From the current mindset of Bitcoin holders to the difference between Ripple and Stellar, here’s a look at some of the stories breaking in the world of crypto.
Fundstrat co-founder and Wall Street analyst Tom Lee says his company’s proprietary Bitcoin Misery Index (BMI) just hit a three-year high of 89 – a sign that the price of BTC has already hit a bottom.
The BMI features a scale from 0 to 100, and is designed to offer investors a look at how “miserable” Bitcoin (BTC) holders are, based on the leading cryptocurrency’s volatility and price. Last year, Lee described the mechanics of the scale to CNBC.
“When the Bitcoin misery index is at ‘misery’ (below 27), Bitcoin sees the best 12-month performance. A signal is generated about every year. When the BMI is at a ‘misery’ level, future returns are very good.”
According to Lee, the current score of 89 has only been seen during bull markets, and “the main takeaway is that BMI reaching 67 is further evidence the bear market for Bitcoin likely ended at $3,000.” However, in the short term, the number also indicates that Bitcoin profit-takers may cause BTC to dip as much as 25% before climbing back up, which would bring the price down to about $3,743.
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.
— Thomas Lee (@fundstrat) April 11, 2019
Ripple and XRP
Ripple is highlighting the need for new cross-border payment solutions in Southeast Asia.