Bitcoin[1] (BTC) “isn't broken” if it’s holding at the current price and volatility levels, Fundstrat’s Tom Lee[2] said to CNBC's "Fast Money"[3] on August 6.
In the interview, the Wall Street[4] bull referred to the current indicators of Fundstrat’s recently launched[5] Bitcoin Misery Index (BMI), which aims to inform investors of how “miserable” holders of the currency are based on its price and volatility.
According to Lee, when the index is below 27, it shows that future returns are very good, while if it surpasses 68 percent, it is “time to sell Bitcoin.” Pointing at the index’s current number of 39, Lee concluded that the momentum is “recovering,” noting
"Bitcoin isn't broken if it's holding at these levels. I think people are afraid it is going to go back down to $6,000 and never come back from those bear markets.”
Fundstrat’s head of research also pointed out the current levels of Bitcoin dominance on the crypto markets, which has surged up to around 48 percent[6] over the past several weeks after dropping to as low as 37 percent in July.
As Lee explained, the fact that major cryptocurrency keeps gaining momentum[7] in terms of market share is “actually showing the market is reacting to what's been taking place."
Lee also pointed at the recent biggest news in the industry, such as the Intercontinental Exchange’s (ICE) announcement[8] of developing a new global digital assets platform, as well as the U.S. Securities and Exchange Commission (SEC[9]) stating[10] that Bitcoin is not a security.
On Aug.
