View: Fed's rapid rate cut will drive Bitcoin and altcoins to rise significantly

BlockBeats News, on September 20, economist Timothy Peterson warned that participants in the cryptocurrency market may underestimate how radical the Federal Reserve will be in policy shifts. "The market underestimates the possibility of the Fed's rapid rate cuts in the coming months." "There has never been a gradual cut in history as the Fed currently envisions," Peterson explained, expecting "unexpected effects" that could catch the market off guard. "This will drive bitcoin and altcoins a significant increase, which I think will happen in the next 3 to 9 months." Peterson's comment came shortly after the Fed implemented its first rate cut this year on September 17, 2025, with the cut of 25 basis points. The rate cut has long been widely expected. The CME FedWatch tool showed a few hours before the announcement that the market priced the probability of a 25 basis point cut at 96%, and the probability of a 50 basis point cut at just 4%.