Fundstrat’s Tom Lee Forecasts Bitcoin and Ethereum Surge After Metals Rally Peaks in 2026

When the gold rush cools, the digital gold rush heats up. That's the bold prediction from Fundstrat's Tom Lee, who sees Bitcoin and Ethereum poised for explosive growth once traditional metals lose their luster.

The Metals-to-Crypto Pivot

Lee argues institutional capital behaves like water—it flows toward the highest perceived returns. As the 2025-2026 metals rally inevitably plateaus, that tidal wave of capital needs somewhere to go. Enter crypto's most established giants.

Bitcoin's Institutional Embrace

Bitcoin isn't just a speculative asset anymore—it's becoming a core holding for forward-thinking portfolios. With clearer regulations emerging globally and major financial players building infrastructure, the path for massive capital inflow is being paved. The narrative has shifted from 'if' to 'when.'

Ethereum's Smart Contract Supremacy

While Bitcoin stores value, Ethereum creates it. The network's dominance in decentralized finance and digital infrastructure positions it as the logical beneficiary of sophisticated institutional money seeking yield and innovation exposure—not just digital scarcity.

The Timing Game

Predicting the exact peak of a metals rally is Wall Street's favorite impossible game—right up there with finding an honest banker at a yacht party. But Lee's thesis doesn't require perfect timing, just recognition of the cyclical nature of capital rotation.

When traditional safe havens start feeling crowded and returns compress, the digital frontier's siren song grows louder. The smart money won't just dip toes—it'll dive headfirst into assets with clearer growth narratives and technological tailwinds.

Lee's call represents more than just price prediction—it's a recognition that crypto's maturation has reached an inflection point where it competes directly with established asset classes for institutional attention. The coming shift won't be a trickle; it'll be a flood.

Tom Lee: Gold and Silver FOMO Is Holding Back Crypto

“Crypto doesn’t have the leverage tailwind because the industry delevered,” Lee said, adding that as long as gold and silver continue to surge, investors are chasing metals instead.

“There’s a FOMO into buying that instead of crypto,” he said. Historically, Lee argued, periods where precious metals pause have often been followed by sharp rallies in Bitcoin and Ethereum.

The divergence has been stark in recent weeks. Gold prices hit a record high of $5,100 on Monday, extending gains to roughly 17.5% since the start of the year.

Silver has moved even more aggressively, climbing 57% year-to-date to peak at $110.

Analysts have linked the surge in precious metals to heightened geopolitical tensions, trade tariff threats and sustained weakness in the US dollar, all of which have driven investors toward traditional SAFE havens.

Lee said crypto markets are still dealing with the fallout from a major deleveraging event on Oct. 10, which he described as having “crippled many key players” across exchanges and market makers.

While the sector is “limping along,” he said the underlying fundamentals have improved meaningfully since then.

Bitcoin has struggled to reflect those fundamentals. The largest cryptocurrency is down roughly 30% from its October high and has failed to regain momentum above the $95,000 level, recently sliding back toward support NEAR $86,000.

“The precious metal MOVE has sucked a lot of the oxygen out of the room,” Lee said, adding that prices are lagging fundamentals rather than signaling deeper weakness.

Tom Lee-Linked Firm Buys $58M in Ether as Institutional Interest Grows

Lee’s confidence in ethereum remains evident. On Monday, BitMine, an Ether-focused treasury firm linked to Lee, purchased another 20,000 ETH for $58 million, according to blockchain analytics firm Lookonchain.

Lee also said recent discussions at the Davos forum underscored growing interest from financial institutions in building on Ethereum and other smart contract platforms.

Not all analysts agree that dollar weakness alone will lift Bitcoin. CryptoQuant analyst GugaOnChain said recent ETF outflows show investors still favor gold during periods of stress.

“For BTC to thrive,” they said, “the weakness of the American currency must come from risk appetite, not from fear.”