5 Insights: Tom Lee Says Gold & Silver Rally Could Trigger Fund Rotation into Crypto

Jakarta, Pintu News – Market analyst Tom Lee of Fundstrat Global Advisors expressed his view that the cryptocurrency market, including Bitcoin and Ethereum , is being temporarily restrained as waves of investors shift attention and capital to sharply rising gold and silver. According to Lee, the fear of missing out (FOMO) phenomenon in these precious metal assets is drawing liquidity away from crypto, but could create opportunities for capital rotation back into digital assets when the rally subsides.

This statement is important because it demonstrates a cross-asset class relationship, where gold and silver price movements are sentiment indicators that can influence the direction of the broader crypto market at the moment.

1. Precious Metals FOMO Shifts Capital away from Crypto

Tom Lee explains that the recent surge in gold and silver prices has taken center stage for retail and institutional investors. This surge has caused some capital to rotate out of cryptocurrencies, so the prices of digital assets such as Bitcoin and Ethereum do not reflect improving fundamentals.

In some periods, gold reached record prices of over USD 5,100 per ounce, while silver also showed strong increases, attracting large capital flows. Investors’ focus on precious metals as safe assets created tensile pressure on the crypto market.

Also Read: 5 Key Facts on Silver vs Gold Supply Gap and Its Impact on Crypto & Commodity Assets

2. Capital Rotation Could Happen When Metals Rally Subsides

According to Lee, as the gold and silver rally begins to cool or stabilize, capital previously shifted to precious metals could return to the cryptocurrency market. He attributes this to a historical pattern where capital rotation between asset classes often triggers new trends in digital markets after the momentum of other assets has subsided.

Lee stated that this capital shift is a normal market dynamic, where investors will balance between assets that are rising and other investment opportunities that are considered undervalued.

3. Dollar, Monetary Policy, and Crypto Relationship

Lee also highlighted that expectations of monetary policy easing and a weakening US dollar could be supportive factors for Bitcoin and Ethereum prices. In a weak dollar environment, riskier assets like crypto often regain interest as investors seek higher yields.

According to some analysts, these market movements suggest that crypto is not completely independent of macroeconomic dynamics, but digital assets could benefit from a phase where monetary policy stimulates capital flows back into riskier asset classes.

4. Impact on Bitcoin and Ethereum

Despite the overall subdued crypto market, Lee still sees a strong fundamental basis for Bitcoin (BTC) and Ethereum (ETH). Factors such as institutional adoption, technological development, and regulatory changes support the long-term prospects of these digital assets.

But the impact of gold and silver’s appeal shows that market capital does not simply move based on fundamentals alone; emotions and market sentiment play a big part in capital flows.

5. Implications for Crypto Investors

For young and novice investors, Lee’s views emphasize the importance of understanding the relationship between safe haven assets like gold and silver and the crypto market. Capital rotation between asset classes is a common phenomenon that reflects investors’ risk prioritization and return decisions.

Investors need to realize that price movements are not only influenced by innovations or fundamental news in crypto, but also by broader global sentiment, including the preference for assets as hedges.

Read More: Altcoin Price Spikes: A Seasonal Phenomenon Not to be Missed!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• NewsBTC. Tom Lee:Gold and Silver FOMO Is Setting up Next Crypto Rotation. Accessed January 28, 2026.