Bitcoin and Ethereum Could See a “Monster Move” in Q4, Says Tom Lee

Fundstrat co-founder and BitMine chairman Tom Lee expects a major rally in Bitcoin and Ethereum before year-end as liquidity conditions improve and the U.S. Federal Reserve begins easing monetary policy.

Lee told CNBC that both assets are highly sensitive to shifts in monetary liquidity and seasonality, suggesting that the next three months could deliver one of the biggest trades of 2025. He compared the setup to past cycles, noting that Fed cuts often restore confidence and fuel risk assets.

Markets expect a 25 basis point rate cut this week, though there remains a slim chance of a larger 50-point reduction. Lee argued that such moves would reinforce confidence in markets and support crypto.

Ethereum, he said, represents more than just a liquidity play. Lee likened it to Wall Street in 1971, when innovation exploded after the dollar was decoupled from gold. “Ethereum is evolving into a growth protocol,” he suggested, pointing to the convergence of blockchain, AI, and tokenized economies.

Meanwhile, BitMine continues to expand its Ether holdings, with the firm now controlling 2.15 million ETH — nearly 1.8% of the total supply — valued at $9.7 billion. The company disclosed $10.77 billion in combined cash and crypto reserves in its latest update.

At the time of writing, Bitcoin is trading near $115,000, while Ether hovers around $4,500. Both assets have faced short-term pullbacks but remain up on the week, with analysts watching closely for a breakout as Q4 begins.