Tom Lee, co-founder of Fundstrat and chairman of BitMine, predicts a “monstrous move” in Bitcoin (BTC) and Ethereum (ETH) during the next three months, fueled by projected US Federal Reserve rate cuts and greater market liquidity.
Speaking with CNBC, Lee predicted that both cryptocurrencies will have significant upward momentum in Q4 2025, when the Fed shifts from a tightening cycle to monetary easing.
“I believe they can make a significant move in the next three months… huge,” Lee said, underlining that liquidity and global central bank easing may force the crypto market higher.
Fed Rates Cuts Could Spark a Liquidity Boom
Lee said that the Federal Reserve’s first rate decrease of the year might signal a turning point for risk assets. According to him, this setting is similar to previous cycles, such as September 1998, when the Fed ended a protracted pause and began relaxing, which buoyed financial markets.
“The Fed may actually regain confidence by saying we’re back into an easing cycle,” Lee says. “Lowering interest rates will result in a real improvement in liquidity.”
Market estimates presently lean to a 25-basis-point rate drop, with a slimmer probability of a greater 50-basis-point decrease. If confirmed, Lee thinks the action would reinvigorate optimistic sentiment for digital assets.
Ethereum’s “1971 Wall Street” Moment
When asked about the risk profile of Bitcoin and Ethereum, Lee said that both assets are still vulnerable to liquidity and monetary policy swings. However, he saw Ethereum’s developing relationship to AI and blockchain integration as a long-term driver.
“Ethereum trades similarly to Wall Street in 1971 when the dollar left the gold standard, sparking massive innovation,” Lee told me. “Ethereum is simply a growth protocol.”
He proposed that Ethereum’s growth, together with the advent of AI-powered token economies and blockchain acceptance by big financial institutions, may spark a new supercycle.
BitMine Expands Ethereum Holdings
Lee also stated that BitMine, for which he serves as chairman, has been progressively collecting Ethereum. The corporation has declared $10.77 billion in cash and cryptocurrency holdings, including 2.15 million ETH, or around 1.8% of Ethereum’s entire supply.
“The convergence of Wall Street moving onto the blockchain and AI creating a token economy is forming a supercycle for Ethereum,” according to Lee.
What It Means To Investors
Lee’s projection is consistent with rising expectations that Q4 2025 would see the start of a new crypto bull run. With reducing inflation, a possible Fed rate reduction, and increased institutional use, Bitcoin and Ethereum may have significant momentum in 2026.
Nonetheless, economists warn that the market remains volatile and vulnerable to macroeconomic events, notably the Fed’s next policy decision.
Related: What happens if Ethereum’s $3.9 billion ETF surge keeps rolling in Q4
Source: Cointelegraph
This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.