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

Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, suggests that the current relative stagnation in the cryptocurrency market is directly attributable to the intense capital rotation into precious metals. Lee maintains a strong long-term bullish outlook for digital assets but identifies the overwhelming appeal of traditional safe-haven assets—specifically gold and silver—as the primary headwind preventing an immediate crypto breakout.

According to Lee, the recent historic run-up in metals indicates that institutional investors are prioritizing hedges against inflation and macroeconomic uncertainty. This focus diverts significant liquidity that would otherwise flow into high-growth, high-risk assets like Bitcoin (BTC).

Fundstrat’s thesis posits that this dynamic is temporary. Once the aggressive accumulation phase in precious metals concludes, and those assets enter a period of consolidation or correction, the substantial capital parked in gold and silver will seek new avenues for returns. Lee predicts that this liquidity will swiftly rotate back into the higher-beta risk-on environment, triggering a substantial crypto comeback.

Lee believes that this rotation will provide the necessary catalyst to propel Bitcoin and the wider crypto market out of its current consolidation phase, potentially leading to new all-time highs and confirming the start of the next major bull cycle.

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