Matrixport Outlines New Risks That Could Challenge Bitcoins Rally In 2025
Bitcoin’s next bull run could face headwinds from quantum computing advancements and shifting inflation dynamics, analysts warn.
Singapore-based web3 firm Matrixport says there are still many risks that could disrupt Bitcoin’s (BTC) bull market in 2025.
In a research note on Dec. 27, the firm pointed to Google’s “Willow” quantum chip with 105 qubits as reigniting discussions about potential threats to Bitcoin’s security. While the technology is still in its early innings, Matrixport noted that the “theoretical risks warrant attention.”
Inflation expectations are also rising, partly due to possible tariffs under Trump’s presidency. The report says these tariffs had “minimal impact” during his first term but warns that the Fed’s response to fiscal policies could affect monetary policy next year.
“[…] the FOMC could adopt a more hawkish stance if a Trump presidency seemed increasingly likely or was confirmed—both of which have now come to pass. This scenario introduces new uncertainties for Bitcoin and the wider crypto market, as the Fed’s response to potential fiscal policies under Trump could shape the trajectory of monetary policy.”
Matrixport
Matrixport highlighted that regulatory pressure often marks turning points for Bitcoin. The SEC’s approval of spot Bitcoin exchange-traded funds has eased concerns, but macroeconomic factors now take center stage.
“Inflation should not present a major issue next year,” the report states, adding that this could allow the Fed to maintain a dovish stance. Bitcoin’s future, according to Matrixport, now hinges on how it navigates these emerging challenges.
Kraken's Owner Buys A Bank: The Lines Are Blurring
Payward, the parent company of the crypto exchange Kraken, has agreed to buy a European bank. It would be the first digi... Read more
Crypto Vaults: Big Money, Thin Protection
Anyone who has spent time around financial markets will recognise the pattern. A new product appears, the yields look ir... Read more
Major Players In Crypto Hacked
Crypto's Billion-Dollar Blind Spot: Inside the Bitget Heist and the Revolut Extortion Plot Read more
Circle Wins Landmark US Banking Licence
Circle Internet Group has finally secured the regulatory prize it has been chasing for more than a year, with Read more