Tom Lee, head of BitMine, says the recent rally in gold and silver has temporarily diverted capital away from cryptocurrencies. He expects Bitcoin and Ethereum to begin significant appreciation once the precious-metals rally pauses and investors reallocate funds back into crypto markets.

Market drivers

Lee identifies geopolitical tensions, a weak dollar and accommodative central bank policies as primary catalysts that could sustain demand for risk-off assets. He also cites growing institutional interest and ongoing integration of tokenization and blockchain into traditional finance as reinforcing long-term fundamentals.

Views from CryptoQuant

CryptoQuant CEO Ki Young Ju recommends viewing Bitcoin alongside gold and silver as suitable assets during "risk-off" episodes. He believes the current undervaluation of Bitcoin could present renewed opportunities once capital shifts out of precious metals.

Implications for investors

If precious metals pause and capital rotates, markets may see increased inflows into major cryptocurrencies driven by liquidity and shifting sentiment. Timing of any rotation depends on evolving macro developments and investor risk appetite rather than a predetermined schedule.

• Geopolitical tension can increase demand for perceived safe-haven assets and influence cross-market flows.
• Weak dollar often supports commodity prices while altering relative attractiveness of dollar-denominated digital assets.
• Institutional adoption and infrastructure improvements continue to underpin gradual crypto market maturation.

Market participants note that sustained strength in precious metals would likely keep some capital away from cryptocurrencies, while a meaningful pause in metals could trigger renewed reallocation into crypto. Observers stress that any shift will reflect changes in macro signals and investor preferences rather than mechanical triggers.