Opinion: Fed's Emergency Rate Cut Will Significantly Boost Bitcoin and Altcoins

BlockBeats News, September 20th, Economist Timothy Peterson warned that participants in the cryptocurrency market may be underestimating how aggressive the Federal Reserve may be in its policy shift, "The market underestimates the Fed's potential rapid rate cuts in the coming months." "There has never been a situation where the Fed has gradually cut rates as much as they are currently envisioning," Peterson explained, anticipating a "surprise effect" that could catch the market off guard.

"This will significantly boost the price of Bitcoin and altcoins, and I believe this will happen within the next 3 to 9 months." Peterson's comments came shortly after the Fed's first rate cut of the year on September 17, 2025, with a 25 basis point cut. The rate cut had been widely anticipated, with the CME FedWatch tool indicating a 96% probability of a 25 basis point cut and only a 4% probability of a 50 basis point cut in the hours leading up to the announcement.