Tom Lee Backs Bitcoin (BTC) Over Gold (XAU) After $1 Trillion Metals Wipeout

Metals Shed $1 Trillion

Gold and silver erased close to $1 trillion in combined market value on Thursday, and Fundstrat's Tom Lee argues the same liquidity forces behind the rout could soon rotate capital toward Bitcoin (BTC). The Bitcoin (BTC) price has actually held up better than bullion, slipping only about 2.3% over the month ending October 22 while gold lost 5.5%. Silver led Thursday's decline at 5.8%, gold fell 2.8%, platinum dropped 4%, palladium slipped 3.7% and copper slid 2.8% to a five-week low, a breadth that makes this a broad commodities drawdown rather than a single-metal event. Supply estimates published by CompaniesMarketCap put gold's lost market cap at about $810 billion, with silver shedding more than $190 billion of its own. The trigger is macroeconomic rather than specific to metals. Rising oil prices have revived concerns that inflation will stay persistent, which narrows the Federal Reserve's room to cut interest rates at its next meeting. Higher yields and a firmer dollar traditionally weigh on gold, which is priced in dollars and competes with yield-bearing assets, while Bitcoin (BTC) carries no yield and responds mainly to liquidity expectations and investor appetite for risk. Lee framed the technology sell-off as finished rather than ongoing. “The End of the AI sell off is here,” he wrote, adding, “I don't think there's too much money being thrown at AI today.” In his reading, debt-market scrutiny has already restrained speculative excess while AI breakthroughs keep arriving, and easing bond yields plus a potentially more dovish Federal Reserve would act as tailwinds. His bullish list runs through Nvidia, memory chips, the Magnificent Seven, the group of largest US technology stocks whose earnings steer index sentiment, plus software and the crypto market.

Bitcoin's Quiet Outperformance

The six-month record makes the rotation case in hard numbers. Bitcoin gained 7.8% over that stretch while gold lost 13.2%, a gap of 21 percentage points in crypto's favor. The Federal Reserve's October 27-28 meeting now sits at the center of both trades, because rate expectations transmit into bond yields, the dollar and liquidity conditions across every risk asset, and markets will parse the statement for any change in the rate path after oil revived the inflation debate. COINOTAG data shows how far the metals unwind has already run. Gold (XAU) last trades at $4,024.82, down 1.79% in 24 hours, and COINOTAG's composite scoring marks $3,956.57 as the strongest support (76/100) with $4,114.47 as the strongest resistance (92/100) and a secondary ceiling at $4,050.97 (78/100). The daily RSI reads 31.7 and the MACD signal is bearish inside a confirmed downtrend. Silver (XAG) is weaker still at $54.00, down 3.83% with its RSI at 28.2, its deepest composite support at $49.79 and its strongest resistance at $56.99. Those support and resistance marks, produced by the same composite method behind our Bitcoin (BTC) technical analysis readings, show how one-sided the metals unwind currently is. Lee's thesis also filters into smaller Bitcoin-ecosystem projects marketed to investors hunting upside: the presale token Bitcoin Hyper, which is building a Layer 2 network for faster and cheaper transactions with Solana Virtual Machine compatibility, has raised $33.2 million at a token price of $0.0137, advertises 35% staking rewards and set November 26, 2026 as its planned token launch.

The Fed Holds the Swing Vote

The two positions are not opposed on the recorded facts; they split on one assumption, whether inflation cools fast enough after the October 27-28 meeting for rate cuts to return. Both sides share the mechanism, since yields, the dollar and liquidity push gold and Bitcoin in the same direction even as their six-month records diverge. If oil-driven price pressure fades and technology stocks rebound, the case for a renewed bull market across risk assets strengthens, and sentiment readings such as the fear and greed index would confirm the turn toward Bitcoin. If the Fed holds firm, both assets would likely fall together, and Lee's rebound call simply waits for easier liquidity conditions.