Lee Predicts Huge Q4 for BTC and ETH if Clarity Act Passes

Fundstrat's Tom Lee has identified four catalysts that could drive crypto higher into year-end, and one of them is crucial for Bitcoin and Ethereum prices.

In a recent interview with CNBC, Lee pointed out that the CLARITY Act passing this year could be the key to a huge fourth quarter for both assets. According to Lee, if the act passes, he expects Bitcoin and Ethereum to have 'a huge fourth quarter.'

Lee's reasoning is based on various factors, including crypto's performance relative to other asset classes, which has been the best-performing macro asset in the third quarter so far. He also mentioned that the crypto market's traditional four-year cycle is set to end next month, which could bring back investors who had stepped away from the space.

In addition, Lee highlighted strengthening fundamentals building throughout the year, including strong momentum in tokenization and a breakout product launch from Robinhood. The adoption of generative AI is also benefiting the sector, creating tailwinds for crypto.