Viewpoint: The Fed's rapid interest rate cuts will significantly drive up Bitcoin and altcoins.

On September 20, economist Timothy Peterson warned that participants in the Crypto Assets market may underestimate how aggressive the Fed will be in its policy shift, stating, "The market is underestimating the possibility of the Fed rapidly lowering interest rates in the coming months." "Historically, there has never been a situation where the Fed has envisioned a gradual rate cut like this," Peterson explained, predicting that there would be "unexpected effects" that could catch the market off guard. "This will significantly drive the rise of Bitcoin and alts; I think this will happen in the next 3 to 9 months." Peterson's comments came shortly after the Fed implemented its first rate cut of the year on September 17, 2025, with a reduction of 25 basis points. This rate cut had long been anticipated, with the CME FedWatch tool indicating a 96% probability for a 25 basis point cut and only a 4% probability for a 50 basis point cut just hours before the announcement.