Tom Lee Sees 'Very Strong' September Market Rally If Fed Holds Rates – Says Bitcoin’s ‘First Leg Up’ Has Begun

In an interview with CNBC, Tom Lee said he now sees upside risk in September, despite mounting market concerns.

• According to Lee, the September 15 Fed meeting could be a “pivot point” for markets. 
• His base case is that the Fed does not hike rates, which could result in a stock market rally mid-month.
• On crypto, he said he expects institutional allocation to strengthen in the fourth quarter.

Tom Lee, Fundstrat co-founder and chairman of Bitmine Immersion Technologies (BMNR), said on Monday that the S&P 500 could surprise to the upside in September if the Federal Reserve leaves interest rates unchanged, while Bitcoin’s (BTC) recent rally could be the beginning of a much larger move.

In an interview with CNBC, Lee stated he had previously expected a roughly 10% market correction in September. According to him, there’s now a possibility that mounting concerns about the Fed, AI spending and seasonal weakness could instead fuel a rally.

“I'm actually now thinking because of all this mounting concern, the market might surprise us to the upside,” Lee said. “And I think maybe September 15th, the Fed meeting is the pivot point. If the Fed doesn't hike, which is our base case, I think actually the markets could rally very strongly.”