Bitcoin and Ether Set for Major Gains

Tom Lee, the co-founder of FundStrat and chairman of Bitmine, recently shared insights on the anticipated rallies of Bitcoin and Ether in the fourth quarter of this year, thanks to the easing of monetary policies in the US.

According to Lee, both Bitcoin (BTC) and Ether (ETH) prices will benefit from increased financial liquidity and global central bank easing—alongside a traditionally strong seasonal performance. He expressed this viewpoint during a CNBC interview on Monday.

“I think they’ll be able to move monsters in the next three months… it’s huge.”

Lee emphasized that these cryptocurrencies represent some of the last “outstanding deals” of the year, primarily influenced by the first interest rate cuts from the Federal Reserve this year.

He drew comparisons to significant market movements in September 1998 and beyond, stating, “The Fed can actually resume confidence by saying we are back in the easing cycle,” and noted that interest rate cuts would enhance liquidity.

The US Central Bank is anticipated to lower rates by 25 basis points on Wednesday, while a futures market indicates only a 4% chance of a more substantial 50 basis point cut.

Ethereum’s Unique Position

When asked if BTC and Ether are still viewed as assets for risk-takers, Lee remarked that Bitcoin is especially sensitive to liquidity and monetary policy shifts, while Ether also reflects these aspects.

He added, “But it’s also part of this AI movement towards blockchain and the shift occurring on Wall Street.” He further elaborated, saying, “I think Ethereum would almost trade like Wall Street in 1971 when the dollar was off the gold standard, which led to a lot of innovation… Ethereum is essentially a growth protocol.”

Bitmine’s Ether Accumulation

In a recent update, Bitmine disclosed that it possesses $10.777 billion in cash and cryptocurrency holdings, which includes 2.15 million ETH.

The company’s holdings of Ether are valued at approximately $9.7 billion, accounting for nearly 1.8% of the total supply. Lee noted, “The convergence and creation of token economy on both blockchain and Wall Street brings forth a supercycle for Ethereum.”

At the time of this report, ETH prices hovered just above $4,500, reflecting a 2.7% decline for the day but a nearly 5% increase compared to the same time last week.