Tom Lee Foresees S&P 500 Year-End ‘Melt-Up’

Tom Lee predicts the S&P 500 will rally to 7200-7300 points in December, signaling a potential market surge as quantitative tightening ends.

The anticipated liquidity increase may drive institutional buying and affect Ethereum’s ecosystem, shown by strong stablecoin volumes and app revenues.

Tom Lee Predicts Fed-Induced Market Surge by December

Traders are underestimating key factors: liquidity, capitulation selling, and timing. The halt in balance sheet contraction is significant, having been ongoing for almost three years. The expected increase in liquidity may lead to increased trading, driving stock prices up. These liquidity-driven market conditions could create substantial swings in asset values.

Institutional investors are seeing a shift in sentiment, as many fund managers grow tired of the current market and wait for January. Lee notes a rise in FOMO buying, as managers scramble to avoid falling behind their peers. This chase for performance could propel equity markets higher, aligning with Lee’s bullish view on the S&P 500.

“I am very bullish,” Tom Lee, CIO and head of research at Fundstrat Capital, stated on CNBC’s Squawk Box. He believes the S&P 500 Index could reach 7200-7300 points by year-end.

Ethereum Metrics Reveal Market and Technological Impacts

Did you know? {{The S&P 500 experiencing six consecutive six-month gains has happened only six times since 1928, highlighting the statistical rarity of such sustained growth.}}

Ethereum (ETH) shows consistent blockchain activity with current price at $2,803.34. Its market cap is $338.35 billion, holding 11.50% market dominance. Recent data reveals a -0.53% price drop over 24 hours and a 46.72% trading volume increase. ETH maintains a -4.27% decline over a week. Data from CoinMarketCap confirms these trends.

Coincu researchers highlight that the end of QT affects more than just liquidity—it marks a shift in monetary policy potentially paving the way for regulatory adjustments. Such economic changes could influence technological investment within blockchain sectors, potentially enhancing the DeFi landscape’s economic impact through liquidity surges.