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Fundstrat’s Tom Lee says cryptocurrency prices have been underwhelming in recent weeks, failing to align with a series of historical bullish drivers. Tom Lee notes that the lacklustre prices are still tied to the mega October 10 crash that wiped off nearly $20 billion from the crypto market. As crypto prices tumble, market analyst Tom Lee has described the asset class as a huge disappointment. In a CNBC interview Lee noted that cryptocurrencies did not respond positively to the tailwinds that drove precious metals such as silver and gold to rally.
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For the analyst, currency debasement, geopolitical uncertainty, and central bank easing created favorable conditions for a cryptocurrency price spurt toward the end of the year. While gold and silver set new all-time highs, Bitcoin (BTC) and Ethereum (ETH) prices declined. He added that a significant number of cryptocurrency traders are ditching their crypto positions to buy precious metals. Lee described the trend as an anomaly, noting that an upswing in precious metals historically signaled an imminent price rally for crypto.
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“I think crypto has suffered and still hasn’t recovered from that October 10 deleveraging,” said Lee. Despite the negative sentiment following the October 10 event, Lee noted that cryptocurrencies made marked attempts to stage a strong recovery in early 2026. However, the market analyst noted that prices tumbled following the Trump-Greenland saga, dampening investor sentiment. Cryptocurrency prices are experiencing a downturn at the start of February.
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Bitcoin, the largest cryptocurrency, fell below $70,000 with several analysts predicting a steep decline below $50,000. Meanwhile, the Ethereum price threatens to slip below $1,500, while BNB and XRP have shed more than 10% of their market capitalization in 24 hours. Amid the decline, crypto analyst Benjamin Cowen warned that crypto prices will continue to fall in the short-term, dampening enthusiasm for a recovery. At press time, the global crypto market capitalization fell below $2.3 trillion for the first time since 2024, as daily trading volumes declined.
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Fundstrat’s Tom Lee says cryptocurrency prices have been underwhelming in recent weeks, failing to align with a series of historical bullish drivers. He notes that the lacklustre momentum is tied to the October 10 crash, which wiped out nearly $20 billion from the crypto market. Lee described the period as a “huge disappointment” for crypto assets as precious metals rallied on currency debasement and geopolitical uncertainty. He argued that while macro factors created conditions for a late-year rally, crypto prices declined instead, with Bitcoin and Ethereum leading the downside.
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Bitcoin slipped below $70,000, and analysts projected a further drop toward $50,000, while Ethereum hovered near $1,500. The broader market also saw BNB and XRP shed more than 10% in 24 hours, and the global crypto market capitalization fell below $2.3 trillion. On the institutional front, CME Group announced plans to debut Micro Bitcoin futures in May and was reportedly considering issuing its own token. Cardano’s Charles Hoskinson pledged to go all in on Cardano, while ConsenSys founder Joe Lubin argued Ethereum is a commodity, not a security.
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Tom Lee dismissed suggestions that BitMine’s $6 Billion Ether Treasury Paper Loss Will Suppress ETH Price. As February begins, sentiment remains fragile, with observers warning that further short-term declines could follow even as some investors await a potential revival driven by macro conditions and policy developments.
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