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.”



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.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

BTC/USD shoots higher following Bakkt news

Above is the 5-minute BTC/USD chart which shows the powerful surge in volume when the Bakkt announcement was made. The arrow shows the exact time of the release, prior to the story BTC/USD was trading close to 10,000.00 and bouncing off the mean value price for the day. 

More Bitcoin News

Ripple price analysis: Confluence detector shows a lack of healthy resistance and support levels

Ripple is currently trending in a flag formation and is priced at $0.259. This Thursday, the bulls kicked in after the price fell to $0.242 and took the price up to $0.264. 

More Ripple News

Cardano Foundation partners with Berlin blockchain venture studio Konfidio, market reaction muted

The Cardano Foundation revealed that they have partnered up with Berlin blockchain venture studio Konfidio. The main aim of the partnership will be to execute real-world business cases on the Cardano blockchain. According to their announcement:

More Cardano News

Ethereum: ETH/USD bear trapped below broken support range

Ethereum defended the support at $170 before a shallow recovery pulled the price above $180. ETH/USD must reclaim position in the broken support range between $190 - $200.

More Ethereum News


Bitcoin Weekly Forecast: Safe-haven or a high-yield asset? Bitcoin qualifies for both

The cryptocurrency market has been a mixed picture this week. Bitcoin attempted to settle above $12,000 practically every single day of the week...

Read the weekly forecast