Lee Sees Q4 Rally for Bitcoin and Ethereum if CLARITY Act Passes

Tom Lee, co-founder of Fundstrat, believes Bitcoin and Ethereum are poised for significant gains in the fourth quarter if the CLARITY Act passes this year. According to Lee, one of four catalysts that will drive crypto prices higher by year-end, is the potential passage of the CLARITY Act.

In a recent CNBC interview, Lee discussed his multi-part case for strength in digital assets. He pointed out that crypto has been the best-performing macro asset in the third quarter so far and expects this performance to draw fresh institutional allocation in September and the fourth quarter. Additionally, Lee believes the traditional four-year cycle is set to end next month, which he expects will bring back investors who had stepped away from the space.

Lee also highlighted strengthening fundamentals building throughout the year, including strong momentum in tokenization and a breakout product launch from Robinhood. He noted that generative AI adoption is benefiting the sector as well. The fourth catalyst Lee mentioned was the CLARITY Act itself, which he stated would have a huge impact on Bitcoin and Ethereum prices if it passes.