Strategist on wall Street and co-founder of Fundstrat Global Advisors Thomas Lee, developed the "opposite index Bitcoin." It allows investors to understand how "failed" the holders of Bitcoin (BTC) affect the current market prices, according to CNBC. A Bitcoin index called the Misery Index (BMI) and was designed as a trading tool for investors. It can be used to track volatility in BTC exchange offices.
BMI is calculated on a scale from zero to 100 taking into account such factors as volatility and the number of winning trades from the total amount. When the indicator is low, the possibility of buying at best and Vice versa.
How does Bitcoin Misery Index
"When the Bitcoin poverty index is at its lowest (below 27), Bitcoin shows the best 12-month performance," Lee explained to CNBC on Friday. "When the BMI is at the level of "poverty," future profits promise to be good," he added.
At the moment, the Bitcoin index is 18.8, which is the absolute minimum since September 6, 2011, the report says.
Lee's comment follows a significant decline in the cryptocurrency market, as a result of which BTC lost almost 27% immediately after March 5, reached a record level of 11,675 dollars.
The number of negative news has raised concerns about the cryptocurrency markets.
Tom Lee is known for his radical views at the expense of BTC. We will remind that earlier, in January of this year, Li released a forecast growth of Bitcoin in 2018. In it, he pointed out that the value of the cryptocurrency can "easily double" by the middle of the year.
CNBC reports that Lee is "the only broad-based analyst for wall street, which produces regular reports and official price target on Bitcoin."