Emre Yumlu 
Crypto markets have struggled to gain momentum in recent months, even as gold and silver prices continue to surge to record levels. According to Fundstrat managing partner Tom Lee, this divergence does not reflect weak fundamentals in crypto, but rather a temporary shift in investor attention toward precious metals.
Speaking in a recent television interview, Lee argued that macro conditions remain broadly supportive for digital assets. However, capital flows have been diverted elsewhere, delaying crypto’s response to improving fundamentals.
Are Precious Metals Stealing Crypto’s Spotlight?
Lee believes the sharp rally in gold and silver has reduced risk appetite for crypto assets. Under normal circumstances, a weakening U.S. dollar and expectations of a more accommodative Federal Reserve would favor Bitcoin and Ethereum. Instead, investors are chasing momentum in traditional safe-haven assets.
He points out that this pattern has appeared before. Historically, strong rallies in precious metals often precede major moves in crypto markets. Once gold and silver pause or consolidate, capital tends to rotate back into higher-beta assets such as Bitcoin and Ethereum.
Record Prices Driven by Fear and Uncertainty
Gold has climbed roughly 17.5% since the start of the year, reaching a new all-time high near $5,100. Silver has posted even stronger gains, rising about 57% to peak around $110.
Market participants attribute the rally to a combination of rising geopolitical tensions, trade-related uncertainties, and a weakening dollar. In such environments, investors often prioritize capital preservation, favoring assets with a long-standing safe-haven reputation over more volatile alternatives like crypto.
October’s Deleveraging Still Weighs on Crypto
Lee also highlighted that crypto markets are still dealing with the aftermath of the major deleveraging event that took place in October. That episode significantly impacted exchanges, market makers, and liquidity providers, leaving the industry in a fragile recovery phase.
Since its October peak, Bitcoin has lost around 30% of its value and continues to struggle to establish sustained upside above the $95,000 level, recently revisiting support zones near $86,000.
Risk Appetite Is the Missing Ingredient
Not everyone agrees that a weaker dollar alone will lift crypto prices. A CryptoQuant analyst known as GugaOnChain noted that when dollar weakness is driven by fear, investors tend to favor gold rather than digital assets.
According to this view, Bitcoin thrives in environments driven by confidence and risk-taking, not panic. Capital flowing into gold at the expense of Bitcoin ETFs suggests that fear, rather than speculative appetite, is currently dominating markets.
Is Crypto Next in Line?
Despite short-term underperformance, Lee remains constructive on crypto’s outlook. He argues that fundamentals are improving beneath the surface, and once the precious metals rally cools, crypto markets could play catch-up.
If history repeats itself, a pause in gold and silver could mark the beginning of renewed momentum for Bitcoin and Ethereum, as capital rotates back toward growth-oriented assets.
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