Investment strategist Tom Lee, co-founder of Fundstrat and chairman of BitMine, has expressed a bullish outlook for Bitcoin (BTC) and Ether (ETH) as the fourth quarter approaches. In a recent appearance on CNBC, Lee attributed potential price surges for these cryptocurrencies to the easing of monetary policy in the United States.
Lee highlighted the sensitivity of these digital assets to monetary liquidity and the global trend of central banks easing their monetary policies. He stated, “I think they could make a monster move in the next three months… huge,” stressing that the upcoming quarter could be pivotal for both Bitcoin and Ether.
Central to Lee’s optimism is the anticipated reduction of interest rates by the Federal Reserve. With a projected cut of 25 basis points imminent, some market analysts speculate on the possibility of a more substantial 50 basis point decrease, although the odds of such a move stand at a mere 4%. Lee sees these adjustments as revitalizing market confidence, reinforcing his view that liquidity improvements will significantly enhance crypto prices.
Lee drew parallels between the current financial landscape and historical precedents. He referenced the period of September 1998 and 2024, when the Federal Reserve took an “extended pause” and implemented rate cuts, leading to favorable market conditions. According to Lee, “The Fed can actually reinject confidence by saying we’re back into an easing cycle,” indicating the profound impact these fiscal policies could have on investor sentiment.
When discussing Bitcoin and Ethereum, Lee expressed that both assets continue to represent ‘risk-on’ investments, with Bitcoin exhibiting heightened sensitivity to changes in monetary policy. Lee elaborated on Ether’s unique position by stating, “But it’s also part of this AI moving onto the blockchain and Wall Street moving onto the blockchain.” He likened Ethereum to the transformative period of 1971 when the dollar was untethered from gold, suggesting that it is evolving into a growth catalyst within the crypto sphere.
On the investment front, BitMine has ramped up its acquisition strategy for Ether. The company’s latest report disclosed holdings of $10.77 billion in cash and cryptocurrencies, which includes a substantial stake in Ether amounting to 2.15 million ETH. This translates to roughly $9.7 billion in Ether, representing almost 1.8% of the total supply. Lee reinforced his strategy by stating, “The convergence of both Wall Street moving onto the blockchain and AI and agentic-AI creating a token economy is creating a supercycle for Ethereum.”
As of the most recent data, Ethereum’s market price hovered just above $4,500, reflecting a daily drop of 2.7%, yet showcasing an impressive increase of nearly 5% from the same period last week. This ongoing volatility accentuates the dynamic nature of the market, particularly as the fourth quarter unfolds.
Looking ahead, traders and investors are keenly anticipating how macroeconomic shifts and regulatory developments will shape the trajectory of Bitcoin and Ether. Given Lee’s insights and the promising monetary landscape, the upcoming months could indeed hold significant potential for growth in the cryptocurrency sector.
