Bitcoin has already had a huge run this year, but one well-known Wall Street voice thinks the rally is far from over. Tom Lee, chairman of Bitmine Technologies (BMNR) and co-founder of Fundstrat Capital, says Bitcoin could “easily” climb to $200,000 before the year is out. With the cryptocurrency trading near $113,000, that would mean another 77% surge in just a few months.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Fed Rate Cuts Could Be the Big Catalyst
Lee believes the Federal Reserve’s next moves will decide Bitcoin’s short-term future. He pointed to the September 17 meeting as a key moment when the Fed may announce its first rate cut of the year. According to the CME FedWatch Tool, markets are pricing in as many as three cuts this year and as many as six by September 2026. That would be a reduction of 1.5 percentage points in just 12 months.
Lower interest rates typically weaken the dollar and push investors toward riskier assets. Lee says Bitcoin and Ethereum are especially sensitive to monetary policy shifts. If the Fed follows through with aggressive cuts, he argues it could ignite the next leg of the crypto rally.
Economic Data Could Force the Fed’s Hand
Not everyone is convinced the U.S. economy needs rapid rate cuts. Growth has stayed strong and unemployment sits near 4.3%, close to what economists call full employment. At the same time, the major stock indices have been setting new record highs since late June.
Still, warning signs are flashing. Nonfarm payroll data from July and August hinted at weakness, and the Bureau of Labor Statistics is expected to issue a downward revision showing 800,000 fewer jobs than previously reported. If that data proves accurate, the Fed may be forced to act faster and deeper. Some analysts even see a chance of a 50-basis-point cut in September.
Bitcoin’s Seasonal Strength Adds to the Case
Beyond interest rates, Lee pointed to a simple pattern: Bitcoin tends to shine in the fourth quarter. Historically, the last three months of the year have produced strong gains for the cryptocurrency market. Lee expects the same this year, saying that the combination of seasonal trends and easier monetary policy could create the perfect setup for Bitcoin.
He estimates the price could jump another 77% before December ends, taking Bitcoin to his $200,000 target. If that happens, it would cement 2025 as the biggest breakout year in Bitcoin’s history.
At the time of writing, Bitcoin is sitting at $112,558.75.
