Co-founder of Fundstrat Global Advisors and investor Thomas Lee revealed on April 11 that his “Bitcoin Misery Index” (BMI) has recently reached the highest value since June 2016.
BMI – which Lee coefficient designed to examine the degree of “unhappiness” of bitcoin holders (BTC) – reached the value of 89. The index assigns the value 100 to the highest degree of “happiness” and 0 – the total “poverty”.
Historical BMI chart with Tom Lee analysis. Source: Twitter by Thomas Lee, April 11
What does it mean?
According to Lee, the fact that bitcoin has recorded the highest reading of this type since June 2016 can be a good signal. In the next tweet in the same thread, the investor said that such BMI “is another proof that the bearish bitcoin market probably ended up at USD 3,000.”
Source: Twitter by Thomas Lee, April 11
Lee may this year return to the favor of people who invest in cryptocurrencies. Throughout 2018, he forecasted a bull market, but – as we now know – BTC steadily declined. The analyst, therefore, strongly compromised and today in the eyes of many falls out little credibly. For over 10 days on the digital currency market, however, the advantage of greenery over red can be seen. It may mean that the growths desired by Lee – and probably many other investors – have returned to this market again.