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, 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.
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.
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 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.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Ethereum now trades near the $3,200 zone after a sharp dip, yet some analysts say…
Lisbon, Portugal, — Global digital asset trading platform Zoomex, as the diamond sponsor of CCCC…
Bitcoin’s rapid reversal has forced investors to reassess the assumptions that carried the market through…
Recent market trends have made one thing clear: presales are the next big meta that…
Cardano fans have waited months for this day, and now the moment is finally here.…
Bitcoin’s price crash from $126K to $89K has shocked the entire market, and its dominance…
