Analyst: If the Federal Reserve does not cut interest rates at all in 2025, it may trigger a bear market, causing Bitcoin to fall back to $70,000

According to a ChainCatcher message reported by Cointelegraph, internet economist Timothy Peterson warns that if the US Federal Reserve does not implement any interest rate cuts in 2025, it could trigger a broader market decline and pull Bitcoin prices back to around $70,000. Peterson stated in his post: "The market needs a trigger, and I think this factor might be the Fed's complete lack of interest rate cuts this year."

Based on Peterson's Nasdaq minimum price forecast model, once the bear market begins, Nasdaq will fall about 17% within approximately seven months. This corresponds to a potential drop of 33% for Bitcoin down to $57,000. However, Peterson believes that the actual decline in Bitcoin may not be so large and expects the bottom price will be closer to $70,000.

He explained: "Traders and speculators are hovering over Bitcoin like vultures. Once the market anticipates that Bitcoin will fall to $57,000 it won't reach that price because there are always investors who intervene when prices are 'low enough'." He recalled that many people predicted in 2022 that the bottom for bitcoin would be at $12,000 but it only fell as low as $16,000 which is 25% higher than expected.