Over 6 Million Bitcoin Sit Behind Exposed Public Keys as AI Warnings Mount
Bitcoin holdings behind visible keys reach 6 million
More than 6 million bitcoin, or about 31.2% of the total coins in circulation, are stored in wallets with public keys already visible on the blockchain, according to new data from Glassnode. That figure is roughly 5 to 6 percentage points higher than the low point reached in 2023. The exposed supply has grown by 222,000 bitcoin since Glassnode first reported on the issue in May, while the total bitcoin supply increased by only 64,000 coins in the same period.
What the numbers show
- 6 million+ BTC sit behind public keys already visible on-chain
- 31.2% of circulating supply is affected
- Exchanges hold 1.79 million BTC behind visible public keys
- Binance has 83% exposed vs. 10% at Coinbase
- Revolut shows 99% exposure; Robinhood shows 100%
- Fidelity holds roughly 375,000 BTC with only 2% exposed
- Grayscale sits at 49% exposed
- No exposure detected in U.S., U.K., or El Salvador government holdings
Why public keys matter
Bitcoin wallets use a pair of keys for security. A public key is like an account number that can be shared openly. A private key is like a password that proves ownership. The public key is normally hidden until the owner sends a transaction. When a public key is visible on the blockchain before a transaction, it creates a theoretical vulnerability. A sufficiently powerful quantum computer, or an unexpected mathematical breakthrough, could potentially derive the private key from the exposed public key. Public keys can become visible through address reuse or appear in certain Bitcoin output types, including early pay-to-public-key outputs and Taproot transactions.
Justin Drake urges "bunker mode"
Ethereum researcher Justin Drake has warned the industry to prepare for potential AI-driven attacks on wallet cryptography. Drake argued that AI could uncover a shortcut to breaking wallet security in "months, not years" in a worst-case scenario, potentially before quantum computers even arrive.
What is still unclear
No practical attack on Bitcoin or Ethereum wallet keys has been demonstrated. The figures measure address usage patterns, not immediate security risk. It remains unknown whether AI will actually find a way to break current cryptography, or when — if ever — quantum computers will reach the required capability.
Why this matters
If a method were discovered to derive private keys from public keys, coins in affected wallets could potentially be stolen. With millions of bitcoin involved, the risk is significant even if the likelihood remains unproven. The data gives holders and exchanges a clearer picture of which wallets may need to be upgraded or moved to more secure formats.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.