Fundstrat managing partner Tom Lee said crypto markets are lagging as investors chase record gold and silver prices, but expects a rebound once the precious metals rally cools.
Speaking on Power Lunch, Lee said crypto should be rising on a weaker US dollar and an easing Federal Reserve, but remains overshadowed by strong flows into traditional safe havens.
“Because when gold and silver take a break, then and in the past, that would lead to a Bitcoin and Ethereum surge afterwards,”
Lee said.
Gold hit a record $5,100 on Monday after gaining 17.5% year to date, while silver surged to $110, up 57%, driven by geopolitical tensions, tariff risks and dollar weakness.
Lee said the crypto market is still feeling the effects of an October deleveraging event that “crippled many key players,” leaving the industry “limping along” despite improving fundamentals.
“Bitcoin has fallen about 30% from its October peak and is struggling to regain momentum above $95,000, as precious metals have sucked a lot of the oxygen out of the room,”
Lee said.
However, CryptoQuant analyst GugaOnChain warned that Bitcoin needs risk appetite rather than fear to benefit from dollar weakness, noting that investors still favour gold during periods of panic.
At the time of reporting, Bitcoin price was $88,402.63.