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This Is the Happiest Bitcoin Investors Have Been Since 2016: Tom Lee

This Is the Happiest Bitcoin Investors Have Been Since 2016: Tom Lee
Cover image via u.today
Contents

Fundstrat’s Tom Lee keeps bringing positivity to the crypto market by revealing that his ‘Bitcoin Misery Index’ (BMI) has reached its highest level since 2016. However, this shouldn’t be treated as a surefire indicator of another bullish trend.

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A new dose of happiness   

The BMI determines how Bitcoin investors feel about the market situation on a scale from 0 (the most miserable) to 100 (the happiest). On Apr. 2, when Bitcoin surged 20 percent in less than one hour, it reached a value of 89 –the highest it’s been since 2016.

This is supposed to prove that Bitcoin might record further gains in the nearest future given that a happiness level above 67 was only recorded during bull markets. On the flip side, the prescient Wall Street analyst points out that it could also precede a sharp price drop (case in point: January 2018).


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Institutions are betting on BTC  

As reported by U.Today, institutional Bitcoin trading volumes have been on the rise for four consecutive months with a huge spike in April. Lee believes that Bitcoin’s negative correlation to the S&P 500 (coupled with low volatility) could be the main reason why.

Earlier, Anthony ‘Pomp’ Pompliano claimed that there was practically zero correlation between BTC and the S&P 500.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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