Fundstrat’s Tom Lee Suggests Bitcoin Will Catch Up to Gold Now that Deleveraging Is Over

Tom Lee, managing partner at Fundstrat, expects Bitcoin to catch up to gold now that institutional deleveraging is complete.

Notably, Bitcoin has experienced a challenging year so far amid persistent macroeconomic headwinds and global uncertainty. However, Fundstrat’s Tom Lee is optimistic that the leading crypto will recover and even outpace gold, now that institutional deleveraging appears to be over.

Bitcoin Struggles While Gold Shines

Specifically, in recent months, Bitcoin has lagged behind gold. The asset saw a steep decline of 17.66% in February 2025, marking its worst monthly drop since the Terra ecosystem collapse in June 2022. This February crash preceded a further 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 in the year, retaliatory tariff announcements by President Donald Trump triggered a global stock market sell-off, which spilled over into the crypto market. 

Although Trump later paused these tariffs for 90 days, the ongoing U.S.-China trade tensions continue to fuel market uncertainty and prompt Bitcoin selloffs.

Meanwhile, gold has been cementing its reputation as a safe haven. The precious metal has posted gains for three consecutive months this year and has surged by 9.39% in April alone. Year-to-date, gold has risen by a remarkable 30.28%, in stark contrast to Bitcoin’s 5.29% decline.

Tom Lee Believes Bitcoin Could Catch up

On CNBC’s Squawk Box, host Joe Kernen and Fundstrat Managing Partner Tom Lee discussed Bitcoin’s performance relative to gold. 

“Now that deleveraging is done, I think that bitcoin is going to catch up to gold,” says @fundstrat. https://t.co/V5IpSCKSLw

— Squawk Box (@SquawkCNBC) April 21, 2025

Kernen highlighted a previous conversation, with Anthony Pompliano, in which Pompliano suggested that Bitcoin typically trails gold by a few months but eventually surges past it with stronger momentum 100 days later.

Lee acknowledged that Pompliano may have made that point and agreed with the broader idea that Bitcoin tends to rally after gold’s uptrend.

According to Lee, the sluggish start to the year for Bitcoin was due in large part to deleveraging by institutional investors, who were forced to liquidate positions, especially over weekends. Now that this wave of deleveraging has seemingly passed, Lee believes Bitcoin is positioned to close the gap with gold.

Lee also stressed Bitcoin’s long-term strength as a non-dollar asset, pointing to its previous high of over $110,000. He asserted that Bitcoin has ample room to grow and could catch up with gold as investor confidence returns.

Kernen raised concerns about ongoing market volatility and asked Lee whether recent peaks in the CBOE Volatility Index (VIX), particularly the spike seen on April 7th, signaled the peak of investor fear. 

Lee responded that although uncertainty might persist due to economic risks and Fed policy debates, the worst of the fear appears to have passed. He added that a structural bottom might already be in place.

BTC Already Showing Signs of Recovery

At present, Bitcoin is showing signs of a rebound. The asset has climbed 6.54% so far in April and is hovering around the $88,000 mark, trading at $87,921. Analysts such as Cryptollica project further upside, predicting Bitcoin could hit a new all-time high near $155,000 following a breakout from a wedge formation. 

Notably, while Bitcoin has underperformed gold in 2025 so far, it still boasts superior gains over a longer period. Since January 2024, Bitcoin has surged by 115%, significantly outperforming gold’s 57% rise during the same timeframe.

Should Bitcoin match gold’s 30% year-to-date gain, its price would soar to approximately $121,000, well above its current level. Given this context, Tom Lee’s bullish stance remains intact. 

Last December, he correctly forecasted that Bitcoin would surpass $100,000 by the end of 2024. Last month, he reiterated expectations that the asset could exceed $150,000 this year.