Bitcoin and Ether may stage a catch-up rally once the surge in gold and silver cools, according to Tom Lee. He spoke as precious metals outperformed digital assets during recent market stress. Lee said crypto fundamentals remain intact despite recent price weakness. He linked the divergence to deleveraging and capital rotation toward traditional safe havens.
Lee made the comments on Power Lunch, noting that digital assets usually benefit from a weaker US dollar and a Federal Reserve moving closer to easing. He said the current cycle lacks leverage support. As a result, crypto has trailed metals as investors chased momentum elsewhere.
Gold reached a record $5,100 on Monday, extending gains to about 17.5% this year. Silver climbed 57% year to date to peak at $110. Analysts tied the metals surge to geopolitical risks, tariff threats, and a weak dollar, which drew investors toward safety.
Lee noted that the crypto industry lost a key driver after broad deleveraging wiped out leverage. He dated the fallout to October 10. He said the event crippled many exchanges and market makers, reducing speculative fuel.
As metals surged, Lee informed that investor fear of missing out shifted toward gold and silver. He said capital chased visible gains in metals rather than digital assets. This rotation, he added, explained crypto’s lag without signalling weak demand.
Still, Lee framed metal strength as a leading signal for crypto. He said historical cycles show Bitcoin and Ethereum often lag when metals dominate.
Lee said past pauses in precious metals often preceded sharp rallies in Bitcoin and Ethereum. He said capital tends to rotate once crowded trades lose momentum. In his view, the current split fits earlier patterns.
He described a gradual realignment of liquidity, leverage, and sentiment after metals rallies mature. Lee said the setup mirrors prior cycles rather than signaling structural damage.
Recent performance shows the gap clearly. Gold and silver surged to records while crypto prices stalled. Lee noted that the divergence appeared before and later reversed as investor focus shifted.
Lee’s confidence in Ethereum showed through recent activity. On Monday, BitMine, linked to Lee, bought 20,000 ETH for $58 million. Lookonchain reported the purchase.
Lee also referenced discussions at the World Economic Forum. He said institutions showed growing interest in building on Ethereum and other smart contract platforms. He linked that interest to infrastructure development rather than short-term price moves.
Not all analysts shared the outlook. CryptoQuant analyst GugaOnChain cited ETF outflows as evidence that investors still favor gold during stress. They said Bitcoin needs dollar weakness driven by risk appetite, not fear.
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Tom Lee says Bitcoin and Ether have lagged as investors favored gold and silver during market stress. He links crypto weakness to industry deleveraging, not broken fundamentals. Historically, Lee notes, crypto rallies often follow pauses in metals. Investors may watch metals momentum for signs of rotation.