Tom Lee, managing partner at Fundstrat, told CNBC he believes Bitcoin could reach $200,000 before year‑end if the Federal Reserve cuts interest rates at its policy meeting on September 17.
Lee framed the potential move as a direct response to monetary policy, saying cryptocurrencies like Bitcoin and Ethereum are “super sensitive to monetary policy.” He called the Fed meeting an “important catalyst” that could unlock fresh liquidity and push crypto prices higher.
Bitcoin was trading a little above $112,000 at the time of reporting, after hitting an all‑time high near $124,128 last month. Lee has a history of bullish forecasts—he previously predicted Bitcoin would hit $125,000 by 2022—but has sometimes missed timing even when the long‑term trend proved correct. He also chairs BitMine Immersions, which has an Ethereum treasury strategy, a role that observers note when weighing his market commentary.
Some banks expect a material rate cut: U.K. bank Standard Chartered projected a 0.50% reduction from the current target range of 4.25%–4.50%. The Fed cut rates three times last year and those moves coincided with price bumps in risk assets, but officials have been reluctant to loosen policy again as inflation remains above the 2% goal.
Markets often react to lower interest rates in predictable ways: easier monetary policy tends to make cash less attractive and increases the appeal of risk assets as liquidity searches for higher returns. That dynamic has historically supported rallies in both stocks and cryptocurrencies, and it would likely expand flows into major tokens if a cut materializes.
Still, the outlook depends on whether the Fed actually moves. Analysts and banks have differing expectations for the size and timing of any cut, and political pressure on the central bank—highlighted recently by public criticism of Fed leadership—adds uncertainty. The Fed, however, is institutionally independent and bases decisions on macro data.
What this means for investors: Lee’s scenario would be bullish for Bitcoin, but price targets remain speculative. Investors should weigh macro drivers, market liquidity and their own risk tolerance before acting. Consider position sizing, diversification and consulting a financial advisor; past predictions show the path to lofty price targets can be volatile and lengthy.
Source: Decrypt. Read the original coverage for full details.