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.”

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.