Author: Ciaran Lyons, CoinTelegraph; Compiler: Deng Tong, Golden Finance
Online economist Timothy Peterson warned that if the Federal Reserve delays cutting interest rates in 2025, it could lead to a broader market downturn and could drag Bitcoin back to $70,000.
"It needs a trigger. I think that trigger could be as simple as the Fed not cutting rates at all this year," Peterson said in an X post on March 8. Just one day before Peterson's comments, Federal Reserve Chairman Jerome Powell reiterated that he is in no rush to adjust interest rates.
"We don't need to rush, we can afford to wait for clearer information," Powell said in a speech in New York on March 7.
Peterson, author of the paper “Metcalfe’s Law as a Model of Bitcoin Value,” estimated how low the Nasdaq could fall to predict a potential bottom for Bitcoin in the “next bear market.”
Using Peterson’s Nasdaq price-low forward model, he estimates that once the bear market begins, the Nasdaq will fall 17% in about seven months before it finds a bottom.
He multiplied that amount by “1.9” times the decline in Bitcoin, estimating a 33% drop in Bitcoin from its current price of $86,199 at the time of publishing to $57,000, according to CoinMarketCap. However, he said that Bitcoin may not fall that low, and based on historical trends in 2022, the bottom price is expected to be close to the low $70,000 range.
“Traders and opportunists are circling Bitcoin like vultures,” he said, explaining that once the market expected Bitcoin to reach $57,000, “it wouldn’t get there because there were always some investors who stepped in because the price was ‘low enough.’”
“I remember in 2022, everyone was saying the bottom was $12,000. It only went to $16,000, 25% higher than expected,” he said, noting that a 25% increase from $57,000 is $71,000.
The last time Bitcoin traded near $71,000 was on November 6, when Donald Trump won the U.S. election, followed by a month-long rally that saw it reach $100,000 on December 5.
In January 2025, BitMEX co-founder Arthur Hayes made a similar price prediction.
Hayes said in a January 27 X post: "I expect BTC to pull back to $70,000-$75,000, a mini financial crisis, and money printing will resume, which will put us at $250,000 by the end of the year."
In December 2024, cryptocurrency mining company Blockware Solutions said that the "bear case" for Bitcoin in 2025 would be $150,000, assuming the Federal Reserve reverses its rate cuts.
The Uniswap Foundation recently moved $40.66 million in UNI tokens to multiple cryptocurrency exchanges, including OKX and Kraken. The transfers aim to diversify the foundation's assets and boost liquidity on established platforms.
YouQuanIn an act to liberate the tech sector, the Bukele administration has introduced tech-friendly policies designed to bolster the nation's economy, including the elimination of taxes on technological innovations.
DavinThe Monetary Authority of Singapore (MAS) recently held its seventh annual meeting of the Cyber Security Advisory Panel (CSAP) with cybersecurity experts from around the world. Topics covered included the growing challenges in mobile banking security due to the increase in online scams and the expanding use of artificial intelligence (AI) in the financial industry.
JoyIn an interview with Decrypt at the Esports and Gaming Business Summit, Karim Farghaly, Bandai Namco’s Senior Vice President of Corporate Development, shared insights into the company's perspective on blockchain's potential role in video games.
ClementProject Guardian aims to propel digital asset tokenisation pilots across a spectrum of financial sectors, including fixed income, foreign exchange, and asset management products.
CatherineSpecial Investigation Team conducted raids in 41 locations and arrested one key suspect for India's multi-million crypto scam.
Hui XinAlameda enjoyed a $65 billion line of credit, surpassing any other customer on the exchange, initially starting at a few million dollars.
AlexRenowned investor Stanley Druckenmiller, in a recent interview with hedge fund manager Paul Tudor Jones, commended Bitcoin's establishment of its own "brand" over the past decade and a half.
JasperDelve into the ripple effects caused by the untimely death of Yoozoo Networks CEO Lin Qi, touching on the upcoming court case, internal power shifts, and the company's uncertain financial future. It also explores new strategic directions taken by Yoozoo in an attempt to stabilise its position in the gaming industry.
YouQuanGrammy-nominated DJ Steve Aoki is embarking on another digital adventure. He is collaborating with STEPN to introduce an exclusive NFT sneaker collection based on Solana.
Jixu