Tom Lee: Bitcoin Poverty Index points …
Tom Lee: Bitcoin Poverty Index Indicates Long Term Positions Possibility
Wall Street analyst and founder of Fundstrat Global Advisors Tom Lee has developed a “reverse index” that allows investors to determine how “pathetic” bitcoin is at a certain point, depending on its price..
The Bitcoin Poverty Index (BMI) was developed as a trading tool for investors looking to exploit the volatility of bitcoin prices on exchanges to their advantage. BMI is expressed as a value from 0 to 100. When calculating it, factors such as volatility and the ratio of the number of successful trades to the total number of trades are used. When the reading falls, traders should place buy orders, says Lee..
“When the bitcoin poverty index reaches disastrous values (below 27), bitcoin shows the best performance in the 12-month period,” the analyst explained..
BMI is currently at 18.8, the absolute minimum since September 6, 2011, the report says..
“Think of this index as an indicator of how happy or saddened you will be to hold Bitcoin,” says Lee..
Although the current lows of the indicator suggest that in the short term, investors may face difficult times, opening long-term positions can be extremely successful..
“The indicator has dropped below 27 already 4 times. After that, there was not a single case when the bitcoin rate did not grow in the next 12 months, “the analyst added..
Lee’s comment follows a significant drop in bitcoin amid the announcement by the US Securities and Exchange Commission that cryptocurrency exchanges must officially register and the closure of two trading floors in Japan.
Despite the fact that bitcoin is trading 60% below December values, Lee remains optimistic and does not abandon his forecast, according to which the largest cryptocurrency will reach $ 25,000 by the end of this year..
“When BMI is at a disastrous level, future returns can be very high,” – concluded.
CEO Circle: Bitcoin’s rise confirms its status as a hedge against the collapse of traditional markets Circle payments company CEO Jeremy Aller argues that…
Reuters: Bitcoin jump to $ 5,000 caused by transactions of one trader for $ 100 million; CEO of crypto company BCB Group claims that today’s price increase…
Opinion: Within 5 years, the bitcoin rate can grow to 96 thousand dollars The company Satis Group, which is engaged in consulting in the field of ICO, believes that the rate…
Coin Metrics: Short-Term Holders Spur Bitcoin Crash The recent drop in bitcoin price was driven primarily by…
The bitcoin rate rises above $ 11,000, while analysts give optimistic forecasts Having reached a minimum at around $ 10,350 on February 18, the bitcoin rate…