Tom Lee: After precious metals rise, cryptocurrencies will follow! A "parabolic" surge is expected.

The volatility in the Japanese and US bond markets has drained global liquidity, causing cryptocurrencies to tumble in tandem. Tom Lee pointed out in an interview that after de-leveraging in the crypto market is complete, the trends of gold and tokenization will lay the long-term momentum for Bitcoin and Ethereum.
(Previous context: Tom Lee warns the market: 2026 will start with “painful decline,” but Bitcoin will rebound and hit new highs by the end of the year)
(Additional background: BitMine invests another $80 million to add 24,000 ETH! Tom Lee: Vitalik and Sam Altman will attend BitMine’s shareholder meeting)

As gold prices break new highs, approaching $5,000, Bitcoin, known as “digital gold,” has not shown a corresponding safe-haven property, leaving many investors puzzled.

Fundstrat Global Advisors research director Tom Lee explained this phenomenon in an interview, highlighting a key reason: The market is facing a historic “deleveraging” shock, and the threat of quantum computing is changing investors’ preferences for Bitcoin and Ethereum.

Capital Chain Contraction

Fundstrat founder Tom Lee recently stated that the current market is a “necessary cleansing,” aimed at forcing highly leveraged positions to exit. He pointed out that once deleveraging is complete, Bitcoin still has the potential to reach $200,000.

In response to Bitcoin’s recent underperformance as a safe haven, Tom Lee said that cryptocurrencies should follow gold’s trend, but the adjustment in capital structure has hindered the price. He highlighted two critical time points:

“First is the ‘1011’ market impact, which was the largest deleveraging event in crypto history, and its aftershocks are still felt today. Then, this week, although crypto initially stabilized, it was again affected by the Greenland Statement. This statement caused a sharp fluctuation in Japanese government bond (JGB) yields, leading to another round of leveraged capital withdrawal.”

Tom Lee emphasized that if we exclude these liquidity factors from deleveraging, the potential trend of cryptocurrencies is highly correlated with gold. The current low prices are more about technical adjustments in capital rather than a fundamental collapse.

The “Quantum Threat” to Bitcoin and Ethereum’s Rise

Regarding asset selection, Tom Lee observed subtle shifts in market narratives. He believes that the core value of cryptocurrencies in the future lies in serving as the “settlement layer” for global finance, which gives blockchain platforms with smart contract capabilities an advantage.

“This is more a story about Ethereum than just Bitcoin.”

Despite facing dual headwinds of deleveraging and technological anxiety, Tom Lee remains optimistic about Bitcoin’s long-term prospects. He believes “the story of Bitcoin is not over,” and the market is just waiting for further clarity in the regulatory environment, with institutional adoption still steadily increasing.

“I still don’t think a $200,000 Bitcoin is a crazy prediction. At current prices, it’s just a doubling.”

He cited historical data, pointing out that parabolic rises in cryptocurrencies often follow major rallies in precious metals. With gold and silver already leading the way, if historical patterns hold, cryptocurrencies could see a rebound in the coming years.