Bitcoin and Ether are expected to see a significant rally in the fourth quarter of this year, driven by easing monetary policy in the U.S., according to Tom Lee, co-founder of Fundstrat and chairman of BitMine.
Speaking on CNBC on Monday, Lee said that increased monetary liquidity, global central bank easing, and favorable seasonal trends will be key factors pushing Bitcoin and Ether prices higher.
“I think they could make a monster move in the next three months … huge.”
Lee noted that Bitcoin and Ether could become some of the “stand-out trades” for the remainder of the year, partly fueled by the Federal Reserve’s anticipated rate cuts.
He drew a comparison to past cycles, specifically September 1998 and 2024, when the Fed was in an “extended pause” before initiating rate cuts. “The Fed can actually reinject confidence by signaling a return to an easing cycle,” Lee said, emphasizing that a rate cut would mark a “real improvement in liquidity.”
The U.S. central bank is widely expected to lower interest rates by 25 basis points on Wednesday, although futures markets assign only a 4% probability to a larger 50 basis point cut.
Ethereum Resembles 1971 Wall Street, Says Tom Lee
When asked whether Bitcoin and Ether remain risk-on assets, Tom Lee explained that Bitcoin is especially sensitive to monetary policy and overall liquidity conditions. Ether, he added, is also influenced by liquidity but has broader dynamics at play.
“It’s also tied to the broader shift—AI moving onto the blockchain, Wall Street moving onto the blockchain. It’s like a stablecoin-ChatGPT moment for crypto,” Lee said, drawing parallels between Ethereum’s current evolution and the transformative period of Wall Street in 1971.
“So Ethereum, I think, almost trades like 1971 Wall Street when the dollar went off the gold standard and there was a lot of innovation … Ethereum essentially is a growth protocol.”
BitMine Ramps Up Ether Accumulation as Lee Predicts Ethereum Supercycle
Tom Lee concluded by explaining that this outlook is why BitMine is aggressively acquiring Ether.
In its latest update on Monday, BitMine reported $10.77 billion in cash and crypto holdings, including 2.15 million ETH. That translates to approximately $9.7 billion in Ether, or nearly 1.8% of the total ETH supply.
“The convergence of Wall Street moving onto the blockchain and the rise of AI and agentic-AI creating a token-driven economy is fueling a supercycle for Ethereum,” said Lee.
At the time of writing, ETH was trading just above $4,500 — down 2.7% on the day, but up nearly 5% compared to the same time last week.
