Tom Lee Predicts Bitcoin and Ethereum Price Surge in Next 3 Months on Fed Rate Cuts
Fed rate cuts could ignite crypto rally—Bitcoin and Ethereum poised for major moves.
The Catalyst
Lower rates typically weaken the dollar, making alternative assets like cryptocurrencies more attractive. Traders are positioning for what could be one of the biggest crypto runs this year.
Market Mechanics
Interest rate cuts reduce the opportunity cost of holding non-yielding assets. That pushes capital toward risk-on investments—and crypto often leads the charge. Expect volatility, but also potential breakout momentum.
The Skeptic's Take
Sure, Wall Street loves a good narrative—even when it’s built on the Fed’s flip-flopping. Because nothing says 'sound investment' like betting on monetary policy whims.
Bottom line: keep an eye on the Fed. When they cut, crypto tends to run.
Is the crypto market ready for Tom Lee’s predicted Fed rally?
On Sept. 16, a day before the Fed interest rate decision, the overall crypto market cap stands well above the psychological $4 trillion barrier. At press time, the overall crypto market cap has reached $4.11 trillion, which is a good sign that ample liquidity is flowing through the markets.
Bitcoin continues to dominate the market at 55.43%, while Ethereum’s dominance stands at 13.05%.
According to data from TradingView, Bitcoin is currently trading at around $115,498, consolidating just below the $116,000 level after showing steady upward momentum earlier this month. The chart reflects a period of choppy price action, with multiple retests of the $116,000 resistance zone and solid support forming NEAR $114,000.
Meanwhile the Relative Strength Index or RSI sits at around 51, signaling a neutral stance that sits neither in the overbought nor oversold zone. This suggests that the market is bracing itself for the Federal Reserve’s interest rate cut decision.
If the Fed follows through with a rate cut, Bitcoin may benefit from increased liquidity and a weaker dollar, potentially fueling a breakout above the $116,000 resistance barrier. Such a move could open the door for BTC to reach the $118,000 to $120,000 range.
On the other hand, Ethereum is trading near $4,508, pulling back after reaching highs above $4,700 earlier this month. The chart shows a recent decline with momentum weakening, as reflected in the RSI at 40, which suggests bearish sentiment and that ETH is approaching oversold conditions.
Key support lies around $4,400, with resistance moving backwards to near $4,650. Price action indicates hesitation, as traders remain cautious ahead of the Fed rate decision. A meaningful rate cut is likely encourage liquidity inflows into risk assets, potentially sparking a rebound and helping ETH to reclaim the $4,600 to $4,700 range.
