As gold and silver continue their record-breaking run, Fundstrat’s Tom Lee believes the spotlight will soon swing back to cryptocurrencies. The veteran market analyst says Bitcoin and Ethereum could be setting up for a strong breakout once enthusiasm for precious metals begins to cool.
Speaking on CNBC’s Power Lunch, Lee explained that the recent surge in gold and silver has pulled investor attention — and capital — away from digital assets. According to him, fear of missing out (FOMO) in precious metals has temporarily drained liquidity from Bitcoin, Ethereum, and the broader crypto market.
Despite the recent weakness in crypto prices, Lee remains optimistic. He continues to hold a bullish outlook on Bitcoin, Ethereum, and other major cryptocurrencies, arguing that the current downturn is more about shifting capital flows than deteriorating fundamentals.
“Right now, precious metals are stealing the show,” Lee suggested, noting that gold and silver have hit record highs in recent sessions. As long as that rally continues, crypto may struggle to attract fresh money. But history, he says, tells a different story once metals lose momentum.
Lee pointed to past market cycles where pullbacks in gold and silver were followed by renewed strength in Bitcoin and Ethereum. In those periods, capital rotated out of metals and back into digital assets, driving prices higher. He believes a similar pattern could soon emerge.
Another key factor in Lee’s outlook is the macroeconomic environment. He expects a weaker U.S. dollar and a more accommodative stance from the Federal Reserve to provide strong tailwinds for crypto. If the Fed moves toward easing policy and the dollar softens, Lee says cryptocurrencies could finally reflect their “fundamental upside” rather than being suppressed by competing asset classes.
At the time of his comments, Bitcoin was trading near $94,000 after slipping from earlier highs this year. While the pullback has unsettled some investors, Lee views it as temporary, driven mainly by shifting interest toward precious metals rather than any structural issue within the crypto market.
Ethereum’s situation appears more mixed. The second-largest cryptocurrency has struggled to hold above the $3,000 level, keeping its near-term outlook range-bound. Still, longer-term expectations remain positive. Many forecasts for 2026 cluster between $3,000 and $5,000, with potential spikes toward $6,000 or higher if network upgrades, ETF inflows, and broader market sentiment turn favorable. On the downside, failure to hold the $2,700–$2,800 support zone could open the door to a slide toward the mid-$2,000 range.
For now, Lee says patience may be key. As gold and silver eventually lose steam, he expects capital to rotate back into crypto — and that’s when Bitcoin and Ethereum could finally break out of their recent slump.
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