Bitcoin and Ether are poised for a significant surge in the fourth quarter of this year, driven by loosening monetary policy in the United States, as stated by Tom Lee, co-founder of Fundstrat and chairman of BitMine.
The sensitivity to monetary liquidity and the easing actions of global central banks, combined with robust seasonal trends, will fuel Bitcoin (BTC) and Ether (ETH) prices, reported Lee during a CNBC segment on Monday.
“I believe they could experience a monumental rise in the next three months … enormous.”
He noted that these assets could emerge as standout investments for the remainder of the year, particularly influenced by the Federal Reserve’s first interest rate cut this year.
Lee drew parallels to September 1998 and 2024, when the Fed maintained an “extended pause” and implemented rate cuts during that period. “The Fed can effectively restore confidence by indicating a return to an easing cycle,” he remarked, adding that a rate cut would signify a “marked improvement in liquidity.”
The US central bank is anticipated to reduce rates by 25 basis points on Wednesday, although futures markets suggest only a 4% likelihood of a more significant 50 basis point reduction.
Ethereum mirrors 1971 Wall Street
When questioned about whether BTC and Ether are still considered risk-on assets, Lee explained that Bitcoin is particularly sensitive to monetary policy and liquidity, while Ether also exhibits sensitivity in this regard.
“However, it’s also part of the AI transitioning to the blockchain and Wall Street’s move into the blockchain, representing a pivotal moment for crypto akin to stablecoin ChatGPT,” he added:
“I see Ethereum almost functioning like Wall Street did in 1971 when the dollar exited the gold standard, resulting in a surge of innovation … Ethereum is fundamentally a growth protocol.”
Related: Ethereum represents the ‘largest macro trade’ for the next 10-15 years: Fundstrat
Lee concluded by highlighting that this is the reason BitMine is actively expanding its Ether holdings.
BitMine increases its ETH stash
In its latest update on Monday, the company disclosed having $10.77 billion in cash and crypto assets, including 2.15 million ETH.
The firm now possesses $9.7 billion worth of Ether, amounting to nearly 1.8% of the total supply.
“The convergence of Wall Street’s movement to the blockchain with AI and agentic-AI establishing a token economy is giving rise to a supercycle for Ethereum,” remarked Lee.
At the time of writing, ETH prices were slightly above $4,500, reflecting a 2.7% decline for the day but an increase of nearly 5% compared to the same time last week.
Magazine: XRP to revisit highs? Bitcoin is unlikely to remain stagnant for long: Hodler’s Digest
