Wall Street Strategist Creates “Bitcoin Misery Index”, Which Signals Its Time to Buy

Francisco Memoria
  • TA Wall Street strategist created a "Bitcoin Misery Index" that signals when to buy bitcoin
  • The index is currently at the lowest it's been since September 2011, signaling its a time to buy

Bitcoin bull Tom Lee, the only Wall Street strategist covering Bitcoin and the co-founder of Fundstrat Global Advisors, recently created a “Bitcoin Misery Index.” The index works like most sentiment indicators, and is meant to be a contrarian one. This means that when it’s low, it’s time to buy the cryptocurrency. The index ranges from 0 to 100, and is now at 18.8.

According to Tom Lee, when the misery index hits “misery” (falls below 27), bitcoin sees “the best 12-month performance.” In the past, bitcoin has experienced several bull runs after falling below the 27 mark. Its current value of 18.8 is the lowest it’s been since September 6, 2011.

The Bitcoin Misery Index takes into account several factors. Among them are the number of winning trades out of the total, and the cryptocurrency’s volatility, according to Tom Lee. He said:

“The BMI [Bitcoin Misery Index] is telling us to keep the negative headlines in perspective. When the BMI is at a 'misery' level, future returns are very good."

Tom Lee

Lee’s report and new misery index come at a rough time for bitcoin and the cryptocurrency ecosystem in general. One of the biggest cryptocurrency exchanges, Binance, just faced hacking rumors while it thwarted a ‘large scale’ theft attempt. Japan’s Financial Services Agency (FSA) suspended two cryptocurrency exchanges for one month, as the result of poor security and compliance standards.

Moreover, Mt Gox trustee Nobuaki Kobayashi revealed he has sold roughly 35,800 BTC and 38,000 BCH, which roughly equals $405 million taking into account the dates in which these coins were sold. Kobayashi is still in possession of about 160,000 BTC, and further liquidations could be coming.

In light of these events, bitcoin’s price has been declining in the past few days. At press time, the flagship cryptocurrency is down by 3 percent, and is currently trading at $8,800, according to data from CryptoCompare.

Speaking to Barron’s, Tom Lee revealed that the Mt Gox liquidation, depending on tis magnitude, could be painful in the short term, but not a deal breaker. To the Wall Street strategist, some of the money bitcoin is being sold for will end up coming back.

In his report, Lee maintained his $20,000 mid-year bitcoin price target, and his $25,000 year-end target.

Bitcoin Ransomware Attack: Google Disables Baltimore Officials’ Gmail Accounts

The Baltimore City government has been under siege since May 7, as it was hit with a ransomware attack that saw hackers demand $100,000 in bitcoin and officials refuse to pay the ransom. In a new development, Google disabled officials’ Gmail accounts being used as a turnaround.

According to The Baltimore Sun , the Baltimore City government created Gmail accounts to work during the ransomware attack, as the city’s servers have been disrupted to the point their baltimorecity.gov emails aren’t working.

Recently, however, emails sent to several of the newly created Gmail addresses returned messages claiming the “email account that you tried to reach is disabled.” It was found that Google has considered these business accounts that need to be paid, instead of free individual Gmail accounts.

James Bentley, a spokesperson for Mayor Bernard C. “Jack” Young, noted Baltimore planned to purchase a business plan from Google so the accounts could be restored. The news outlet quoted him as saying:

They disabled them because they deemed them to be business accounts. Their position is these accounts are circumventing their paid service

City Council President Brandon Scott added that meanwhile his staff was appealing the suspension with Google, although he hadn’t been briefed on the problem. A spokeswoman for Baltimore’s health department claimed she was able to see received old emails, but not send or receive new ones.

Per her words, there as no notice on why the account was disabled. On its website, Google claims it’ll suspend accounts used for sending spam, distribute malware, abuse children, violate copyright, or for other illicit purposes.

As CryptoGlobe covered, Baltimore was hit with a ransomware attack earlier this month that brought its real estate industry to a halt and crippled some of its essential systems. So much so the city’s collection and transfer of property taxes and water bills have been affected.

The hackers attacked the city’s servers with a new type of ransomware known as “Robbinhood,” and are demand a 13 BTC ($102,900) ransom to stop the whole attack. They also gave the city the option to pay 3 BTC ($23,700) to decrypt a specific system.