Crypto’s recent break from gold did not happen by accident. According to Tom Lee, the Chairman of Bitmine, a major market shock in October 2025 is what caused this split. He shared his views in an interview, explaining that a huge deleveraging event changed how crypto behaved compared to gold.
Before October, crypto assets had done better than gold for more than a year. Bitcoin and Ethereum moved higher as investors took more risk. At the time, many still saw Bitcoin as “digital gold.” That idea was tested only after the market crashed.
October 2025 Marked a Turning Point
Lee said October 10, 2025, became the biggest deleveraging event in crypto history. The crash wiped out almost $2 trillion from the market. In addition, Bitcoin fell about 35%, while Ethereum dropped close to 46%.
This sharp fall damaged crypto’s market system. Forced liquidations pushed prices lower at high speed. Moreover, many traders had used leverage, and when prices fell, those positions broke.
However, gold reacted very differently, because at the same time, gold rose around 10%. Investors moved toward safety as crypto prices fell. This moment caused crypto vs gold to decouple from each other for the first time in a long while.
Structural Problems Made the Crypto Crash Worse
Lee explained that the crash exposed weak points in crypto markets. The liquidity dried up fast and market makers pulled back. While automated systems could not handle the pressure.
These problems did not mean Bitcoin failed as an idea. Instead, they showed that crypto markets still need better shock protection. Compared to gold, crypto is more sensitive to panic and leverage.
Bitcoin Is Still Digital Gold, Says Lee
Despite the crypto vs gold fallout, Lee said that Bitcoin has not lost its long-term role and he still sees it as digital gold. However, he warned that the road to adoption will remain rough. Since gold has thousands of years of trust while crypto does not. Because of this, price swings in crypto will be larger and might tend to happen more often.
Why 2026 Could Matter Most for Crypto
Looking ahead, Lee believes that 2026 could become a key year for crypto. He expects more real-world use, especially from institutions. Also, blockchain settlements and financial integration will continue to grow. He made it clear that volatility will not vanish. Still, Lee believes that Bitcoin’s future depends on adoption, not short-term price moves. For now, crypto moves forward, but not without risk.
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