The “bitcoin misery index” created by Wall Street strategist Thomas Lee indicates this is a good time to buy bitcoin, according to CNBC. Lee has not changed his midyear price target of $20,000 and his end year price target of $25,000 for bitcoin.
Lee, co-founder of Fundstrat Global Advisors, told CNBC’s “Fast Money” Friday that when the bitcoin misery index falls below 27, bitcoin sees its best 12-month performance. Such a signal comes about every year, the strategist said.
The last four times the index fell below 27 on the bitcoin misery index, bitcoin never failed to rise 12 months later, Lee said.
Last week was a tough one for bitcoin. A major Hong Kong exchange reported on Wednesday that some accounts might have been compromised. At the same time, the U.S. Securities and Exchange Commission increased its scrutiny of cryptocurrency wallets and exchanges. On Thursday, Japan suspended two cryptocurrency exchanges from operating for a month and called for business improvements at five other exchanges.
It was also reported Wednesday that the trustee of the now defunct Mt. Gox exchange sold about $400 million worth of bitcoin and Bitcoin Cash.
https://www.ccn.com/bitcoin-misery-index-indicates-now-is-a-good-time-to-buy/