Tom Lee: Bitcoin and Ethereum ready for ‘sample movement’ after interest reduction

The rates of Bitcoin (BTC) and Ethereum (ETH) can rise considerably in the coming months. That is what Tom Lee, co -founder of consultancy firm Fundstrat and chairman of Bitmine. According to him, interest reductions by the US central bank and improve liquidity for a favorable climate.

Fed-interest reduction of 25 basic points expected

Lee spoke yesterday in an interview with CNBC. “I think they can make a sample movement in the next three months … huge,” he said. According to him, the circumstances are comparable to earlier periods in which the Fed started with interest rates after a break.

It is expected that the Federal Reserve will lower the interest with 25 basic points tomorrow. A greater step of 50 basis points is seen by the Futuresmarkt as unlikely, with a chance of only 4 percent. However, according to Lee, even a limited reduction can mean a lot to crypto.

“The Fed can give confidence again by saying: we are in a relaxation cycle again,” says Lee. That would greatly improve liquidity. According to him, Bitcoin is especially sensitive to monetary policy, while Ethereum also benefits from broader developments such as artificial intelligence and financial innovation on the blockchain.

His company Bitmine has been building his position in Ethereum in recent months and recently bought 82,000 ETH in a week. It now owns 2.15 million ETH, worth 9.7 billion dollars. This means that the company has almost 1.8 percent of the total supply and is therefore the largest Ethereum-Treasury company in the world.

Ethereum course fluctuates around $ 4,500

According to Lee, the combination of Wall Street is moving towards Blockchain and the rise of AI a unique opportunity. He even speaks of a “super cycle” for Ethereum.

At the time of writing, the Ethereum course is slightly above $ 4,500, a decrease of 1.8 percent compared to a day earlier. Yet the rate has risen almost 5 percent in a week. Bitcoin is currently around $ 115,700.

Tomorrow night it will become clear whether the Fed will indeed lower interest rates. If that happens, according to Lee the door will be opened to one of the largest movements of crypto in months.