Network economist Timothy Peterson warns that if the US Federal Reserve does not cut rates in 2025, a broader market downturn could ensue, possibly dragging Bitcoin back toward $70,000. Peterson noted that the market may need a trigger, which could simply be the Fed's inaction on rates this year. This comment follows Federal Reserve Chair Jerome Powell's statement emphasizing a cautious approach to rate adjustments. Using a model to predict Bitcoin's potential bottom in a bear market, Peterson anticipates a decline reaching around $57,000, applying a multiplier to the Nasdaq's anticipated decline. He expressed skepticism that Bitcoin would drop to that level, citing historical trends. Peterson recalled how in 2022, Bitcoin's anticipated low exceeded expectations, suggesting that once Bitcoin nears $57,000, it would attract buyers. Similar sentiments were echoed by BitMEX co-founder Arthur Hayes, who predicted a short-term dip followed by significant Bitcoin price growth by year-end.

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