Quick Breakdown
- Tom Lee says crypto could rally once gold and silver pause after their explosive gains.
- Precious metals are absorbing investor demand amid geopolitical risk and dollar weakness.
- Analysts warn Bitcoin needs renewed risk appetite, not panic-driven capital flows.
Fundstrat managing partner Tom Lee believes cryptocurrencies are lagging their fundamentals and could see a sharp rebound once gold and silver cool off from their historic rallies.
Speaking on CNBC’s Power Lunch on Monday, Lee said crypto markets are positioned to benefit from a weaker US dollar and a more accommodative Federal Reserve. However, he noted that capital has recently flowed into precious metals instead, limiting crypto’s upside for now.
Today on @PowerLunch, @fundstrat‘s Tom Lee broke down how dollar weakness, earnings growth, and shifting macro tailwinds could shape markets ahead📈
▶️ Watch now: https://t.co/w3aoDLEv5m
— FS Insight (@fs_insight) January 26, 2026
“As long as gold and silver keep rising, investors are chasing that trade rather than crypto,” Lee said, adding that historically, Bitcoin and Ethereum tend to rally after metals pause.
Precious metals steal the spotlight
Gold surged to a new all-time high of $5,100 on Monday, up 17.5% year-to-date, while silver spiked to $110 after gaining 57% so far this year.
Market watchers attribute the sharp move to escalating geopolitical tensions, tariff threats, and continued weakness in the US dollar, all of which have pushed investors toward traditional safe-haven assets.
Lee argued that this “flight to safety” has drained momentum from digital assets, even as crypto fundamentals quietly improve in the background.
Deleveraging still weighs on crypto markets
Lee also pointed to the lingering impact of the October 10 deleveraging event, which he said severely disrupted key players across the crypto ecosystem, including exchanges and market makers.
“The industry is still limping along,”
Lee said, though he stressed that underlying fundamentals are far stronger today.
Bitcoin is down roughly 30% from its October peak and continues to struggle above the $95,000 level, sliding back to $86,000 support on Monday. Ether has also underperformed, despite growing institutional interest.
Notably, Lee’s Ethereum-focused treasury firm, BitMine, purchased an additional 20,000 ETH worth $58 million on Monday, according to blockchain analytics firm Lookonchain. Lee has projected that Ethereum could reach $20,000, highlighting the cryptocurrency’s growing role in tokenized assets.
However, not everyone agrees that dollar weakness alone will lift crypto prices. CryptoQuant analyst GugaOnChain cautioned that recent market behavior shows investors still prefer traditional assets during periods of stress.
If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
