Wall Street analyst creates new index that tells you when to buy bitcoin; predicts bitcoin will reach $25,000 as Bitcoin Misery Index hits 5-year low
Thomas Lee, also known as Tom Lee, is one of the highly respected analysts on Wall Street. He is a co-founder and a Managing Partner and the Head of Research at Fundstrat Global Advisors. He is an accomplished Wall Street strategist with over 25 years of experience in equity research, and has been top ranked by Institutional Investor every year since 1998. He is also one of the go-to people on all things Bitcoin with great track record and accuracy. He is also one of Wall Street’s biggest bitcoin bulls on Bitcoin. Back in August 2017, he predicted bitcoin’s rally above $10,000 and declared that the digital currency would outperform equities through the end of the year. Sure enough, bitcoin rallied to a high near $19,800 in December, with its performance widely outpacing stocks.
Now he has created a new index that would help Bitcoin investors when to buy bitcoin. The index is called Bitcoin Misery Index. “When the bitcoin misery index is at ‘misery’ (below 27), bitcoin sees the best 12-month performance,” Tom Lee told CNBC in a Friday report. “A signal is generated about every year.” The bitcoin misery index is at 18.8, its lowest since Sept. 6, 2011, the report said.
The index is calculated on a scale of zero to 100 and takes into account factors such as the number of winning trades out of the total and volatility.
Tom remains bullish and also said that it stood by his prediction that bitcoin will reach $25, 000 as Bitcoin Misery Index hits 5-year low. His forecast has no impact on the current price of Bitcoin. The Bitcoin price is still down by about 6.5% lower. It is currently trading $8693.63 as of the time of writing, according to CoinDesk’s bitcoin price index