Tom Lee: “Stablecoins May Be Behind Gold Rally…Tether Could Be Hidden Big Player”

Cryptocurrency industry veteran analyst Tom Lee recently appeared on CNBC, suggesting that stablecoins may be behind gold's record-breaking rally. He specifically analyzed that Tether (USDT)'s expanding supply is fueling gold demand, and may even be the largest “hidden consumer” in the current gold market.

Lee's comments came shortly after gold prices surpassed $4,100 per ounce (about 56.99 million won) for the first time ever, setting a new all-time high. He pointed out that major stablecoins, including Tether, are naturally replacing or combining with gold buyers as they establish themselves as large-scale asset storage means. “Stablecoins act as a connection point between Bitcoin and gold investors, absorbing market liquidity in between,” he explained.

As the boundaries between cryptocurrencies and traditional assets blur, the cryptocurrency derivatives market is also experiencing turmoil. According to CoinGlass, around $19.16 billion ( about 26.6324 trillion won ) worth of cryptocurrency positions were liquidated on October 10 alone, but Lee stated that the actual liquidation volume could be at least 4 times larger. He noted, “Major exchanges like certain platforms limit liquidations to 1 per second, so the actual data appears excessively reduced.”

Meanwhile, he also added an optimistic view on the recent stock market plunge. Lee predicted, “This sell-off could be a prelude to a future stock market rebound,” and “The S&P 500 index has room to rise by more than 200 points by mid-November.” He also assessed that there is still upside potential as the investment sentiment remains cautious without an overheated atmosphere.

Stablecoins emerging as a link between cryptocurrency liquidity and gold as an underdog. Tom Lee's analysis could be a signal that digital assets are evolving from simple transaction means to real asset value storage means. Over time, the role of stablecoins is expected to gradually expand.

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