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.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Market in excessive panic? MicroStrategy founder: Bitcoin has already bottomed out, and the quantum threat is just needless worry
Michael Saylor asserts that Bitcoin has already completed its bottoming process at $60k, and believes concerns about threats from quantum computers are overblown. He predicts that Bitcoin will become the core of a digital credit system in the future, and notes that the market’s selling pressure is limited, which could help drive a new bull market. Mizuho also has a positive assessment of the company’s future performance.
CryptoCity41m ago
Crypto Market Surges to $2.44T Amid Growing Momentum
The crypto market has grown, with a 1.35% increase in capitalization to $2.44T and Bitcoin and Ethereum prices rising. Major gainers include $PENGU, $HBTC, and $TSLA. DeFi TVL rose 1.27%, while NFT sales fell 4.99%. Key developments include Polymarket's stablecoin upgrade and CFTC's regulatory efforts.
BlockChainReporter1h ago
Pepe Price Holds Steady as ETF Filing Lifts Market Attention
Canary Capital’s ETF filing enhances Pepe Coin's institutional appeal, although trader participation declines, impacting derivatives activity. Price movements hinge on key levels of support and resistance as the market faces mixed sentiment.
CryptoNewsLand1h ago
BitTensor AI Token Plunges as Top Builder Departs Over Decentralization Doubts
In brief
TAO has fallen more than 18% in the last 24 hours amid a spat between the network's founder and a leading ecosystem contributor.
The subnet operator, Covenant AI, is leaving BitTensor after alleging centralized control by the project's founder, Jacob Steeves.
Steeves denied the
Decrypt2h ago
Market in excessive panic? MicroStrategy founder: Bitcoin has already bottomed out, and the quantum threat is an overblown worry
Michael Saylor asserted that Bitcoin has already finished bottoming out when it reached $60k, and he believes concerns about threats from quantum computers are exaggerated. He predicts that in the future, Bitcoin will become the core of a digital credit system, and he mentioned that selling pressure in the market is limited, which could help drive a new bull market. Mizuho also gave a positive assessment of his company’s future performance.
CryptoCity4h ago
SHIB Slumps 93% From ATH as Bulls Struggle to Regain Control
SHIB price fell 93% from its all-time high, losing most of its previous momentum.
Holder growth continues, with new wallets joining despite weak market conditions.
Bulls are struggling to regain control, but on-chain signals suggest potential long-term recovery.
Shiba Inu once captured m
CryptoNewsLand4h ago
