Fundstrat’s Tom Lee says there is “more evidence bull starting" for Bitcoin
|- Bitcoin investors are the happiest since 2016 according to the ‘Bitcoin Misery Index’ (BMI).
- Institutional investor trading volume has reached the highest in April in the last 24 hours.
Tom Lee, the founder of Fundstrat has been known to be one of the biggest Bitcoin bulls in the industry. Lee has for some time been providing valuable insight to the cryptocurrency industry using his firm’s ‘Bitcoin Misery Index’ (BMI). The BMI data is currently at a higher level since 2016. However, Lee cautions that the reading is not supposed to be used as a direct indicator of a bullish trend.
The analyst says that investors have a good feeling and could be translated to mean that a bullish breakout in Bitcoin is likely in the nearest future. He also says that the bullish breakout could precede a waterfall drop.
“The Bitcoin Misery Index reached 89 on 4/2. Highest reading since June 2016. Means good and bad. 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.”
A recent report indicated that there has been a significant change in the institutional trading volume in the last four months. In fact, April has been one of the best month. According to Lee:
“Risk markets globally have rallied YTD big time and this is a tailwind for #bitcoin $BTC. As noted previously, S&P 500 YTD is 2.5 std dev = ~ $14,000 for BTC. It’s curious that Bitcoin correlation is now negative to equities (next tweet).”
He continued with the tweet saying:
“From page 9 of @fundstrat_ken report, BTC correlation to S&P 500 has turned negative. Couple that with low volatility everywhere and It partially explains why institutions have been buying crypto recently.”
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