# Fed Policy Shift Poised to Trigger Substantial Crypto Asset Surge ▴ News

**Published:** 2025-09-20
**Categories:** News

---

The digital asset ecosystem is fundamentally interconnected with global monetary policy, which dictates the base cost of capital. Current market architecture appears to be pricing in a linear, gradual reduction in interest rates by the Federal Reserve. Economist Timothy Peterson identifies a systemic inefficiency in this model, positing that historical precedent points toward more rapid, aggressive policy shifts.

Such a development would trigger a system-wide recalibration of asset valuations. The consequence for high-beta, risk-on asset classes like cryptocurrencies is a magnified, nonlinear repricing event, as the foundational assumptions governing capital allocation are abruptly altered.

Market participants are operating on a consensus model of gradual Fed action, creating a structural vulnerability and potential arbitrage opportunity should a more historically consistent, aggressive rate-cutting cycle materialize.

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**Primary Catalyst** ▴ Economist Timothy Peterson’s forecast that markets are “underpricing the likelihood of rapid rate cuts.”

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**Market Expectation** ▴ A 91.9% probability of another 25 basis point rate cut is priced in for the October 29 meeting.

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**Effective Timeline** ▴ The predicted repricing event is expected to occur within the next 3 to 9 months.

Signal Acquired from ▴ <a href="https://cointelegraph.com/news/bitcoin-altcoins-price-surge-federal-reserve-united-states-economist?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" target="_blank" rel="nofollow">Cointelegraph</a>

**Tags:** [Capital Valuation](https://options.greeks.live/area/capital-valuation/), [Monetary Policy](https://options.greeks.live/area/monetary-policy/), [Surprise Effect](https://options.greeks.live/area/surprise-effect/), [Basis Points](https://options.greeks.live/area/basis-points/), [Risk-On Assets](https://options.greeks.live/area/risk-on-assets/), [Rate Cuts](https://options.greeks.live/area/rate-cuts/)	

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---

**Original URL:** https://options.greeks.live/news/fed-policy-shift-poised-to-trigger-substantial-crypto-asset-surge/
