No Rate Cuts in 2025? Expert Predicts Market Drop if Fed Stalls Rate

No Rate Cuts in 2025? The Fed’s Interest Rate Strategy Could Spell Trouble!

According to Network economist Timothy Peterson, if the US Federal Reserve delays rate reduction in 2025, it might lead to a wider market decline and push Bitcoin back toward $70,000. Peterson made his remark the day after Jerome Powell, the chair of the Federal Reserve, reaffirmed that he was not in a rush to change interest rates. In order to forecast the probable bottom of Bitcoin in the upcoming bear market, Peterson, the author of the paper “Metcalfe’s Law as a Model for Bitcoin’s Value,” calculated how low the Nasdaq could drop.

What it needs is a trigger. I think that trigger may be as simple as the Fed not cutting rates at all this year,

Peterson

Nasdaq Drop Signals Bitcoin Correction: How Low Will BTC Go?

He predicted that once the bear market started, the Nasdaq would drop 17% over about seven months before reaching a bottom using Peterson’s Nasdaq lowest price forward model. When he multiplied that figure by “1.9,” he calculated that Bitcoin had actually declined by 33%. However, based on past trends from 2022, he said that Bitcoin probably won’t fall that much, with a bottom price closer to the low $70,000 level.

Traders and opportunists hover over Bitcoin like vultures. Once the market expects Bitcoin to hit $57,000, it won’t get there because there are always some investors who step in because the price is low enough. I remember in 2022 when everyone said the bottom would be $12k. It only went to $16k, 25% higher than expected.

Peterson

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