Tom Lee: If the Federal Reserve (FED) cuts interest rates, Bitcoin and Ethereum may experience a big pump within 3 months.

As the Federal Reserve (FED) is set to hold a policy meeting this week, the market widely expects the first interest rate cut of this year. Tom Lee, chairman of BitMine, predicts that Bitcoin (BTC) and Ethereum (ETH) may experience a "significant pump" in the next three months. He emphasized that Crypto Assets are one of the assets most sensitive to Liquidity, and loose policies will be the core engine driving the market.

Interest rate cut expectations heat up: Market focuses on the decision on September 17

Meeting Time: The Federal Reserve (FED) will announce its decision on September 18 at 12 AM Beijing time.

Market forecast: Interest rate cut of 25 basis points to 4.00%–4.25%, ending months of rate stagnation.

Political pressure: U.S. President Trump calls for further interest rate cuts, increasing pressure on the Fed for deliberation.

Market Sentiment: Asian stock markets hit new highs, the dollar is under pressure, and technology stocks along with crypto assets have recently led the rally.

Tom Lee's Three Major Beneficiary Sectors from Interest Rate Cuts

Tom Lee pointed out in an interview that if the Fed lowers interest rates this week, the three major asset classes will become the biggest winners:

1. Nasdaq 100 Index (especially "Mag 7" and AI concept stocks)

2. Bitcoin and Ethereum - "May surge significantly within the next 3 months"

3. Small-cap stocks and financial stocks

He uses the policy shift in September 1998 and September 2024 as an example, believing that historical data shows that the early stages of an easing cycle are often accompanied by a strong rebound in risk assets.

Why will BTC and ETH be the biggest winners?

High liquidity sensitivity: Crypto assets are extremely sensitive to changes in capital costs, and interest rate cuts will reduce holding costs and attract more leveraged capital to enter.

Seasonal Strength: The fourth quarter has historically been a better performance period for BTC and ETH.

Market sentiment is warming up: BTC is currently reported at 115,800 USD (weekly pump of 3.4%), ETH is reported at 4,528 USD (weekly pump of 5%), both boosted by expectations of interest rate cuts.

ETF fund inflows: Cheaper liquidity is expected to accelerate ETF absorption of spot, further reducing exchange supply.

How should investors allocate their resources?

Pay attention to the wording of the Fed's statement: If further easing signals are released, the market may accelerate before the end of the year.

Batch building positions: Utilize the fluctuations before and after policy announcements to gradually allocate BTC and ETH.

Pay attention to the correlation of risk assets: technology stocks, small-cap stocks, and Crypto Assets may strengthen in unison.

Conclusion

Tom Lee's perspective highlights the importance of this week's Fed decision for the global market. If interest rates are cut and more easing signals are released, Bitcoin and Ethereum are expected to become the core beneficiaries of a rebound in risk assets before the end of the year. For crypto investors, this could be a key entry point for the fourth quarter of 2025.