Tom Lee, head of research at Fundstrat Global Advisors and chief investment officer at Fundstrat Capital, said on Monday that Bitcoin could climb to $200,000 before the end of 2025. Speaking on CNBC’s Squawk Box, Lee argued that the Federal Reserve’s upcoming policy decisions will be critical for the path of cryptocurrencies.
“Bitcoin and cryptocurrencies like Ethereum are very sensitive to monetary policy,” Lee said. “If the Fed moves toward rate cuts, it could set the stage for a very strong fourth quarter.”
Lee’s comments came as new jobs data pointed to a softening labor market. Bond markets are now expecting three interest rate cuts this year, more than the Fed’s current projection of two.
According to Lee, the slowdown in hiring is becoming harder for the Fed to ignore. “Once the labor market weakens, it is difficult to reverse that momentum,” he said, adding that faster rate cuts could support housing, boost business confidence, and encourage broader economic growth.
Lee explained that Bitcoin tends to perform well in the fourth quarter, particularly during periods when the Fed shifts toward easing. He pointed to past examples in 1998 and 2024, when similar cycles of rate cuts coincided with strong rallies in both equities and cryptocurrencies.
“Equities do well in those environments, and crypto, which often moves in line with equities, could benefit even more,” Lee explained. “That’s why I believe Bitcoin can reach $200,000 before year end.”
Ethereum, he added, could also see gains, especially if small-cap stocks continue their recent strength. “At all-time highs, investors are still bearish. That tells me there is room for markets, including crypto, to move higher if the Fed delivers on cuts,” Lee said.
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.
The RENDER price prediction 2025 narrative is heating up rapidly as Render Network tests a…
Binance founder Changpeng Zhao (CZ) has once again sparked discussion on X over the debate…
It’s been a defining week for Bitcoin and beyond. From Trump’s bold vow to make…
The Filecoin (FIL) decentralized storage token has just lit up the market again after surging…
As the INJ price prediction 2025 draws new attention, Injective now trades in the critical…
The Hyperliquid team is trialing a new feature called BLP, likely a BorrowLendingProtocol, on their…
