- Fed rate cut predicted in September 2025.
- Significant benefits expected for Bitcoin and Ethereum.
- Nostalgia to financial shifts in 1998 and 2024.
Tom Lee of Fundstrat predicts a significant market shift for Bitcoin, Ethereum, and equities if the Federal Reserve cuts interest rates in September 2025.
The potential rate cut could restore market liquidity and boost confidence, potentially leading to substantial gains for digital assets and interest-rate sensitive stocks.
Tom Lee, Head of Research at Fundstrat, foresees a Fed rate cut in September 2025. He predicts this will significantly benefit Bitcoin (BTC) and Ethereum (ETH), drawing parallels to financial shifts in September 1998 and 2024. Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, stated, “The Fed can actually reinject confidence by saying we’re back into an easing cycle…a shift lower in borrowing costs would restore liquidity and business expansion.”
Lee, formerly JPMorgan’s Chief Equity Strategist, highlights the Federal Reserve’s role in potentially reinvigorating confidence through lower borrowing costs. His insights position NASDAQ 100 and small caps as top trades during this expected period of monetary easing.
Expected outcomes include enhanced liquidity and an increased risk appetite across both traditional equities and digital assets. The anticipated shift mirrors past cycles where Fed pivots have historically supported risk-on assets like cryptocurrencies.
Financial analysts speculate on liquidity restoration as a direct result of potential rate cuts. This macro financial decision could yield a positive atmosphere for financial markets, similar to pivotal moments observed in 1998 and 2024.
No comments from other key opinion leaders are available currently. Regulators, such as the SEC or CFTC, have not released statements on Lee’s predictions.
Industry experts highlight historical scenarios where Fed rate adjustments triggered shifts in risk assets. Notably, corporations holding significant crypto treasuries play critical roles in influencing coin prices, showcasing 4% BTC and 3.1% ETH holdings.
