Tom Lee called the fourth quarter one of the biggest rallies of our lifetime for stocks, but Ethereum faces a much steeper climb than that forecast implies. Ethereum trades at $2,470 and would need a 100% gain to reclaim its prior record, even as Lee argues Wall Street's shift toward blockchain could fuel a bullish 12-month stretch for crypto.
Fed Rate Hike Follows Lee's Bullish Call
Tom Lee, who chairs Bitmine, the largest corporate Ethereum treasury, told CNBC on September 15 the fourth quarter could be "one of the biggest rallies of our lifetime". Less than 24 hours later, the Federal Reserve raised rates and left the door open to another hike.
Stocks No Longer Guarantee a Crypto Rally
For years, gains in technology stocks often lifted Bitcoin alongside them. But Bitcoin's three-month correlation with the Nasdaq 100 has fallen sharply while its relationship with gold has climbed to its highest level in years, leaving Ethereum and the rest of the crypto market with more to prove than simply waiting for a stock rally.
Ethereum's Steep Path Back to Its Record
Ethereum, trading at $2,470, needs a 100% gain to return to its prior high, a bigger hurdle than Lee's stock-market call alone would suggest.
Wall Street's Blockchain Embrace Feeds Bitmine's Ether Bet
Lee's broader thesis rests on Wall Street's growing embrace of tokenization and stablecoins, and on leverage returning to the market after last year's reset. Bitmine's own balance sheet reflects that view: the company acquired another 27,180 ETH over the past week, lifting its holdings to 5.96 million ETH as of September 13, or roughly 4.9% of ethereum's total supply.
CLARITY Act Setback Tests the Timeline
His outlook also leaned on the CLARITY Act advancing through Congress. Yet the Senate rejected cloture on the measure by a 49-50 vote on September 15, short of the 60 votes needed to move it forward. The setback underscores how much uncertainty still surrounds Lee's 12-month call.
Sources: 24/7 Wall St., Bitcoin.com
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