Bitcoin’s potential rally in 2025 might run into some serious challenges, according to insights from Matrixport, a Singapore-based Web3 firm. Industry analysts are raising red flags regarding key factors that could affect the cryptocurrency’s performance.
In a recent research note, Matrixport pointed to Google’s “Willow” quantum chip, which boasts 105 qubits, potentially reigniting concerns about Bitcoin’s security vulnerabilities. Even though this technology is still in its infancy, the firm cautions that these theoretical risks demand our attention.
Inflation expectations are also on the rise, largely fueled by potential tariffs that could come with a renewed Trump administration. The report outlines that these tariffs had little impact during his first term. However, the Federal Reserve’s reaction to any changes in fiscal policy could create ripples in monetary policy for 2025. The report warns that if a Trump presidency seems even more likely, the Federal Open Market Committee (FOMC) might adopt a more hawkish approach. This added uncertainty could have profound implications for Bitcoin and the entire crypto landscape.
Matrixport points out that regulatory pressures often signal critical turning points for Bitcoin. Although the SEC’s approval of spot Bitcoin exchange-traded funds has alleviated some concerns, the focus has shifted to macroeconomic factors. The report suggests that “Inflation should not present a major issue next year,” implying that this could enable the Fed to keep a dovish policy stance. Consequently, Bitcoin’s future is now closely tied to how well it addresses these emerging challenges.
Despite the obstacles, Matrixport remains optimistic, projecting a 60% upside for Bitcoin, with a price target of $160,000 by 2025. This bullish outlook could encourage many to keep a close eye on how both technological advancements and economic policies unfold in the coming years. As Bitcoin contends with these risks, the community remains hopeful that resilience and innovation will ultimately prevail.
