Fundstrat’s Tom Lee predicts crypto could make “monster” moves in the coming months as Federal Reserve rate cuts provide tailwinds, while Standard Chartered analyst Geoff Kendrick says Ethereum ETH/USD treasury companies have the “highest probability of being sustainable” compared to Bitcoin BTC/USD rivals.
What Happened: Speaking on CNBC as Fundstrat marked its 11th anniversary on Monday, Lee described the market as “mid-cycle” rather than late-stage.
While the so-called “Magnificent 7” stocks and AI remain in play, he sees rate cuts as the real catalyst for the next leg higher.
“The Fed can actually reinject confidence by saying we’re back into an easing cycle,” Lee said, adding that a shift lower in borrowing costs would restore liquidity and business expansion.
If history is any guide, Lee argued, the setup mirrors September 1998 and September 2024—periods when the Fed pivoted after long pauses.
His top trades: the Nasdaq 100, Bitcoin and Ethereum, and interest-rate sensitive small caps and financials.
For crypto in particular, Lee sees a “monster move in the next three months.”
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Why It Matters: Lee’s outlook echoes that of Kendrick’s, who sees Ethereum treasury companies focusing on their ability to generate staking yields.
This, he estimates, could lift their market-to-net asset value (mNAV), an advantage over Bitcoin-focused competitors that cannot stake their holdings.
The sustainability question matters significantly given digital asset treasuries’ market influence, with these companies now holding “4.0% of all BTC, 3.1% of ETH and 0.8% of SOL,” making their success “crucial for coin prices,” according to Kendrick’s analysis.
Lee’s BitMine Immersion Technologies Inc BMNR leads the Ethereum treasury space with 2.15 million ETH worth over $9.7 billion, more than double competitor SharpLink Gaming‘s SBET 837,230 ETH holdings.
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