While gold and silver dominate headlines with record-breaking rallies and dramatic volatility, one of Wall Street’s most vocal crypto bulls believes investors are missing the real story unfolding beneath the surface of digital assets.
Fundstrat co-founder Tom Lee argues that the explosive surge in precious metals has temporarily diverted attention away from strengthening fundamentals in Bitcoin (BTC) and Ethereum (ETH)—fundamentals he believes are quietly setting the stage for a major crypto repricing.
Precious Metals in the Spotlight, Crypto in the Shadows
Gold and silver have been on a near-vertical ascent, drawing global investor attention as traditional safe havens amid rising geopolitical tensions and macro uncertainty. According to Lee, that parabolic move has effectively overshadowed crypto’s improving structural narrative, especially for Ethereum.
“The parabolic and continued surge in gold and silver is overshadowing inherently strengthening fundamentals of crypto, particularly Ethereum and Bitcoin,” Lee wrote on X.
Yet Lee sees this imbalance as temporary. His view is simple but powerful: when fundamentals rise steadily, price eventually follows—even if markets are distracted in the short term.
Why Tom Lee Is More Bullish Than Ever on Bitcoin and Ethereum
Despite Bitcoin and Ethereum trading well below their all-time highs, Lee hasn’t backed down from his long-term outlook. In fact, he’s doubling down.
Bitcoin target: $1 million+
Ethereum target: $250,000
According to Lee, institutional conversations—particularly those taking place at Davos 2026—are increasingly framing Ethereum as the core settlement layer for tokenization, finance, and real-world assets.
Wall Street, he suggests, isn’t experimenting anymore. It’s building.
Bitmine’s $12.8 Billion Ethereum Bet
Lee’s conviction isn’t just theoretical—it’s backed by capital.
Through Bitmine, a digital asset treasury firm focused on Ethereum, Lee has continued aggressive accumulation. On Monday alone, Bitmine added $118 million worth of ETH, pushing total holdings to a staggering $12.8 billion.
As of January 25:
ETH held: 4,243,338 ETH
Average entry price: $2,839
Total value: ~ $12 billion
Lee believes Ethereum’s recent strength relative to Bitcoin reflects a growing recognition that tokenization, stablecoins, and institutional use cases are being built primarily on Ethereum.
Then Came the Flash Crash That Shook Global Markets
Shortly after Lee’s comments, markets witnessed one of the most violent moments in recent precious-metals history.
On January 26 around 10:14 a.m. EST:
Gold plunged from ~$5,110 to ~$4,650
Silver collapsed from ~$110 to ~$88
According to CCN analyst Victor Olanrewaju, the sudden move erased $1.7 trillion in value in just hours—roughly equal to Bitcoin’s entire market capitalization.
Unconfirmed reports suggested a major institutional desk in Singapore may have accidentally placed a massive market sell order instead of a limit order, overwhelming thin liquidity and detonating the crash.
Despite the chaos, prices rebounded quickly:
Gold recovered near $5,089
Silver reclaimed levels above $110
The episode served as a stark reminder: even traditional “safe havens” can break violently.
Bitcoin Faces Short-Term Pressure Despite Improving Sentiment
While long-term optimism remains intact, Bitcoin’s near-term outlook has weakened as geopolitical risks resurface.
Renewed trade tensions—sparked by U.S. President Donald Trump’s tariff threats and comments regarding Greenland and NATO allies—have pushed markets into risk-off mode.
“Cryptocurrency markets are once again spiraling into risk-off mode as global stock markets also record losses,” said Petr Kozyakov, CEO of Mercuryo.
Bitcoin dropped roughly 3%, mirroring declines across global equities.
Still, there are signs of stabilization:
The Crypto Fear & Greed Index jumped nine points to 29, exiting Extreme Fear for the first time in weeks.
Key Bitcoin Levels to Watch
According to technical analysts, Bitcoin is now at a crossroads:
Bearish scenario: Failure to reclaim $90,000 could trigger a test of $85,994
Bullish scenario: Sustained buying could push BTC toward $95,383
“The near-term battle is about stabilization,” Olanrewaju noted.
The Bigger Picture: Distraction or Opportunity?
While gold and silver grab headlines with explosive moves and flash crashes, Tom Lee believes crypto investors should look beyond the noise.
His message is clear: fundamentals are strengthening, institutions are positioning, and capital is accumulating quietly.
If history is any guide, markets don’t ignore fundamentals forever.
And when attention shifts back to crypto, Lee believes Bitcoin and Ethereum won’t just catch up—they’ll redefine the narrative entirely. 🚀