Lee Advises Investors to Buy Crypto Dips as Metals Market Volatility Bites

Tom Lee, Chief Investment Officer of Fundstrat, is advising investors to focus on entry opportunities rather than predicting exact market lows. At Consensus Hong Kong, he stated that recent weakness in cryptocurrency prices was due to volatility in metals markets triggering margin calls across asset classes.

Giving gold's massive price fluctuation as an example, Lee mentioned that the precious metal's market capitalization varied by trillions in a single day in January. This led to ripple effects that pressured risk assets, including cryptocurrency.

Lee believes that gold likely peaked for 2026 after outperforming Bitcoin throughout the year. He expects the cryptocurrency to outperform gold through 2026 as conditions normalize.

The strategist also shared his views on Ethereum, stating that it may need to briefly drop below $1,800 to form a complete bottom before sustained recovery begins. Citing market technician Tom DeMark's methodology, Lee pointed out that this level would create a perfected low.