Bitcoin and Ethereum may be heading for a big jump in the next few months. Tom Lee, co-founder of Fundstrat and chairman of BitMine, believes that upcoming interest rate cuts by the U.S. Federal Reserve could be a major reason for this potential rally. He expects better market liquidity and growing investor confidence to push crypto prices higher by the end of the year.

Lee explained that when the Fed cuts rates, it usually adds more money into the financial system. This makes it easier for people to invest, which can boost asset prices — including cryptocurrencies like Bitcoin and Ethereum. He compared the current market situation to what happened back in 1998, when similar rate cuts led to a strong market recovery.

Traders now expect the Fed to reduce interest rates by 0.25% soon. While a bigger cut is unlikely, even a small adjustment might be enough to spark new momentum in the crypto market. Bitcoin and Ethereum are especially sensitive to changes in monetary policy because they rely on investor confidence and global liquidity.

At the moment, Bitcoin is trading around $115,498. It has tested the $116,000 resistance level several times, while support remains close to $114,000. The Relative Strength Index (RSI) is at 51, showing a neutral market stance. If liquidity improves after the Fed’s decision, Bitcoin might break above $116,000 and head toward $118,000 or even $120,000.

Ethereum is currently priced around $4,508, after falling back from highs above $4,700 earlier this month. Its RSI is lower at 40, indicating bearish sentiment and nearing oversold levels. Key support is at $4,400, with resistance now near $4,650. Traders seem cautious and are waiting for clear signals before making big moves.

Lee sees Ethereum as more than just a digital currency. He calls it a “growth protocol,” comparing it to Wall Street in the early 1970s — a time when innovation took off after the dollar was removed from the gold standard. He believes Ethereum could see massive gains as technologies like blockchain and AI continue growing.

BitMine recently announced it holds $10.77 billion in cash and crypto assets. This includes 2.15 million ETH — around 1.8% of all Ethereum in existence. The company is betting big on Ethereum’s long-term success and is actively adding more ETH to its holdings.

Right now, the total crypto market is valued at $4.11 trillion. Bitcoin leads with 55.43% market dominance, while Ethereum holds 13.05%. Many traders are moving money into stablecoins, waiting for the Fed’s rate decision before jumping back into riskier assets like Bitcoin and Ethereum.

Overall, expectations are high. If the Fed cuts rates as predicted, it could trigger a strong rally in the crypto market — with Bitcoin and Ethereum likely to lead the charge.