Bitcoin and Ethereum Primed for ’Monster Move’ Post-Fed Rate Cut

Markets brace for crypto eruption as Fed policy shift ignites digital asset frenzy.

The Liquidity Tsunami

When central banks flip the switch, crypto markets don't just wake up—they erupt. Lower rates send institutional money scrambling for yield, and digital assets stand ready to absorb the overflow.

Historical Precedent

Previous easing cycles saw Bitcoin and Ethereum rip past resistance levels while traditional finance stuck to spreadsheets. This time won't be different—just bigger.

The Institutional Floodgates

Hedge funds and family offices already position for the pump. They'll chase alpha while retail investors still debate entry points. The smart money moves before the announcement, not after.

Volatility Playbook

Expect whipsaws, fakeouts, and emotional capitulation. Then the real rally begins. Crypto doesn't do subtle—it either bleeds out or goes parabolic.

Traditional finance will call it irrational while quietly allocating more to digital assets. The irony's thicker than a banker's bonus.

The Federal Reserve meets this week with markets expecting a 25-basis-point rate cut. The outcome could set the tone for stocks and digital assets in the months ahead.

Tom Lee: Crypto May Lead the Next Leg Higher

Tom Lee, head of research at Fundstrat Global Advisors, told CNBC that Bitcoin and ethereum could be among the biggest winners if the Fed begins cutting rates. He said both assets are highly sensitive to liquidity and may see what he called a “monster move” in the next three months.

Lee placed Bitcoin and Ethereum alongside the Nasdaq 100 and U.S. small caps as key areas to watch. He argued that lower borrowing costs tend to restore confidence in businesses and investors, creating the conditions for liquidity-driven trades.

Why Bitcoin and Ethereum Stand Out

Bitcoin often reacts to changes in monetary policy more directly than other assets. Ethereum, while also sensitive to liquidity, carries the added factor of adoption. Wall Street’s use of blockchain and the growth of stablecoins give Ethereum a role that goes beyond speculation. Lee compared its position to the U.S. financial system in 1971 when the dollar left the Gold standard and new forms of innovation emerged.

Sentiment Running Hot

Social data shows 64% of online comments about Bitcoin are bullish, the highest level since July. That Optimism shows rising expectations ahead of the Fed’s decision. But history shows markets often move against the crowd. A cut could lift Bitcoin and Ethereum in the short term, but a surprise hold on rates may trigger a quick correction.

The highly anticipated FOMC meetings in the US kick off today, and will conclude tomorrow with an anticipated result of interest rates being cut by 25bps.

We are seeing the impact of this in Bitcoin's social metrics. Bullish comments are outnumbering bearish comments,… pic.twitter.com/vmwBtMgLcH

The Fed’s decision is due tomorrow. For Bitcoin and Ethereum, the reaction may reveal whether Tom Lee’s call for a major move proves right.