Fundstrat’s Tom Lee says crypto set for rebound after gold, silver rally cools

Fundstrat’s Tom Lee believes cryptocurrencies are poised for a strong rebound once the ongoing rally in gold and silver slows. Despite weak recent price action in Bitcoin and Ethereum, he argues macro conditions and improved industry fundamentals support a coming surge in digital assets.

Cryptocurrency markets may be gearing up for a sharp recovery — but only after the current investor rush into precious metals begins to fade, according to Fundstrat managing partner Tom Lee. Speaking on Monday, Lee said gold and silver’s record-breaking rally is temporarily diverting capital away from digital assets, delaying what he sees as an inevitable crypto upswing.

Gold climbed to an all-time high of $5,100, while silver surged to $110, marking gains of 17.5% and 57% respectively so far in 2026. The powerful move in metals has been driven by geopolitical tensions, trade-related uncertainties, and a weakening U.S. dollar — classic conditions that push investors toward traditional safe-haven assets.

Lee argues that the same macro backdrop should also favor cryptocurrencies. A softer dollar and expectations of Federal Reserve easing typically benefit risk assets, including Bitcoin and Ethereum. However, he says investor psychology is currently skewed.

“As long as gold and silver are rising, there’s a fear of missing out in metals instead of crypto,” Lee noted, explaining that capital is rotating into the more familiar safety trade. Historically, he added, digital assets have often staged strong rallies once precious metals pause or consolidate.

Crypto markets are also still recovering from the aftershocks of a major deleveraging event on October 10. That episode, Lee said, “crippled many key players,” including exchanges and market makers, leaving the ecosystem with reduced leverage and risk appetite. While painful, the cleanup has strengthened the industry’s foundation.

Bitcoin has fallen roughly 30% since its October peak and has struggled to hold levels above $95,000, recently revisiting support near the mid-$80,000 range. Ethereum, meanwhile, has remained below the $3,000 mark, reflecting broader hesitation across digital assets.

Despite subdued prices, Lee believes fundamentals have improved. Institutional interest in blockchain infrastructure continues to grow, particularly around Ethereum’s smart contract ecosystem. He pointed to discussions in Davos that highlighted financial institutions’ plans to build on Ethereum and related technologies.

Lee’s own firm, BitMine, underscored that conviction by purchasing an additional 20,000 ETH for $58 million on Monday. The company also staked more than 200,000 tokens, bringing its total Ethereum holdings to 4.2 million ETH, with over half deployed in staking.

Not everyone shares Lee’s optimism. Some analysts caution that dollar weakness driven by fear — rather than risk appetite — does not automatically benefit Bitcoin. Recent outflows from Bitcoin ETFs suggest that in times of panic, investors still prefer gold over digital assets.

Still, Lee’s core thesis remains: once the oxygen currently fueling the metals rally runs thin, capital could rotate back into crypto — potentially triggering a powerful catch-up move for Bitcoin, Ethereum, and the broader digital asset market.