TLDR
- Fundstrat’s Tom Lee predicts crypto will surge once gold and silver’s current rally pauses, based on historical patterns
- Gold hit $5,100 and silver reached $110 on Monday, with gains of 17.5% and 57% respectively in 2026
- Bitcoin lost 30% since October peak and trades below $95,000, while Ethereum struggles below $3,000
- Lee says crypto markets still recovering from October 10 deleveraging event that hurt exchanges and market makers
- BitMine bought 20,000 ETH for $58 million Monday and recently staked 209,504 tokens worth $610 million
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Fundstrat managing partner Tom Lee told CNBC on Monday that cryptocurrency markets are being overshadowed by record prices in precious metals. He expects digital assets to catch up once gold and silver take a break from their current rallies.
BREAKING: TOM LEE: “Gold and silver are sucking oxygen out of everything.”
“As long as gold and silver are rising then there’s a FOMO into buying that instead of crypto.”
“When gold and silver take a break then that would lead to a Bitcoin $BTC and Ethereum $ETH surge… pic.twitter.com/yr0MO5SJMU
— SwanDesk (@SwanDesk) January 27, 2026
Lee explained that crypto should be rising due to a weaker dollar and Federal Reserve easing. The industry lacks leverage because it delevered after recent events.
“As long as gold and silver are rising, then there’s a FOMO into buying that instead of crypto,” Lee said. He added that when precious metals pause, Bitcoin and Ethereum typically surge afterward based on past patterns.
Gold prices reached an all-time high of $5,100 on Monday. The precious metal gained 17.5% since the start of 2026.
Silver hit $110 at the same time. It jumped 57% so far this year.
Market observers link the precious metals surge to geopolitical tensions and trade tariff threats. US dollar weakness also pushed investors toward safe-haven assets.
October Crash Still Affecting Markets
Lee said markets continue feeling effects from the October 10 deleveraging event. The crash “crippled many key players in the industry,” including exchanges and market makers.
The industry is “limping along, but the fundamentals have improved a lot,” according to Lee. Bitcoin has lost 30% of its value since its October peak.
The largest cryptocurrency struggled to gain momentum above $95,000. It dropped back to $86,000 support on Monday.
“I think the precious metal move has sucked a lot of the oxygen out of the room,” Lee said. He believes crypto prices aren’t keeping up with fundamentals right now.
BitMine Continues Ethereum Purchases
Lee’s Ether treasury firm BitMine bought another 20,000 ETH for $58 million on Monday. Data from Lookonchain confirmed the purchase.
The company also staked 209,504 tokens worth $610 million. BitMine has added 2,218,771 ETH to its staking portfolio since launching the program.
This represents 52% of its total Ethereum reserve. The company now holds 4.2 million ETH in total.
Lee said on X that the Davos event “highlighted financial institutions are set to build on Ethereum and smart blockchains.” Ethereum traded at $2,924 on Monday.
CryptoQuant analyst GugaOnChain offered a different view on Monday. The analyst said dollar weakness doesn’t automatically mean Bitcoin will rise.
“The flight from the dollar to gold, while Bitcoin ETFs suffer massive outflows, proves that in moments of panic, the refuge is classical, not digital,” they wrote. The analyst said Bitcoin needs the dollar’s weakness to come from risk appetite rather than fear.
Bitcoin traded at $88,202 while Ethereum was at $2,924 on Monday. The total crypto market cap reached $2.99 trillion with a 1.1% increase.
