As a seasoned crypto investor with over a decade of experience in the volatile world of digital assets, I can’t help but feel a mix of anticipation and apprehension about Bitcoin‘s next bull run. The warnings from analysts like Matrixport about potential threats from quantum computing advancements and shifting inflation dynamics have certainly piqued my interest.
As a researcher delving into the intricacies of Bitcoin, I’ve come across some compelling insights that suggest potential challenges for its upcoming bull run. Analysts have flagged two significant factors: the progression of quantum computing and evolving inflation dynamics. These warning signs could potentially influence the trajectory of Bitcoin’s price movement.
Singapore-based web3 firm Matrixport says there are still many risks that could disrupt Bitcoin’s (BTC) bull market in 2025.
On December 27th, a research note from the firm highlighted Google’s “Willow” quantum chip containing 105 qubits as rekindling debates about potential vulnerabilities to Bitcoin’s security. Although the technology is currently in its nascent stages, Matrixport warned that the theoretical risks merit consideration.
Expectations for inflation are increasing, in part because of potential tariffs during President Trump’s tenure. The report indicates that these tariffs had a negligible effect during his initial term, but it cautions that the Federal Reserve’s reaction to fiscal policies could influence monetary policy in the coming year.
If it appears more probable that President Trump will be elected or if his presidency is officially confirmed, the Federal Open Market Committee (FOMC) might take a more aggressive approach in monetary policy. This shift could introduce fresh uncertainties for Bitcoin and the broader crypto market, as the Fed’s reaction to potential fiscal policies under Trump could significantly impact the direction of monetary policy, thus affecting these digital currencies.
Matrixport
As an analyst, I’ve observed that significant regulatory milestones, such as the SEC’s recent approval of spot Bitcoin exchange-traded funds, can serve as turning points for Bitcoin. However, with macroeconomic factors now dominating the discourse, these elements have moved to the forefront of our attention.
The report predicts that inflation won’t pose a significant problem next year, potentially enabling the Federal Reserve to keep its accommodating approach. Meanwhile, Matrixport suggests that Bitcoin’s destiny will depend on how effectively it tackles the upcoming obstacles.
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2024-12-27 12:43