Tom Lee says precious metals are stealing the spotlight from crypto fundamentals.
• Bitmine continues to add to its $12.8 billion ETH holdings, amid Tom Lee’s bullish forecasts.
A parabolic surge in gold and silver prices has drawn investor attention away from strengthening fundamentals in Bitcoin (BTC) and Ethereum (ETH), according to Fundstrat co-founder Tom Lee.
The bullish analyst noted that it was “only a matter of time” before the prices of Bitcoin and Ethereum followed those of precious metals.
Lee’s comments came shortly before gold and silver experienced a sharp but brief flash crash, an episode that wiped out trillions of dollars in a matter of hours.
In a post on X on Monday, Lee said the relentless rally in precious metals was masking what he described as improving structural trends in major cryptocurrencies.
Lee added that financial institutions are increasingly positioning Ethereum as a core settlement and tokenization layer, a trend he said was highlighted during discussions in Davos in 2026.
Despite trading far below its all-time highs, Lee has remained bullish on his long-term predictions of Bitcoin and Ethereum.
Lee has predicted that Bitcoin will reach $1 million and over in the future, which in turn he sees triggering a move up to $250,000 for Ethereum.
Lee has backed his bullish view with aggressive purchases through Bitmine, a digital asset treasury firm focused on Ethereum.
Bitmine said on Monday it had purchased another $118 million worth of Ethereum, bringing its total holdings to $12.8 billion.
As of January 25th, Bitmine’s crypto holdings are comprised of 4,243,338 ETH at an average price of $2,839, marking around a $12 billion value.
Lee’s remarks were followed by a sudden and violent selloff in precious metals markets.
According to an analysis report by CCN analyst Victor Olanrewaju, the turmoil began at around 10:14 a.m. EST on Jan. 26, shortly after gold and silver reached new all-time highs.