Tom Lee Predicts Q4 Bitcoin & ETH Rally on Fed Cuts

Fundstrat co-founder Tom Lee predicts a “monster move” for Bitcoin and Ethereum in Q4 as the Federal Reserve shifts toward rate cuts. He cites historical easing cycles (1998, 2024) and futures pricing for a 25 bp cut, which he says will boost monetary liquidity, risk appetite and seasonal demand. Bitcoin’s sensitivity to monetary policy underpins a potential rally, while Ethereum, dubbed a “growth protocol,” stands to benefit from AI-driven use cases, DeFi expansion and Wall Street adoption. Institutional accumulation supports this outlook. Lee’s firm BitMine holds $10.77 billion in cash and crypto, including 2.15 million ETH (≈1.8% of supply). This significant position suggests conviction in an Ethereum “supercycle” driven by tokenized financial products and on-chain AI protocols. At the time of writing, Bitcoin traded near $115,000 and Ethereum around $4,500, both up weekly despite short-term volatility. Traders should monitor Fed policy announcements for rate cut timing, on-chain flows—especially net inflows and outflows on major exchanges—and ongoing reports of institutional accumulation. Funding liquidity metrics and central bank communications can help time entries and exits. Overall, improved liquidity from Fed rate cuts and robust institutional demand set the stage for a bullish Q4 rally in BTC and ETH.