BitMine Chairman Tom Lee has shared his investment thesis for potential Federal Reserve rate cuts. He has identified Bitcoin and Ethereum among the primary beneficiaries of looser monetary policy. Speaking to CNBC, Lee positioned cryptocurrencies alongside Nasdaq 100 stocks as the most promising opportunities if the central bank proceeds with anticipated rate reductions.
BitMine Chairman Tom Lee has shared his investment thesis for potential Federal Reserve rate cuts. He has identified Bitcoin and Ethereum among the primary beneficiaries of looser monetary policy. Speaking to CNBC, Lee positioned cryptocurrencies alongside Nasdaq 100 stocks as the most promising opportunities if the central bank proceeds with anticipated rate reductions.
Lee’s analysis draws from historical precedents in September 1998 and September 2024, both periods when the Federal Reserve cut rates following extended pauses. The BitMine executive, whose company operates as an Ethereum-focused MicroStrategy-style entity, expects these patterns to repeat if current rate cut expectations materialize.
Lee’s investment framework prioritizes three distinct categories based on their sensitivity to monetary policy changes. The Nasdaq 100 ranks first, driven by Magnificent Seven stocks and Artificial Intelligence sector companies that benefit from improved growth conditions under lower rates.
Monetary liquidity sensitivity forms the second tier, where and Ethereum gain advantages from global central bank easing policies. Lee characterized this category as “seasonally strong” and projected that cryptocurrencies could generate a “monster move” within the next three months if rate cuts proceed as expected.
Interest rate-sensitive assets comprise the third category, including small-cap stocks and financial sector companies that typically benefit from reduced borrowing costs. However, Lee emphasized that the first two categories might deliver superior performance during the anticipated policy shift.
The Federal Reserve faces market expectations of a 25 basis point rate cut on September 17, 2025, with CME FedWatch showing a 96.4% probability. This monetary policy adjustment would reduce borrowing costs and potentially drive capital flows toward risk assets, including cryptocurrencies.
Historical precedent supports Lee’s cryptocurrency optimism, as the 2020 rate-cutting cycle coincided with Bitcoin’s surge from approximately $7,000 to over $60,000. Lower interest rates reduce opportunity costs for holding non-yielding assets.
Lee’s positioning through BitMine aligns with growing institutional adoption of cryptocurrency treasury strategies. The company follows Strategy’s model of accumulating digital assets as treasury reserves, betting on long-term appreciation driven by monetary policy and adoption trends.
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