Matrixport, a Singapore-based Web3 firm, warns that several risks could disrupt Bitcoin’s (BTC) bullish momentum in 2025. These risks include concerns over Bitcoin’s 21 million supply cap raised by BlackRock, advancements in quantum computing, and changes in inflation trends. While Matrixport emphasizes that these factors need to be closely monitored, it believes they are unlikely to affect Bitcoin in the short term.
In a research note published on December 27, the firm highlighted the Google Willow quantum chip, which boasts 105 qubits, as a potential security threat to Bitcoin. The chip can complete a standard benchmark calculation in five minutes, a task that would take a traditional supercomputer 10,000 years. Matrixport views this as a significant milestone, as previous attempts to increase qubits in quantum computers resulted in higher error rates.
However, the report noted that it is too early to determine whether quantum computing will pose a significant threat to blockchain-based systems like Bitcoin because the technology is still in its early innings. Regardless, it cautioned that the rapid pace of technological progress in this space warrants investors’ attention.
It also highlighted that regulatory pressure often marks turning points for Bitcoin. While most of the uncertainties surrounding the SEC’s approval of a spot Bitcoin exchange-traded fund have been resolved, other factors could affect BTC’s performance in the upcoming quarter.
These include macroeconomic trends, institutional investment, and growing adoption. Institutional investment in Bitcoin continues to grow as ETF products and other investment vehicles related to the digital currency become available. The firm said this trend, combined with low interest rates and inflation expectations shifting due to President Trump’s proposed tariffs, could provide a strong impetus for capital flows to BTC.
The firm also highlighted that Ethereum gas fees have recently shown a modest rebound, a trend expected to continue in the coming months. The company believes that this increase in demand will allow for further price gains and that if these conditions persist, Bitcoin could see a Q4 rally of up to 40%.
