Tom Lee Predicts “Monster” Q4 Rally for Bitcoin and Ether

Bitcoin and Ether could be heading for a powerful surge in the final quarter of this year as monetary policy in the United States begins to loosen, according to Fundstrat co-founder and BitMine chairman Tom Lee. 

Speaking on CNBC Monday, Lee said a mix of easing central bank policies, improving liquidity, and historically strong year-end seasonality could fuel a sharp move higher.

“I think they could make a monster move in the next three months … huge,” Lee told the network, calling Bitcoin and Ether potential “stand-out trades” for the remainder of 2025. He expects the U.S. Federal Reserve to cut interest rates for the first time this year, creating fresh momentum for risk assets.

Lee likened the current environment to September 1998, when the Fed began cutting rates after a long pause, injecting confidence back into markets. “The Fed can actually reinject confidence by saying we’re back into an easing cycle,” he explained, adding that even a modest rate reduction would bring a “real improvement in liquidity.”

Rate Cuts Could Ignite Crypto Momentum

The U.S. central bank is widely expected to lower its benchmark rate by 25 basis points on Wednesday, while futures markets assign only a slim chance—around 4%—of a deeper 50 basis point cut. 

Lee believes any policy pivot will benefit Bitcoin in particular, given its reputation as a liquidity-sensitive asset.

When asked if cryptocurrencies remain “risk-on,” Lee said Bitcoin is highly responsive to monetary policy, while Ether also reacts to liquidity shifts but offers additional growth angles.

“It’s also part of this AI moving onto the blockchain and Wall Street moving onto the blockchain and that whole stablecoin ChatGPT moment for crypto,” he said.

Ether in a “1971 Wall Street” Moment

Lee described Ether as “almost trading like 1971 Wall Street when the dollar went off the gold standard,” pointing to rapid innovation and an expanding ecosystem. “Ethereum essentially is a growth protocol,” he noted, highlighting the convergence of artificial intelligence and blockchain technology as a key catalyst.

Lee-led BitMine reported $10.77 billion in cash and crypto holdings, including 2.15 million ETH, worth about $9.7 billion—roughly 1.8% of Ether’s total supply. 

Lee called this accumulation a response to a “supercycle for Ethereum” driven by AI adoption and financial markets moving on-chain.

At the time of writing, ETH traded just above $4,500, down 2.7% on the day but still up nearly 5% from the previous week, underscoring investor anticipation of a potential fourth-quarter breakout.