Tom Lee has always remained optimistic about Bitcoin. True, the Tom Lee Bitcoin price target did change from $25 thousand to $20 thousand last month, but the Fundstrat co-founder is still confident. In fact, Lee remains confident because of what the Fundstrat Bitcoin Misery Index is indicating.
Fundstrat Bitcoin Misery Index: BTC is at 39%
On Monday, Tom Lee went against the Bitcoin bears, announcing that no, Bitcoin “isn’t broken,” even if it stays at the current price—which, at press time, is $7,120.73. He also said that Bitcoin is not broken if it’s holding at the current volatility levels.
But why does Tom Lee think that? Well, it boils down to what the Bitcoin Misery Index is describing.
The Fundstrat Bitcoin Misery Index
Back in March, Fundstrat launched the Bitcoin Misery Index, which is essentially a way for investors to know if holders of the coin are ‘miserable’ or not. It’s all based on volatility and price.
According to Lee, the Bitcoin Misery Index’s current number is 39, which means it is neither in ‘good’ territory nor ‘selling’ territory.
If the index falls below 27, it means future returns are good. No one has to panic (like how people do in the crypto space when prices drop). However, if the index moves past 68%, then you know that it is ‘time to sell’ the cryptocurrency.
Despite being higher than 27, Lee thinks the index shows that momentum is en route to recovery.
Others Catalysts Keeping Bitcoin Afloat
In the interview, Lee pointed out that the crypto industry has seen good things come out recently, in terms of Bitcoin. For instance, the SEC has declared Bitcoin not to be a security.
Not to mention the ICE announcing last week its intent to create an integrated virtual assets platform. Huge, considering ICE is the operator of dozens of exchanges, such as the New York Stock Exchange.
There are three things I want to ask: first, do you agree with the $20 thousand Tom Lee price target? Two: Do you believe the Fundstrat Bitcoin Misery Index? Third: Is momentum truly recovering?
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