The Bitcoin Misery Index, or as it is being marketed, the “BMI”, was introduced on Friday, the 9th of March, by Fundstrat.
Created by Tom Lee, Fundstrat’s co-founder, the analytical tool tells its users about the possible performance of Bitcoin over the next 12 months, judging by various market conditions.
Lee, being a Wall Street analyst, has programmed the BMI to be highly efficient to the best of his abilities, and stated that it is a simple tool which calculates market risk on a scale from 0 to 100, assessing various market factors to assign the rating.
He mentioned that the lower the index rating, the best time it depicts to buy Bitcoin.
What does the bmi for bitcoin say, then?
The BMI on Friday had been running at 18.8, which Lee stated had been its lowest since September 2011, indicating that this is the best time to buy Bitcoin before it would go up in value again.
He mentioned that the last “four times” that the BMI index for Bitcoin had been below 27, he noticed that the value of Bitcoin went up 12 months later.
The time to market the BMI for Bitcoin seems to be an interesting one, since Bitcoin has seen some of its lowest lows in terms of value since the U.S. Securities and Exchange Commission (SEC) issued its statement on cryptocurrency exchanges, raising concerns and creating panic amongst the cryptocurrency community that tanked the value of almost all cryptocurrencies, and Bitcoin being the prime one out of them, took one of the biggest hits in recent times.