Fundstrat co-founder and BitMine president Tom Lee, identified for his daring predictions about Bitcoin (BTC) and the cryptocurrency market, introduced that he expects a significant rise in Bitcoin and Ethereum.
Chatting with CNBC, Tom Lee stated that he expects Bitcoin and Ethereum to see a significant rise within the fourth quarter of this yr, with the easing of financial coverage within the US and the Fed’s rate of interest cuts.
“If the Fed cuts rates of interest, Bitcoin and Ethereum could possibly be the largest beneficiaries.
At this level, I feel BTC and ETH might make an enormous transfer within the subsequent three months.”
Lee likened the present state of affairs to the interval in September 1998 and 2024, when the Fed took a “extended pause” after which started slicing rates of interest once more in September.
“The Fed can restore confidence by saying we’re again within the easing cycle. And the liquidity that comes with the speed reduce will present an actual enchancment for BTC and ETH,” Lee stated.
The FED is priced in with a 94% probability of slicing rates of interest by 25 foundation factors on Wednesday, tomorrow, and a 50 foundation level reduce is priced in with a 4% probability of slicing rates of interest by 50 foundation factors.
When Tom Lee was final requested whether or not BTC and ETH are nonetheless dangerous belongings, he stated that Bitcoin is especially delicate to financial coverage and liquidity, whereas Ethereum is liquidity delicate.
“So I feel Ethereum is buying and selling like Wall Road in 1971, when the greenback was coming off the gold normal and there was a variety of innovation occurring… Ethereum is basically a progress protocol.”
*This isn’t funding recommendation.
