Network economist Timothy Peterson has warned that if the US Federal Reserve has stopped rate cuts by 2025, it could cause a broader market collapse, which potentially drag Bitcoin back to $ 70,000.
“What it needs is a trigger. I think the trigger can be as simple as the Fed rates not cutting all these people,” Peterson Says In a post of March 8 x. Peterson’s comment came just one day after federal reserve chair Jerome Powell again that he was not in a hurry to adjust interest rates.
The Fed Rate Cut Delay may have spark market market
“We don’t have to rush and properly positioned to wait for more clarity,” Powell Says In a speech in New York on March 7.
Source: Timothy Peterson
Peterson, who has set the paper “Law of Metcalfe as a model for the value of Bitcoin,” estimates how low the NASDAQ is to predict Bitcoin’s (Btc) potential lower to “The Next Bear Market.”
Using the NASDAQ model of Peterson’s lowest price, Peterson estimated that the bottom would take seven months to form, with the Nasdaq decreasing 17% during the season.
Applying a “1.9” times multiplier in that amount for Bitcoin’s collapse, he estimated a 33% denial of Bitcoin, lowering it to $ 57,000 from the current publication price, $ 86,199, According to In CoinMarketCap data.
Source: Timothy Peterson
However, he said Bitcoin is unlikely to lower the distance, expecting a bottom closer to the low $ 70,000 range based on historical trends from 2022.
“Traders and opportunists are walking to Bitcoin like vultures,” he said, explaining that once the market expects to reach $ 57,000, “it can’t get there because there are always some investors walking because the price is’ low.”
2022 low of bitcoin did not go down as expected
“I remember in 2022 when everyone said the bottom was $ 12K. It just went to $ 16K, 25% higher than expected,” he said before pointing out that the 25% increase from $ 57,000 was $ 71,000.
The last time Bitcoin exchanged for $ 71,000 price level was on November 6, After Donald Trump won the US electionBefore ranging for a month and reached $ 100,000 on December 5.
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In January 2025, Bitmex co-founder Arthur Hayes shouted a similar price prediction.
“I’m calling for a $ 70k to $ 75k correction at BTC a mini financial crisis, and a continuation of money printing that will send us $ 250k by the end of the year,” Hayes Says In a Jan post 27 x.
In December 2024, Crypto Mining Firm Blockware Solutions Bitcoin’s “Bear Case” said for 2025 was $ 150,000, thinking that the Federal Reserve was returning a course to interest rate cuts.
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