Fundstrat’s Lee sees a crypto comeback once precious metals cool

Fundstrat managing spouse Tom Lee predicts that crypto markets volition apt drawback up erstwhile golden and metallic statesman to instrumentality a interruption from their caller rallies.

Tom Lee said connected CNBC’s Power Lunch connected Monday that crypto should beryllium going up connected a weaker dollar and an easing Federal Reserve. 

However, it doesn’t person the leverage tailwind due to the fact that the manufacture delevered, “and arsenic agelong arsenic golden and metallic are rising, past there’s a FOMO into buying that alternatively of crypto,” helium said.

“Because erstwhile golden and metallic instrumentality a break, past and successful the past, that would pb to a Bitcoin and Ethereum surge afterwards.”

Gold prices deed an all-time precocious of $5,100 connected Monday, pursuing a summation of 17.5% since the opening of the year. Silver besides skyrocketed, hitting a highest terms of $110 astatine the aforesaid clip aft gaining 57% truthful acold this year. 

Market observers person attributed the surge successful precious metals to rising geopolitical tensions, commercialized tariff threats, and US dollar weakness, driving investors to safe-haven assets. 

Tom Lee talks astir commodities and crypto connected CNBC. Source: CNBC 

October clang inactive hurting markets 

Earlier successful the interview, Lee explained that markets were inactive feeling the ripple effects of the Oct. 10 deleveraging event, which “crippled galore cardinal players successful the industry,” immoderate exchanges, and marketplace makers, truthful the manufacture is “limping along, but the fundamentals person improved a lot.” 

Bitcoin (BTC) has mislaid 30% of its worth since its October highest and is struggling to find immoderate momentum supra $95,000, having tanked backmost to enactment astatine $86,000 connected Monday. 

Related: Gold hits grounds precocious implicit $5K, further diverging from Bitcoin

“I deliberation the precious metallic determination has sucked a batch of the oxygen retired of the room,” said Lee.  

“So, I deliberation crypto prices aren’t rather keeping up with fundamentals, but arsenic you know, erstwhile fundamentals spell up and to the right, prices yet follow.” 

Meanwhile, Tom Lee’s Ether (ETH) treasury steadfast BitMine bought different 20,000 ETH for $58 cardinal connected Monday, according to Lookonchain.

The Davos lawsuit besides “highlighted fiscal institutions are acceptable to physique connected Ethereum and astute blockchains,” Lee said connected X. 

Bitcoin needs hazard appetite, not fear 

However, CryptoQuant expert “GugaOnChain” said connected Monday that dollar weakness does not automatically mean Bitcoin volition rise. 

“The formation from the dollar to gold, portion Bitcoin ETFs endure monolithic outflows, proves that successful moments of panic, the refuge is classical, not digital,” they said. 

“For BTC to thrive, the weakness of the American currency indispensable travel from hazard appetite, not from fear.”

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