Tom Lee Predicts Bitcoin and Ether Poised for Major Rally Amid Fed Easing

According to Tom Lee, BitMine Chairman and Fundstrat co-founder, Bitcoin (BTC) and Ether (ETH) could be on the verge of a powerful rally in the final quarter of 2025. This major shift is fueled by a shift in monetary policy by the Fed in the United States. Lee believes these prominent cryptocurrencies are in for a strong seasonal momentum.

Lee appeared on CNBC on 16 September, and he predicted that both major cryptocurrencies could have a “monster move” in the last quarter of the year. He believes the Federal Reserve easing can be a big turning point. He said, “I think they could make a monster move … huge.” He also believes the assets may prove to be among the standout trades for the remainder of the year.

BitMine Chairman Believes A Major Rally is Coming for BTC and ETH

Lee pointed to historical parallels, comparing the current situation to September 1998 and 2024, when the Fed moved from an extended pause to rate cuts. With the U.S. central bank widely expected to trim rates by 25 basis points on Wednesday, and a slim 4% chance of a deeper 50-point cut, Lee argued that easing would reinject confidence and bolster liquidity. “The Fed can actually reinject confidence by saying we’re back into an easing cycle,” he said, describing the move as a “real improvement in liquidity.”

While Bitcoin has long been considered highly sensitive to monetary policy shifts, Lee suggested that Ethereum’s role is evolving. He likened Ether’s current trajectory to Wall Street in 1971, when the dollar decoupled from gold and innovation flourished. “Ethereum essentially is a growth protocol,” Lee said, highlighting its links to artificial intelligence, stablecoins, and broader blockchain adoption.

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Lee also revealed that BitMine has been aggressively acquiring Ether, citing its transformative potential. In its latest update, the company reported $10.77 billion in combined cash and crypto holdings, including 2.15 million ETH, valued at $9.7 billion, representing nearly 1.8% of the total Ether supply.

“The convergence of Wall Street moving onto the blockchain and AI creating a token economy is creating a supercycle for Ethereum,” Lee explained. Despite Monday’s pullback, with ETH trading just above $4,500, prices remain nearly 5% higher than last week, underscoring investor optimism ahead of the Fed’s decision.