Tom Lee, managing associate at Fundstrat, expects Bitcoin to catch as much as gold now that institutional deleveraging is full.
Notably, Bitcoin has skilled a difficult yr thus far amid persistent macroeconomic headwinds and world uncertainty. Nonetheless, Fundstrat’s Tom Lee is optimistic that the main crypto will recuperate and even outpace gold, now that institutional deleveraging seems to be over.
Bitcoin Struggles Whereas Gold Shines
Particularly, in current months, Bitcoin has lagged behind gold. The asset noticed a steep decline of 17.66% in February 2025, marking its worst month-to-month drop for the reason that Terra ecosystem collapse in June 2022. This February crash preceded an additional 2% dip in March. As of April 2025, Bitcoin is down 5.29% year-to-date.
Geopolitical developments have taken a toll on investor sentiment. Earlier within the yr, retaliatory tariff bulletins by President Donald Trump triggered a world inventory market sell-off, which spilled over into the crypto market.
Though Trump later paused these tariffs for 90 days, the continuing U.S.-China commerce tensions proceed to gas market uncertainty and immediate Bitcoin selloffs.
In the meantime, gold has been cementing its fame as a secure haven. The valuable steel has posted positive factors for 3 consecutive months this yr and has surged by 9.39% in April alone. Yr-to-date, gold has risen by a exceptional 30.28%, in stark distinction to Bitcoin’s 5.29% decline.
Tom Lee Believes Bitcoin Might Catch up
On CNBC’s Squawk Field, host Joe Kernen and Fundstrat Managing Accomplice Tom Lee mentioned Bitcoin’s efficiency relative to gold.
“Now that deleveraging is completed, I feel that bitcoin goes to catch as much as gold,” says @fundstrat. https://t.co/V5IpSCKSLw
— Squawk Field (@SquawkCNBC) April 21, 2025
Kernen highlighted a earlier dialog, with Anthony Pompliano, wherein Pompliano advised that Bitcoin sometimes trails gold by a number of months however ultimately surges previous it with stronger momentum 100 days later.
Lee acknowledged that Pompliano could have made that time and agreed with the broader concept that Bitcoin tends to rally after gold’s uptrend.
In line with Lee, the sluggish begin to the yr for Bitcoin was due largely to deleveraging by institutional traders, who had been compelled to liquidate positions, particularly over weekends. Now that this wave of deleveraging has seemingly handed, Lee believes Bitcoin is positioned to shut the hole with gold.
Lee additionally pressured Bitcoin’s long-term energy as a non-dollar asset, pointing to its earlier excessive of over $110,000. He asserted that Bitcoin has ample room to develop and will meet up with gold as investor confidence returns.
Kernen raised issues about ongoing market volatility and requested Lee whether or not current peaks within the CBOE Volatility Index (VIX), significantly the spike seen on April seventh, signaled the height of investor concern.
Lee responded that though uncertainty would possibly persist on account of financial dangers and Fed coverage debates, the worst of the concern seems to have handed. He added {that a} structural backside would possibly already be in place.
BTC Already Exhibiting Indicators of Restoration
At current, Bitcoin is exhibiting indicators of a rebound. The asset has climbed 6.54% thus far in April and is hovering across the $88,000 mark, buying and selling at $87,921. Analysts reminiscent of Cryptollica challenge additional upside, predicting Bitcoin may hit a brand new all-time excessive close to $155,000 following a breakout from a wedge formation.
Notably, whereas Bitcoin has underperformed gold in 2025 thus far, it nonetheless boasts superior positive factors over an extended interval. Since January 2024, Bitcoin has surged by 115%, considerably outperforming gold’s 57% rise throughout the identical timeframe.
Ought to Bitcoin match gold’s 30% year-to-date achieve, its value would soar to roughly $121,000, nicely above its present degree. Given this context, Tom Lee’s bullish stance stays intact.
Final December, he appropriately forecasted that Bitcoin would surpass $100,000 by the top of 2024. Final month, he reiterated expectations that the asset may exceed $150,000 this yr.
