20.09.2025 17:52

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**Crypto Market Poised for a Surge, Warns Economist: Fed Policy Shift Misunderstood**

Based on an analysis gathered from various internet sources, a prominent economist suggests that those participating in the cryptocurrency market may be failing to fully account for the Federal Reserve's impending shift in monetary policy. According to the expert, there's a significant underestimation of the pace at which the Fed will lower interest rates in the near future.

"Markets are not accurately pricing in the likelihood of swift rate reductions by the Federal Reserve in the upcoming months," stated economist Timothy Peterson in a recent interview. Elaborating on his perspective, Peterson observed that the gradual reduction in rates currently projected by the Fed is unprecedented, potentially setting the stage for a "surprise effect." He anticipates that this unexpected shift will significantly propel the prices of both Bitcoin and alternative cryptocurrencies, potentially within the next three to nine months.

Peterson's remarks followed closely on the heels of the Fed's initial rate cut of 25 basis points, which took effect on September 17th, 2025. This rate reduction was widely anticipated, reflected in the CME FedWatch Tool's prediction of a 96% probability for a quarter-point cut, along with a mere 4% chance of a larger, 50-point reduction in the hours preceding the announcement.

Ahead of the Fed's announcement, Bitcoin (BTC) momentarily reached $117,000, subsequently experiencing a retraction to levels consistent with previous days. At the time of this report, Bitcoin was trading at $115,570, as per CoinMarketCap data. Over the preceding 30 days, Bitcoin has appreciated by 1.03%. The CME data further suggests that market participants are largely factoring in another 25 basis point rate cut at the October 29th meeting, registering a 91.9% probability, with an 8.1% likelihood of rates remaining constant.

Moreover, statements from the Federal Reserve officials indicate the expectation of two additional quarter-point rate cuts this year. In contrast, Federal Reserve Chair Jerome Powell cautioned that the institution is "not on a pre-set path." The September rate cut elicited a range of responses from financial institutions, with some anticipating a more assertive move.