Welcome to US Crypto News Morning Briefing. A critical overview of the most important trends in cryptocurrencies of the day.
Have some coffee and calm down. The market moves in a way that makes even the most experienced investors squint at the charts. Gold and silver are soaring, cryptocurrencies are volatile, and Washington’s policy strategy is creating uncertainty. But somewhere in the chaos, Tom Lee says, a turning point may be quietly taking place.
Today’s Crypto News: Tom Lee Says White House Bringing Down Midterm Victory Is Destroying Markets
Tom Lee of Fundstrat Global Advisors has expressed cautious optimism for crypto investors, arguing that the recent turmoil between Bitcoin and Ethereum may be temporary.
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Appearing on CNBC’s Squawk Box, Lee blamed Washington, D.C.’s policy strategy for the rise in gold and silver prices at the beginning of the year.
He said White House policies temporarily “hijacked” risk appetite, creating a “vortex” that pulled money away from cryptocurrencies despite strong fundamentals.
Gold rose 6.5% on the day to $4,954.99 an ounce, while silver rose 13.66% to $87.53. This is the biggest single-day gain for both metals since the 2008 financial crisis.
Lee linked this frenzy to the ill-timed deleveraging of cryptocurrencies in October 2025.
“The crypto industry has no influence at the moment,” he said. “Gold and silver performance has sucked out any risk appetite for precious metals trading.”
Mr. Lee also highlighted Washington politics as a central source of market uncertainty. As the midterm elections approach, he accused the White House of “deliberately picking winners and losers early” and holding markets “hostage” by bringing forward the agenda.
Mr. Lee warned that speculation about the next Fed chair will become more volatile and markets will test the appointee’s resolve on policy and interest rates, echoing the pattern seen with former Fed Chairs Janet Yellen and Jerome Powell.
While the consensus is that Republicans will lose the House, Lee said it could be a “positive surprise” if Republicans remain.
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Signs of crypto bottom amid gold and silver frenzy
Despite the short-term headwinds, Lee sees signs that cryptocurrencies could hit a bottom. Tom DeMark, an advisor at Fundstrat, believes that with Bitcoin above $78,000 and Ethereum approaching $2,300, a “time and price” match has been reached.
Lee added that Ethereum’s active addresses are “going parabolic” as Wall Street increasingly consolidates digital assets.
“All the ingredients are now in place for cryptocurrencies to bottom,” he said, contrasting low prices with network activity.
This view is consistent with analysts’ notes on potential capital turnover, with some highlighting gold rebounding 11% from recent lows to add $3.07 trillion and silver rising 20% to regain $800 billion.
Analyst Bull Theory compares this setup to August 2020, when gold peaked at $2,075 and Bitcoin fell 20% before rising 559% in eight months as capital returned to risk assets.
Analysts suggested a similar rotation may be underway, with the ISM Manufacturing Index at 52.6%.
“Gold is likely to top out and Bitcoin is already correcting, so we could see some rotation into risk-on assets,” they said.
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However, not all comments are bullish. Analyst Wimar.X warned that the metal’s soaring prices signaled a “systemic collapse” and mirrored the situation before the crashes of 2000, 2007 and 2019.
They argued that with the gold-to-silver ratio close to 56, financial institutions are “leaving the casino” and could portend a collapse in 2026.
However, Mr Lee stressed that the broader economic backdrop remained strong. The stock is up 1% in January, which historically correlates with the S&P’s 18% annual share price increase over the same period since 1950.
Even with the possibility of a reversal in AI and technology valuations, he sees precious metals as a “breather” that could be healthy for the market and pave the way for the next move in cryptocurrencies.
The question now is whether Washington-led flows will continue to favor the metal, or whether Bitcoin and Ethereum are poised for a rebound.
today’s chart
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The gold-to-bitcoin dominance ratio compares the market capitalization of both assets.
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Here’s a rundown of US crypto news to follow today.
