Tom Lee, managing accomplice at Fundstrat, expects Bitcoin to catch as much as gold now that institutional deleveraging is full.
Notably, Bitcoin has skilled a difficult 12 months to this point amid persistent macroeconomic headwinds and international uncertainty. Nevertheless, Fundstrat’s Tom Lee is optimistic that the main crypto will get well and even outpace gold, now that institutional deleveraging seems to be over.
Bitcoin Struggles Whereas Gold Shines
Particularly, in latest 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 because the Terra ecosystem collapse in June 2022. This February crash preceded an extra 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 12 months, retaliatory tariff bulletins by President Donald Trump triggered a worldwide 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 gasoline market uncertainty and immediate Bitcoin selloffs.
In the meantime, gold has been cementing its popularity as a secure haven. The dear steel has posted beneficial properties for 3 consecutive months this 12 months 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 Associate Tom Lee mentioned Bitcoin’s efficiency relative to gold.
“Now that deleveraging is finished, I believe 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 prompt that Bitcoin sometimes trails gold by a couple of months however finally surges previous it with stronger momentum 100 days later.
Lee acknowledged that Pompliano might 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 12 months for Bitcoin was due largely to deleveraging by institutional buyers, who have 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 considerations about ongoing market volatility and requested Lee whether or not latest peaks within the CBOE Volatility Index (VIX), notably the spike seen on April seventh, signaled the height of investor worry.
Lee responded that though uncertainty would possibly persist resulting from financial dangers and Fed coverage debates, the worst of the worry 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% to this point in April and is hovering across the $88,000 mark, buying and selling at $87,921. Analysts akin to Cryptollica mission additional upside, predicting Bitcoin might 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 to this point, it nonetheless boasts superior beneficial properties 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 acquire, its worth would soar to roughly $121,000, effectively 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 tip of 2024. Final month, he reiterated expectations that the asset might exceed $150,000 this 12 months.
