Fundstrat co-founder and BitMine president Tom Lee, known for his bold predictions about Bitcoin (BTC) and the cryptocurrency market, announced that he expects a major rise in Bitcoin and Ethereum.
Speaking to CNBC, Tom Lee said that he expects Bitcoin and Ethereum to see a major rise in the fourth quarter of this year, with the easing of monetary policy in the US and the Fed’s interest rate cuts.
“If the Fed cuts interest rates, Bitcoin and Ethereum could be the biggest beneficiaries.
At this point, I think BTC and ETH could make a huge move in the next three months.”
Lee likened the current situation to the period in September 1998 and 2024, when the Fed took a “prolonged pause” and then began cutting interest rates again in September.
“The Fed can restore confidence by saying we’re back in the easing cycle. And the liquidity that comes with the rate cut will provide a real improvement for BTC and ETH,” Lee said.
The FED is priced in with a 94% chance of cutting interest rates by 25 basis points on Wednesday, tomorrow, and a 50 basis point cut is priced in with a 4% chance of cutting interest rates by 50 basis points.
When Tom Lee was last asked whether BTC and ETH are still risky assets, he said that Bitcoin is particularly sensitive to monetary policy and liquidity, while Ethereum is liquidity sensitive.
“So I think Ethereum is trading like Wall Street in 1971, when the dollar was coming off the gold standard and there was a lot of innovation happening… Ethereum is essentially a growth protocol.”
*This is not investment advice.
