Lee Sees Crypto Rally as Four-Year Cycle Ends: 'Bitcoin Could Easily Be in the Six Figures'
Fundstrat's Tom Lee made some bold predictions on CNBC about the crypto market's future. According to him, September is shaping up to be a strong month for markets, and Bitcoin could reach six figures if the Fed holds rates steady at its Sep. 15 meeting.
Lee pointed out that historically, September has been a weak month, but he believes mounting bearish consensus may actually set the market up to surprise to the upside. His base case is the Fed holding rates at 7%, and if that happens alongside weaker jobs and CPI data, markets could rally very strongly.
The S&P support around 7,300 to 7,400 would likely provide a floor for any October weakness, with the index pushing toward 8,200 or higher by year end. Lee laid out four reasons why September and Q4 could be a breakout period for crypto:
Crypto is already the best-performing macro asset of Q3
The four-year crypto cycle ends next month, bringing sidelined investors back
Korean investors who rotated into AI stocks early this year are already showing volume pickups in crypto
A CLARITY Act passage would give Bitcoin and Ethereum a major fourth-quarter tailwind.