Investor Tom Lee believes that big rallies are in store for Bitcoin (BTC) and Ethereum (ETH) toward the end of the year as one bullish catalyst takes shape.
In a new CNBC interview, Lee believes that a fresh Fed rate-cutting cycle is what the US economy needs to get back on track and take the stock market to new highs.
“But I think the next leg of this is really the Fed cutting, helps the ISM get back above 50, brings down mortgage rates, so it’s a cyclical broadening trade. And then I think, you know, financials, I think, are still important, because I think that they’re going to re-rate more like technology stocks. Goldman and JPMorgan are basically technology companies now. And as they embrace the blockchain, they’re going to become more streamlined and less employee dependent, much more AI driven.”
Should the Fed ease, Lee predicts that Bitcoin and Ethereum will spark “huge” rallies.
“So I’m looking at September 1998 and September 2024 as the playbook, because those are both years where the Fed was on extended pause and they cut in September. The number one trade is Nasdaq 100. So I think that’s why the Mag 7 and the AI trade gets a lot of liftoff. The second is monetary liquidity sensitivity, global central banks easing. That’s Bitcoin and Ethereum and seasonally strong.
I think they could make a monster move in the next three months, like huge. And the third, of course, is interest-rate sensitives. That’s really small caps and financials. But really, the first two might be the standout trades.”
At time of writing, Bitcoin is trading for $116,946, while ETH is worth $4,513.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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