Tom Lee from Bitmine: Cryptocurrency Could Rise After Gold and Silver Slow Down

The cryptocurrency market has struggled to regain bullish momentum since the crash on October 10. Tom Lee, founder of Fundstrat and head of research, points to a recent rally in gold and silver as a major factor behind the stagnant prices of Bitcoin and Ethereum. However, he suggests that when these precious metals stabilize, cryptocurrencies may begin to surge. Meanwhile, Bitmine has significantly increased its Ethereum holdings, further indicating confidence in the crypto market.

Key Takeaways

The crypto market, particularly Bitcoin and Ethereum, has been underperforming since mid-October.
Gold and silver prices have reached record highs, impacting crypto performance.
Tom Lee predicts that if precious metals pause their rise, cryptocurrencies will likely surge.
Bitmine has staked a significant portion of its Ethereum holdings, reflecting faith in ETH's potential.

Crypto will surge if gold and silver 'take a break': Bitmine’s Tom Lee

Current Market Dynamics

Since the significant crash on October 10, the crypto market has struggled to show robust bullish sentiment. Bitcoin [BTC] has notably decoupled from gold, leading to weaker performance in 2025 and early 2026. While gold and silver reached new highs—over $5,000 and $110 respectively—Bitcoin has fallen to approximately $86,000 and might retest its recent low of $80,600 if current weakness continues.

Ethereum [ETH], on the other hand, has been trading within a narrow range of $2,800 to $3,200 since November, recently dipping back to $2,800 after Bitcoin's decline.

Tom Lee, the founder and head of research at Fundstrat, attributed the subdued crypto market to the recent liquidation cascade and the rise in precious metals prices. He stated, "The precious metals' rise has drawn a lot of interest away from crypto. As a result, crypto prices are not aligning with their underlying fundamentals. However, when the fundamentals improve, prices will inevitably follow."

Lee, who also serves as the chairman of Bitmine Immersion—recognized as the world's largest Ethereum treasury firm—explained that, "As long as gold and silver keep rising, investors are more likely to purchase these metals instead of Bitcoin. But when gold and silver stabilize, we can expect Bitcoin and Ethereum to experience a subsequent surge."

Bitmine's Significant Ethereum Holdings

In a strategic move, Bitmine has staked more than half of its Ethereum holdings, which total over 4 million ETH. Recently, the firm acquired an additional 20,000 ETH and staked $610 million worth of ETH (or 209,540 coins). This brings its total staked ETH to over 2.2 million, valued at around $6.5 billion—accounting for 52% of its overall holdings.

Fundstrat Tom Lee crypto Ethereum

Source: X/Lookonchain

Interestingly, the demand for staking Ethereum reached an all-time high, crossing 30% of the total ETH supply. Several U.S. spot ETH Exchange-Traded Funds (ETFs) are also looking to capitalize on yield from their holdings.

Furthermore, Ethereum continues to show positive fundamentals, with daily transaction counts reaching record highs and the average transaction cost across the network dropping to a competitive level.

Is ETH's Price Stuck?

Despite Ethereum's current price lagging behind, Tom Lee believes it will eventually align with its strong fundamentals. He pointed out two critical price levels to watch just before the Federal Reserve's rate decision: $2,980 and $2,850. These levels serve as significant liquidity pools for leveraged short and long positions. Historically, volatility caused by liquidity shifts often drives prices toward these critical points.

Fundstrat Tom Lee crypto

Source: Coinglass

Conclusion

In summary, while the cryptocurrency market is currently facing challenges, expert predictions indicate that a stabilization of gold and silver prices may eventually lead to a resurgence in Bitcoin and Ethereum. With Bitmine significantly increasing its Ethereum staked holdings, there remains a bullish outlook for the future of cryptocurrencies.