Bitcoin
Tom Lee’s Bitcoin Misery Index Hits Highest Value Since 2016 in Possible Bull Signal
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Fundstrat’s Thomas Lee revealed that his “Bitcoin Misery Index” has recently hit its highest figure since June 2016, in what he suggests could be a good or a bad sign
Wall Street strategist and co-founder of Fundstrat Global Advisors Thomas Leerevealed on April 11 that his “Bitcoin Misery Index” (BMI) recently hit its highest figure since June 2016. He suggested the data could be a good or a bad sign.
The BMI — which Lee designed with the aim of informing investors of how “miserable” Bitcoin (BTC) holders are based on the coin’s price and volatility — reportedly hit a value of 89 on April 2. The Index assigns a value of 100 to positive sentiment and 0 to outright misery.
Historical BMI chart 2011-2019, with Tom Lee’s analysis. Source: Thomas Lee’s Twitter, April 11
According to Lee, the fact that Bitcoin has reported its highest reading since June 2016 provides a mixed signal. He proposed two interpretations of the index, writing that:
“Good–> Since 2011, BMI >67 only seen during $BTC bull markets. More evidence bull starting. Bad –> BMI >67 after peak, $BTC falls ~25% = Profit taking ST.”
In a further tweet in the same thread, the strategist argued that “the main takeaway is that BMI reaching 67 is further evidence the bear market for Bitcoin likely ended at $3,000.”
As Cointelegraph has previously reported, Lee — a well-known Bitcoin bull — has used the BMI as a measure of investor sentiment as well as to assess Bitcoin’s price resilience and immediate prospects since he first launched the index in March 2018.
Bitcoin is currently up half a percent on the day and is trading around $5,079 by press time, having hit a multi-month price high of over $5,420 earlier this week on April 10.
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