The economist of the Timothy Peterson network warns that if the United States federal reserve is held on rate reductions in 2025, this can lead to a wider slowdown in the market, potentially bringing Bitcoin to $ 70,000.
“What he needs is a trigger. I think the trigger can be as simple as the Fed does not reduce rates this year, “Peterson said in a post on March 8. Peterson’s comment comes just a day after the president of the federal reserve Jerome Powell reiterated that he was not in a hurry to adjust interest rates.
Fed rates decrease period can trigger the bear market
“We don’t need to be in a hurry and are well placed to wait for greater clarity,” Powell said in a speech in New York on March 7.
Source: Timothy Peterson
Peterson, who is the author of the article “The law of Metcalfe as a Bitcoin value model”, estimated how the Nasdaq could drop to predict the low potential of Bitcoin (BTC) in “The next bear market”.
Using the lowest price model of the Nasdaq in Peterson, Peterson estimated that the bottom would take about seven months to train, the Nasdaq lowering 17% over the period.
By applying a multiplier of “1.9” to this amount for the drop in Bitcoin, he estimated a drop of 33% of Bitcoin, which reduces him to $ 57,000 from his current publication price, $ 86,199, according to CoinmarketCap data.
Source: Timothy Peterson
However, he said Bitcoin will probably not drop so far, expecting a background closer to the low range of $ 70,000 based on historical trends of 2022.
“Traders and opportunists hover on Bitcoin like vultures,” he said, explaining that the market is expecting Bitcoin to reach $ 57,000, “this will not succeed because there are always investors who intervene because the price is” low enough “.
The bottom of the bitcoin in 2022 did not drop as expected
“I remember in 2022 when everyone said that the substance would cost $ 12,000. This only made $ 16,000, 25% higher than expected, “he said before pointing out that the 25% increase compared to $ 57,000 is $ 71,000.
The last time Bitcoin exchanged at the price level of $ 71,000 was on November 6, after Donald Trump won the US elections, before rallying for a month and reaching $ 100,000 by December 5.
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In January 2025, the co-founder of Bitmex, Arthur Hayes, echoes a similar price prediction.
“I call a correction of $ 70,000 to $ 75,000 in BTC a financial mini-crise and a recovery of money printing which will send us to $ 250,000 by the end of the year,” said Hayes in a position of January 27 x.
In December 2024, the Crypto Blockware Solutions Mines Company said that the “Bear case” of Bitcoin for 2025 would be $ 150,000, assuming that the price of the opposite federal reserve on interest rate reductions.
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