Lee Sees Surprise Upside in Crypto Market Ahead of Fed Decision
Fundstrat's CIO Tom Lee believes that the market could see a 'surprise upside' despite growing Fed rate hike fears. September is typically a weak month, but Lee thinks it might surprise us to the upside.
The September 15th Fed meeting is the pivot point. If the Fed does not cut or hike (hold interest rates at current 3.50%-3.75%), the markets could rally very strongly.
Lee expects the asset with the most FOMO in September and into year-end to be crypto, particularly Ethereum ($ETH). He notes that the macro environment, especially Fed rate hike fears, has punctured the late August crypto market rally.
The hawkish tone stalled Bitcoin's rally, keeping its price struggling below $80K over the weekend and into September. Two key labor reports will be released before the Fed rate decision on September 1st (JOLTS Jobs Openings) and September 4th (Non-Farm Payrolls).