The head of the largest Ethereum treasury company BitMine, Tom Lee, believes that cryptocurrencies will start to rise in price after the cooling of the gold and silver market. Digital assets should increase in value due to the weakening of the dollar and the easing of monetary policy by the US federal government. However, there is no momentum in the cryptocurrency market because the price of gold and silver is rising, and investors are choosing to buy precious metals instead of digital assets due to the fear of missing out on profit. When the bullish rally in the gold and silver markets stops, the price of bitcoin and ethereum will go up, as has happened in the past, Lee stated.
Tom's viewpoint is confirmed by statistics, according to which the market capitalization of stablecoins has decreased by $2.2 billion over the last 10 days. At the same time, a dramatic increase in the price of XAU and XAG has been observed, so analyst Happy Coin News, Yuri Savelyev, suggests that in January, there is a migration of capital from the cryptocurrency industry to the market of precious metals. Accordingly, after the completion of the pump of the gold and silver price, the money should return to the digital asset sector, and their price will rise due to the influx of investments. Speaking of precious metals, it is worth noting that on January 26, the price of XAU and XAG reached historical maximums. Gold rose to $5,112 per ounce, and silver reached $118. Precious metals are primarily benefiting from the strengthening geopolitical tensions around the world and the weakening of the dollar, which Lee mentioned.
