Matrixport's latest weekly report highlights multiple factors that could jeopardize the ongoing Bitcoin bull market. One significant concern stems from BlackRock, which stated that Bitcoin's decentralized protocol offers "no guarantee" that the 21 million supply cap will remain intact, raising questions about long-term scarcity.
Another potential threat involves advancements in quantum computing. Google's announcement of a quantum chip with 105 qubits has reignited debates about the implications for Bitcoin's encryption security. While quantum technology remains in its infancy and lacks the capability to undermine Bitcoin's defenses directly, the theoretical risks are drawing increasing attention.
Additionally, Federal Reserve members have adjusted their inflation expectations, influenced by political factors, including concerns over potential tariffs under a second Trump administration. However, historical data shows that similar tariffs had minimal inflationary impact, suggesting the Fed's expectations may not align with current economic conditions.
Matrixport also notes that Bitcoin bull markets often culminate when regulatory pressures peak. With significant regulatory issues, such as SEC rulings, largely resolved, the market may see more flexibility in 2025. However, these threats warrant close monitoring as they could impact Bitcoin's trajectory.
