Could Bitcoin and Ether See Huge Growth in the Next Three Months?

Could Bitcoin and Ether See Huge Growth in the Next Three Months?

In recent weeks, there has been increasing talk that cryptocurrencies, especially Bitcoin and Ethereum, could see significant growth in the coming months. Tom Lee, a leading analyst and co-founder of Fundstrat, is now making a bold prediction: a “huge move” upwards is expected during the fourth quarter of this year, supported by monetary policy easing in the United States and improved liquidity in global markets.

What is behind the expected growth?

According to Tom Lee, the key factor will be the Federal Reserve’s (Fed) interest rate cut. For the first time in a long time, the US central bank could cut rates by 25 basis points in the coming weeks, which could boost investor confidence and increase the flow of liquidity into risky assets, including cryptocurrencies. Futures markets are currently predicting only a 4% chance of a larger 50 basis point cut, but any easing could have a significant impact.

Lee compared the current situation to two significant periods – September 1998 and 2024, when the Fed cut rates in those months after extending its pause in rate hikes for the previous period. According to him, this could be a move that will re-instill confidence in the market and provide “real liquidity improvement”.

What are the expected prices?

Bitcoin is currently trading around $115,798 and Ethereum is around $4,511. Lee believes that in the next three months, these cryptocurrencies can make a “huge move” – a significant increase that could be one of the most significant trading moments of this year.

Ethereum as the new “Wall Street”?

Tom Lee goes on to explain that Ethereum is currently behaving like “Wall Street in 1971”, when the dollar left the gold standard and major innovations began to emerge. Ethereum is seen as a growth protocol that is sensitive to changes in monetary policy and liquidity, and is also a key part of the development of the blockchain economy associated with artificial intelligence and new technologies.

Why is Ethereum so important?

From a strategic investment perspective, Ethereum is considered the “biggest macro trade” for the next 10-15 years. BitMine, which focuses on accumulating cryptocurrencies, including ETH, adds to the market that Ethereum is becoming a key element in the convergence of Wall Street, blockchain, artificial intelligence and the token economy. It currently holds ETH worth almost $9.7 billion – which is almost 1.8% of the total supply of this cryptocurrency.

Summary

Tom Lee believes that the easing of monetary policy in the United States and improving liquidity can significantly support the growth of Bitcoin and Ethereum in the coming months. This “huge move” could be a key moment this year that sets a new direction for the cryptocurrency markets. Investors should be cautious, but at the same time monitor the development of economic indicators and the actions of central banks, as these factors may determine the future fate of these digital assets.

*This is not an investment recommendation.

The Coingarage Team