Fed not cutting rates 'at all' by 2025 could send markets into hibernation

Economist Timothy Peterson warns that if the Fed delays rate cuts into 2025 , the market could crash, sending Bitcoin to $70,000 .

“The trigger could simply be that the Fed doesn’t cut rates this year,” he said .

The warning comes after Fed Chairman Jerome Powell said on March 7 that he was in no rush to adjust interest rates .

Fed's delay in rate cut could send markets into bear market
“ We need not rush and are well positioned to wait for more clarity ,” Powell  said  in a speech in New York on March 7.

Economist Timothy Peterson , author of “Metcalfe’s Law and the Value of Bitcoin ,” has predicted Bitcoin could fall to $57,000 in the “next bear market.”

Based on Nasdaq 's model , he estimates the index will fall 17% in seven months , dragging Bitcoin down 33% from $86,199 to $57,000 , according to CoinMarketCap data .

However, Peterson believes that Bitcoin may not fall too far, with an expected floor of around $70,000 , based on historical trends from 2022.

“Traders are always watching Bitcoin like vultures,” he explained. When the market expects the price to drop to $57,000 , many investors will buy early, preventing the price from falling further.

Bitcoin's 2022 Low Didn't Fall as Expected
Peterson compared this to 2022, when the market predicted a $12,000 bottom , but Bitcoin only fell to $16,000 , 25% higher than expected. If this ratio were applied, Bitcoin could hit $71,000 instead of $57,000 .

The last time Bitcoin was at $71,000 was on November 6 , right after Donald Trump 's victory , before rising to $100,000 on December 5 .

Arthur Hayes , co-founder of BitMEX , predicts Bitcoin will correct to $70,000 – $75,000 , before reaching $250,000 by the end of 2025.

Meanwhile, Blockware Solutions believes that the most pessimistic scenario would still bring Bitcoin's price to at least $150,000 , if the Fed reverses its decision to cut interest rates.