Still risk-off for Bitcoin, not a matter of price
- The start of this risk-off period was July 31st because Fundstrat’s proprietary Bitcoin Misery Index (BMI) fell below 66. Historically, a downturn in the BMI and a break below 66 signaled forthcoming weakness (see our report dated 7/30 –> click here for report). And this has largely played out in 2019. We are now waiting for the BMI to fall below 30 before concluding sentiment has properly reset.
- Other factors subsequently fueled the risk-off call for Fundstrat (Slide 3). Among the factors:
—August, S&P 500 rangebound and unpopular opinion is Bitcoin waiting for S&P 500 breakout;
—Sept. 19th, White House banned “vaping,” highlighting Bitcoin lacks sufficient regulatory protection;
—Sept. 25th, Bitcoin fell below its 200-day mavg, raising questions whether bull market ended;
—Oct. 23rd, Congressional testimony/hearings on Facebook is ultimately hostile to crypto and Bitcoin.
- Look for more comments and interviews by Tom Lee on Youtube as he appears on business news on a regular basis – Equity analysis, economy and crypto