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Gold and Silver Surge Leaves Crypto in the Shadows, Says BitMine CEO

Highlights:

  • BitMine CEO warns metals rally is pulling money away from Bitcoin and Ethereum.
  • Gold and silver surge as geopolitical tensions, tariffs, and a weak dollar boost prices.
  • BitMine expands Ethereum holdings and staking, which shows confidence despite the crypto market dip.

BitMine CEO Tom Lee highlighted the gap between digital assets and precious metals. He said investors are focusing on gold and silver, and leaving Bitcoin and Ethereum behind. In a CNBC interview on Monday, Lee explained that the rise in metals has overshadowed crypto.

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Traders are chasing gold and silver while ignoring digital currencies. He added that when metals calm down, crypto could see a strong rally. Lee also noted that as long as gold and silver rise, fear of missing out pulls money from crypto. Historically, crypto often rebounds once metals lose momentum.

Metals Rally Steals Spotlight from Crypto Recovery

Gold has surged to a record $5,100 on Monday, up 17.5% since January 1. At the same time, silver jumped to $110, rising 57%. Experts say the rally is fueled by geopolitical tensions, tariffs, and a weaker dollar. These conditions are pushing traders toward safe-haven metals instead of riskier assets like Bitcoin.

Further, Tom Lee noted:

“I think the precious metal move has sucked a lot of the oxygen out of the room…So, I think crypto prices aren’t quite keeping up with fundamentals, but as you know, when fundamentals go up and to the right, prices eventually follow.” 

The crypto market cap is $2.99 trillion, up 1.1%. Bitcoin stays below $90,000, and Ethereum trades under $3,000. Lee noted both are still recovering from the October 11 crash that hit many major players.

BitMine Boosts Ethereum Holdings and Staking Amid Market Dip

Despite Ethereum’s dip, BitMine keeps growing its holdings. The company bought 40,302 ETH, bringing total crypto and cash reserves to $12.8 billion. BitMine now holds 4.2 million ETH, showing confidence in a recovery.

Staking is key to BitMine’s plan. On Tuesday, it staked 209,504 ETH worth $610 million. Since starting staking, the firm added 2,218,771 ETH valued at $6.52 billion, making up 52% of its total Ethereum. Lee’s strategy shows optimism that fundamentals will lift prices. He still expects a tough decline in 2026, but his moves suggest he believes crypto could rebound once gold and silver slow down.

Gold Gains as Government Shutdown Risks and Fed Policies Influence Markets

The Kobeissi Letter noted on Monday that a potential government shutdown could boost the value of precious metals. Jeff Mei, chief operations officer at BTSE exchange, added that shifts in market expectations around Federal Reserve policies also play a role. He explained that with the economy growing and jobs increasing faster, markets are factoring in the chance that the Fed will maintain current interest rates.

He added that during uncertain times, money usually flows into safe-haven assets like US Treasuries and gold. But with the risk of a government shutdown and Trump’s recent Greenland tariff threats, global investors are favoring gold over Treasuries.

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