Bitmine's Tom Lee Predicts Crypto Surge, Expects S&P 500 To Climb Up To Another 10%: Report

Tom Lee, chairman of Bitmine Immersion Technologies (AMEX:BMNR), anticipates a crypto rally and further gains for the S&P 500 by the end of 2025.Optimistic Despite A SlumpDuring an interview on CNBC, Lee remained positive despite a spring market slump, emphasizing that Fundstrat’s year-end S&P 500 target was set at 6,600 during April’s lows. With the index currently around 6,800, he expects a typical year-end increase of about 4%, potentially reaching over 7,000, with a possibility of a 10% rise.Lee attributes this potential growth to Federal Reserve rate cuts that began in September, a rare occurrence over the past 50 years. He also cited investor skepticism as a factor that could drive late-year market gains.Bitcoin Remains ResilientDiscussing crypto, Lee noted that the October 10 liquidation event, driven by U.S.–China tariff tensions, demonstrated Bitcoin's (CRYPTO: BTC) resilience with only a 3%–4% drop. He views bitcoin as a reliable store of value, especially given its performance during market stress.Lee sees a positive setup for crypto into year-end, with bitcoin and ether at record lows in open interest. He also mentioned traditional finance’s growing acceptance of crypto, highlighting JPMorgan’s openness to using crypto as collateral.Optimism Driven By Massive AI Investments, Dovish FedDespite the ongoing government shutdown, Lee has expressed optimism about the U.S. economy, citing massive investments in the artificial intelligence sector and the Federal Reserve's dovish stance as “powerful tailwinds” for the economy.The Fed’s nine-month pause on interest rate cuts until September kept the Institute for Supply Management (ISM) Manufacturing Purchasing Managers' Index (PMI) below 50 for 31 consecutive months.Lee has labeled the 2025 market as “the most hated V-shaped rally,” comparing the bearish sentiment to that of 2008. Despite this, he remains hopeful of the S&P 500 hitting the 7,000 mark by year-end.Moreover, institutional investors have reportedly missed out on the S&P 500 rally, with $7.4 trillion on the sidelines, suggesting that there could be “plenty left in the tank” for further growth. Benzinga Bulls And Bears: Stellantis, Papa John's, Oklo — And Trade Tensions Shake Chip Stocks Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.Photo courtesy: Shutterstock