- Market analyst Tom Lee anticipates price increases for both Bitcoin (BTC) and Ethereum (ETH) during the fourth quarter.
- The Fundstrat executive bases his projection, in part, on the Federal Reserve’s recent decision to lower interest rates by 0.25%.
- Near-term forecasts suggest a positive outlook for the values of both leading cryptocurrencies.
Tom Lee, a co-founder at Fundstrat, has indicated the potential for a strong performance by Ethereum (ETH) in the final quarter of the year. He cites the recent move by the US Federal Reserve to reduce interest rates as a contributing factor. Lee also projects a concurrent rise in the value of Bitcoin (BTC). The expectation is that both ETH and BTC prices will see an upward trend once the current market correction concludes.
Tom Lee Predicts Q4 Gains for Ethereum
Fundstrat’s Tom Lee is reportedly forecasting a potential surge in the price of ETH throughout the fourth quarter. He believes this increase will be fueled by the Federal Reserve’s recently implemented quarter-point interest rate decrease. While Lee hasn’t specified a precise target, projections suggest ETH could surpass the $5,000 threshold in the coming period.
Lee further suggests that expanding adoption by global central banking institutions will contribute to ETH’s price gains. Currently, the price of ETH has seen a slight dip of approximately 0.80% in the last day. Ethereum is currently trading at $4,542.40, accompanied by a significant 36.21% reduction in its 24-hour trading activity.
Ethereum’s highest recorded price was $4,953.73, attained on November 16, 2021. It retains its position as the second-largest cryptocurrency globally, possessing a market capitalization of $548.28 billion.
Bitcoin Projected for Q4 Growth Too
Tom Lee is also expressing optimism for Bitcoin’s (BTC) performance in the last quarter of the year. He emphasizes that the recent lowering of borrowing rates, alongside anticipation of further rate reductions, is likely to positively impact the price of the premier cryptocurrency. According to Lee, cuts in the Federal Reserve’s rate would improve industry faith and would be advantageous to possessions and other assets.
According to reports, crypto values often react sensitively to policies. Rate cuts would therefore favor flows into riskier investments, BTC in this case. After the FOMC meeting, Standard Chartered mentioned the possibility of a 50 bps cut in lending rate. BTC is currently exchanging hands at a price of $116,984.74 with a slight price decrease of 0.12% in the last 24 hours.
Bitcoin’s price shows an overall increase of 1.55% over the past week. Its 24-hour trading volume has decreased significantly by 37.61%, resulting in a total value of $42.02 billion. Bitcoin remains the dominant cryptocurrency worldwide, boasting a market capitalization of $2.33 trillion.
BTC and ETH Price Forecasts
Near-term price forecasts project that Bitcoin could potentially climb to around $120,526 within the next month. Current volatility surrounding BTC is about 2.18%, as evidenced by a 14-Day Relative Strength Index (RSI) score of 61.94. Overall sentiment towards Bitcoin is optimistic, with a Fear & Greed Index (FGI) score reflecting neutrality at 53 points.
Regarding Ethereum, short-term estimates indicate that its price may exceed $5,100 within the coming 30 days. Such a rise would represent roughly an 11.43% increase from its present value, amidst a volatility level of 3.24%. Investor attitude toward Ethereum remains optimistic despite a neutral FGI score of 53.
Disclaimer: The information provided in this article should not be interpreted as financial advice or recommendations for trading or investing in cryptocurrencies.
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