Fed Rate Cuts Could Drive Massive Crypto Rally in Q4, Says Tom Lee

Wall Street's favorite crypto bull just dropped a bombshell prediction that's sending shockwaves through digital asset markets.

Tom Lee, Fundstrat's managing partner and perennial bitcoin optimist, sees the Federal Reserve's potential rate cuts as rocket fuel for cryptocurrency prices heading into year-end.

The Liquidity Tsunami

When the Fed cuts rates, traditional yield plays suddenly look a lot less attractive. Money starts hunting for returns elsewhere—and crypto's volatility suddenly becomes a feature, not a bug.

Lee's track record gives this prediction extra weight. He's been consistently right about crypto's macro moves while traditional finance types were still calling bitcoin a bubble.

Q4 could deliver the perfect storm: looser monetary policy meeting crypto's natural adoption curve. Retail and institutional money might flood in simultaneously.

Of course, Wall Street will probably take credit for the rally while still claiming they don't 'get' blockchain technology. Some things never change.

TLDR

• Tom Lee predicts Bitcoin and Ether could surge in Q4 2024 due to Fed rate cuts and improved liquidity conditions
• BitMine holds $10.77 billion in crypto assets including 2.15 million ETH worth $9.7 billion
• The company owns nearly 1.8% of Ethereum’s total supply, making it the largest corporate ETH holder
• Lee compares Ethereum to 1971 Wall Street when the dollar left the gold standard, calling it a “growth protocol”
• BitMine’s stock has rallied over 1,133% since June, following the corporate treasury model pioneered by MicroStrategy

Bitcoin miner BitMine Immersion revealed Monday it holds over $10.7 billion in crypto assets on its balance sheet. The Nasdaq-listed company owns 2,151,676 ETH worth approximately $9.7 billion at current prices.

The firm also holds 192 Bitcoin valued at nearly $22 million and maintains $569 million in cash. BitMine owns a $214 million stake in crypto treasury company Eightco along with other digital assets.

This makes BitMine the largest corporate holder of Ethereum, the world’s second-largest cryptocurrency by market value. The company controls nearly 1.8% of Ethereum’s entire circulating supply.

Fundstrat co-founder Tom Lee, who chairs BitMine and developed the ETH accumulation strategy, made bullish predictions for both bitcoin and Ethereum. Speaking on CNBC Monday, Lee said the cryptocurrencies could make a “monster move” in the next three months.

Ethereum-focused MicroStrategy-style company BitMine Chairman Tom Lee told CNBC that if the Federal Reserve cuts rates, the biggest beneficiaries will be: the Nasdaq 100 (Mag 7 + AI sector), Bitcoin and Ethereum, which “could see a sharp rally in the next three months,” as well…

— Wu Blockchain (@WuBlockchain) September 16, 2025

Lee attributes this potential surge to Federal Reserve rate cuts and improving liquidity conditions. The Fed is expected to cut rates by 25 basis points Wednesday, marking the first reduction this year.

“The Fed can actually reinject confidence by saying we’re back into an easing cycle,” Lee explained. He compared current conditions to September 1998 and 2024 when rate cuts followed extended pauses.

Wall Street Moves to Blockchain

Lee drew parallels between ethereum and Wall Street in 1971 when the dollar abandoned the gold standard. He described Ethereum as a “growth protocol” benefiting from innovation and institutional adoption.

“Ethereum essentially trades like 1971 Wall Street when the dollar went off the Gold standard and there was a lot of innovation,” Lee said. He emphasized Ethereum’s role in bringing both Wall Street and artificial intelligence onto blockchain networks.

The convergence of traditional finance moving to blockchain and AI creating token economies represents what Lee calls a “supercycle for Ethereum.” This thesis drives BitMine’s aggressive accumulation strategy.

Following MicroStrategy’s Model

BitMine follows the corporate treasury model pioneered by MicroStrategy, which began buying Bitcoin in 2020. MicroStrategy now holds 638,985 BTC worth over $73 billion under its current name, Strategy.

Other Nasdaq-listed companies have adopted similar strategies, purchasing various cryptocurrencies including Solana, XRP, and Toncoin. These firms have generally achieved short-term stock price gains.

BitMine’s stock reflects this trend, rallying over 1,133% since late June. The company traded NEAR $53 per share Monday, up nearly 5% for the day after touching a high of $135 in July.

In May, BitMine pivoted from traditional bitcoin mining to raising capital for Ethereum purchases. Lee has stated the company aims to acquire 5% of Ethereum’s total supply over time.

Consumer sentiment also supports Ethereum’s outlook, with nearly 70% of Myriad market participants believing ETH will reach $5,000 before falling to $3,500. Ethereum currently trades above $4,520, up 78% over the past three months according to CoinGecko data.