Fundstrat managing partner Tom Lee has suggested that crypto markets may rebound once the rally in gold and silver slows. Speaking on CNBC, Lee highlighted that record highs in precious metals are currently overshadowing digital assets, but historical trends indicate a potential surge for Bitcoin and Ethereum once safe-haven buying subsides.
Precious Metals Impact on Crypto
Gold recently reached an all-time high of $5,100, up 17.5% since the start of the year, while silver hit $110, marking a 57% gain. Lee noted that investors’ FOMO into precious metals has diverted capital away from crypto, even as conditions like a weaker US dollar and a loosening Federal Reserve would typically support digital assets.
Crypto Fundamentals and Market Sentiment
Despite recent weakness, Lee emphasized that crypto fundamentals have improved, even after the October deleveraging event, which negatively affected exchanges and market makers. Bitcoin, currently trading around $86,000, has lost 30% since its October peak, while Ethereum continues to attract institutional interest, exemplified by BitMine’s $58 million purchase of 20,000 ETH.
Lee said on X;
CryptoQuant analyst insights highlight that Bitcoin’s growth depends on risk appetite rather than fear, suggesting that dollar weakness alone may not drive immediate gains.
Lee’s outlook underscores the relationship between precious metals and crypto markets, indicating that once gold and silver take a pause, Bitcoin and Ethereum could experience renewed momentum, aligning prices with improving fundamentals.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.