Bitcoin and Ethereum on the Edge of Breakout Ahead of Fed Decision
Social data shows nearly two-thirds of online discussion tilting positive — a sign that expectations are running hot just as the Federal Reserve prepares to announce its next policy move.
The Fed’s verdict comes tomorrow, and investors are split on how far a 25-basis-point cut could push risk assets. Some warn that if the central bank holds steady, the sudden disappointment could spark a sharp pullback. But others see an opportunity for digital assets to outperform.
Among them is Tom Lee of Fundstrat Global Advisors, who told CNBC that crypto looks positioned for what he called a “monster move” over the next quarter. In his view, Bitcoin and Ethereum are uniquely sensitive to liquidity, putting them in line to benefit more than most traditional markets once borrowing costs ease.
Lee also drew parallels between Ethereum’s current evolution and the financial shifts of the early 1970s, when the U.S. dollar abandoned its gold peg and new innovations began to reshape global markets. Beyond speculation, he pointed to Ethereum’s growing use in settlement, stablecoins, and tokenization as proof of its expanding role.
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Stocks are part of the story too: Lee expects small caps and the Nasdaq 100 to ride the same liquidity wave if the Fed begins cutting. But crypto, he argued, is likely to be the front-runner in that rally.
Whether the optimism holds will depend on tomorrow’s policy call. For Bitcoin and Ethereum, the reaction could show if Lee’s bold forecast is right — or if traders are once again caught leaning too far in one direction.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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