A projected interest rate reduction by the Federal Reserve in late 2025 is anticipated to trigger a significant rally in growth assets, with Bitcoin and Ethereum poised as primary beneficiaries. This insight comes from Tom Lee, Chairman of BitMine and co-founder of Fundstrat, who foresees enhanced liquidity fueling a substantial market resurgence.
Speaking to CNBC, Lee identified the Nasdaq 100 index, Bitcoin, and Ethereum as top performers should the Federal Open Market Committee (FOMC) ease rates at its September 16-17, 2025, meeting. Market data from CME Group suggests a 96.1% probability of a 25-basis-point cut and a 3.9% chance of a 50-basis-point reduction, indicating strong expectations for a liquidity influx.
Economic Indicators and Historical Precedent
The impetus for a rate cut stems from observable economic slowdowns. Lee noted persistent business caution, reflected in a decelerating labor market and the ISM Manufacturing PMI remaining below the 50-point expansion threshold for 31 consecutive months. “For CEOs, it is critical to be confident that the Fed will cut rates,” Lee remarked, emphasizing the need for stimulative monetary conditions. He drew parallels to September 1998, a period when a similar Fed “pause” followed by easing led to significant asset appreciation, foreshadowing potential “monster movements” for digital assets.
Blockchain’s Strategic Role in Finance
Beyond traditional market impacts, Lee underscored blockchain technology’s transformative influence on finance. He highlighted major institutions like JPMorgan Chase and Goldman Sachs evolving into fintech entities, integrating AI and blockchain to modernize infrastructure and realize substantial savings, particularly by reducing labor costs. This strategic shift underscores Wall Street’s increasing embrace of digital innovations.
Reinforcing this outlook, BitMine, the company Lee chairs, holds a significant corporate stake in Ethereum, with cumulative assets in the digital currency valued at $10.8 billion as of September 15, 2025. This substantial institutional investment further illustrates growing professional confidence in blockchain-based assets.
Chris brings over six years of hands-on experience in cryptocurrency, bitcoin, business, and finance journalism. He’s known for clear, accurate reporting and insightful analysis that helps readers stay informed in fast-moving markets. When he’s off the clock, Chris enjoys researching emerging blockchain projects and mentoring new writers.