Fundstrat Global Advisors managing partner Tom Lee says Bitcoin and crypto asset prices are failing to reflect improving industry fundamentals.
In a new interview on CNBC’s Power Lunch, Lee says the crypto sector continues to feel the effects of a major deleveraging event that occurred on October 10th, which he says “crippled many of the key players in the industry,” including exchanges and market makers.
That sell-off was triggered by President Trump threatening new, heavy tariffs on Chinese imports, specifically targeting rare earth metal restrictions.
“So the industry is sort of limping along, but the fundamentals have improved a lot. And I think even Davos really amplified that Wall Street is now starting to view traditional finance and tokenization and blockchains as one business that’s converging.”
Despite positive crypto developments, Lee says the precious metals move has “sucked a lot of the oxygen out of the room.”
He says part of the dynamic is mechanical. As gold and silver rise, Lee says investors using margin or options allocate capacity toward metals instead of other risk assets such as large-cap technology stocks or cryptocurrencies.
He adds that historically, pauses in gold and silver rallies have preceded surges in Bitcoin (BTC) and Ethereum (ETH).
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The post Tom Lee Says Bitcoin Price Not Keeping Up With Fundamentals As Precious Metals ‘Suck the Oxygen’ Out of the Room appeared first on The Daily Hodl.
