Tom Lee predicts Bitcoin and Ethereum could surge in the next three months as Fed rate cuts improve liquidity and market confidence.
Bitcoin and Ethereum may be on the verge of a massive rally. According to Fundstrat co-founder and BitMine chairman Tom Lee, the two largest cryptocurrencies could make a “monster move” in the next three months.
Lee pointed to the U.S. Federal Reserve’s expected interest rate cuts as the main driver. He believes improved liquidity conditions and seasonal strength will set the stage for digital assets to outperform in the fourth quarter.
Why Tom Lee Sees a Big Move Coming
In an interview with CNBC, Lee compared the current environment to the period between September 1998 and the previous year.
In both cases, the Fed paused before eventually cutting rates mid-month. He said that such decisions historically improved liquidity and supported the market’s growth.
BULLISH 🚨 TOM LEE SAID ON CNBC THAT #BITCOIN WILL MAKE A “MONSTER MOVE” IN THE NEXT 3 MONTHS pic.twitter.com/4UknlW7JPi
— That Martini Guy ₿ (@MartiniGuyYT) September 16, 2025
This time, traders expect a 25 basis point cut at the upcoming Fed meeting. So far, futures markets show only a small chance of a deeper 50 basis point cut. Still, even a modest adjustment could reignite investor interest.
Lee believes this makes Bitcoin and Ethereum stand out as trades for the rest of the year. Both assets, he said, are highly sensitive to monetary policy and global liquidity.
Bitcoin Price Near Resistance
At the time of writing, Bitcoin is trading around $115,498. The charts show repeated tests of the $116,000 resistance level, with support forming near $114,000.
The Relative Strength Index (RSI) sits at 51, and indicates a neutral stance. This means that BTC is neither overbought nor oversold, and is leaving room for movement once the Fed’s rate decision is announced.
If liquidity improves, Bitcoin could break above $116,000. Such a move may open a path toward $118,000 or even $120,000.
Ethereum Trading Like Wall Street in 1971
Ethereum is currently trading around $4,508, after pulling back from highs above $4,700 earlier this month. Its RSI has dropped to 40, signalling bearish sentiment and approaching oversold conditions.
Support sits near $4,400, while resistance has shifted back toward $4,650. Price action shows hesitation, as traders wait for clearer signals from the Fed.
Lee sees Ethereum differently from Bitcoin. He said Ethereum functions like a “growth protocol,” similar to Wall Street in 1971 when the dollar left the gold standard and innovation surged.
BitMine Expands Ethereum Holdings
Lee’s optimism about Ethereum also showed up in his company’s strategy. BitMine recently revealed it holds $10.77 billion in cash and crypto, including 2.15 million ETH. That equals about 1.8% of the total Ether supply.
Bitmine just bought $130,000,000 $ETH.
They’re currently holding $5,260,000,000 Ethereum. 🚀 pic.twitter.com/XbUb1l0B68
— Ted (@TedPillows) August 15, 2025
According to Lee, the rise of AI and blockchain adoption across Wall Street could fuel an Ethereum supercycle. That is why BitMine continues to accumulate ETH aggressively.
Crypto Market Braces for Fed Decision
The overall crypto market cap currently stands at $4.11 trillion, according to CoinGecko. Bitcoin dominance is at 55.43%, while Ethereum holds 13.05%.
Traders have been moving funds into stablecoins and are preparing to deploy capital once the Fed decision is confirmed. This indicates a high anticipation across the market, which could lead to possible rallies in risk assets.
Lee also noted that Nasdaq 100 stocks, especially major AI-related companies, could benefit alongside crypto. Small caps and financial stocks may see similar gains if interest rates fall.
