[DigitalToday reporter Jinju Hong] Tom Lee (톰 리), co-founder of U.S. investment research firm Fundstrat, said the cryptocurrency market is likely to rebound if the strength in gold and silver eases.

On Jan. 27 (local time), blockchain media outlet Cointelegraph reported that Lee appeared on CNBC’s Power Lunch and said the crypto market has failed to rise despite a weaker dollar and the Federal Reserve’s easier stance because leverage across the industry has shrunk sharply. He added that as long as gold and silver prices keep rising, investors’ money will inevitably shift to precious metals rather than cryptocurrencies due to FOMO.

In recent weeks, precious metals have extended a strong rally. Gold has risen 17.5 percent since the start of the year to $5,100 an ounce, setting a record high, while silver has surged 57 percent to $110. Markets are analyzing rising geopolitical tensions, threats of trade tariffs and a weaker dollar as key drivers of the gains.

Lee also pointed to a deleveraging incident that occurred on Oct. 10 last year as another factor behind weakness in the crypto market. He said the market’s recovery is being delayed because key players such as exchanges and market makers were hit hard at the time. He added that crypto fundamentals have improved significantly compared with the past.

Bitcoin has yet to reflect those improved fundamentals in its price. Bitcoin is down about 30 percent from its October high and is holding support around $86,000 after failing to break above $95,000.

Lee, by contrast, maintained a relatively optimistic view on Ethereum. BitMine, an Ethereum investment firm that Lee is involved with, has recently bought an additional $58 million worth of Ethereum. On-chain data analytics firm Lookonchain said BitMine has been steadily increasing its Ethereum holdings. Lee previously mentioned at the Davos forum that financial institutions will actively adopt Ethereum and smart blockchain-based technologies.

Some in the market also urge caution. CryptoQuant analyst GugaOnChain cited recent ETF fund flows and said investors still prefer gold over digital assets. He said that for Bitcoin to rise in earnest, dollar weakness must emerge in an environment of risk-asset preference rather than fear-driven flight to safety.