TechFlow News, according to Cointelegraph, network economist Timothy Peterson has warned that if the U.S. Federal Reserve does not implement any interest rate cuts in 2025, it could trigger a broader market downturn and pull bitcoin's price back toward the $70,000 level. In a post, Peterson said: "The market needs a catalyst, and I think that catalyst might be the Fed not cutting rates at all this year."
Based on Peterson’s Nasdaq Minimum Price Forward model, once a bear market begins, the Nasdaq would fall by approximately 17% over about seven months, which corresponds to a potential 33% decline in bitcoin—to $57,000. However, Peterson believes the actual drop in bitcoin may not be that severe, expecting the bottom price to be closer to the lower end of $70,000.
He explained: "Traders and speculators are circling bitcoin like vultures. Once the market expects bitcoin to reach $57,000, it likely won't get there because investors will always step in when prices are perceived as 'low enough.'" He recalled that in 2022, many predicted a bitcoin bottom at $12,000, but the actual low only reached $16,000—25% higher than expected.
