still at least a handful of years out, even under the most pessimistic assumptions. But quantum computing is still extremely dangerous, as it's one of the few threats that could theoretically derail Bitcoin despite its decentralization.

Having a mitigation plan in hand will be a boon

From an investor's perspective, the risk posed by quantum computing thus forces the existence of a discount to the coin's valuation because it's one of the few scenarios that could plausibly undermine basic ownership of the asset. Addressing the risk by upgrading the chain would thus allow the coin's value to rise, erasing the discount. This is the basis for increasing my price target, as all of the other elements of the investment thesis that went into my past price target are also still in play.

Given the increasing urgency of the discussion across social media and the relevant technical forums, 2026 is almost certainly going to be a critical year for the Bitcoin community to hash out how a transition to a quantum-secure version of the asset will look. Importantly, I do not believe that the actual technical fixes needed will be performed this year, or even that they will be performed all at once. What I'm betting on is that the discussions about what to do are going to advance considerably, and start to form a consensus regarding what the best approach will be.

This is plausible, as quantum computer-resistant cryptographic algorithms are already known, and the U.S. government even has a set of guides regarding what security standards to use to ensure post-quantum cryptographic security. Once the developer community agrees on a handful of the related governance and implementation issues -- which, by the way, are not trivial -- it's likely that the market will price in the higher likelihood of a quantum-resistant Bitcoin down the line.

In other words, assuming that 2026 brings credible signals of consensus and even a smidgen of implementation progress, Bitcoin's price could rise because one of its nastiest risks starts looking containable instead of inexorably looming closer and provoking dread.

Of course, you probably still shouldn't take my $150,000 price target literally. A lot of macro factors will be in play this year, same as always, and they could easily rain on the parade -- or make it even better than anticipated.

Alex Carchidi has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.