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Bitcoin Misery Index (BMI)

Bitcoin Misery Index (BMI) Definition

The Bitcoin Misery Index (BMI) is a proprietary tool created by Fundstrat Global Advisors, a Wall Street strategy firm. It measures the momentum of Bitcoin based on its price and trading activity to provide investors with an idea of how miserable Bitcoin holders are, based on the current price level. The index ranges from 0 to 100, with a lower score indicating that Bitcoin holders are “miserable” and a higher score suggesting they are “happy”.

Bitcoin Misery Index (BMI) Key Points

  • BMI is a tool used to measure the momentum of Bitcoin.
  • It was created by Fundstrat Global Advisors.
  • The index ranges from 0 to 100, with lower scores indicating misery and higher scores indicating happiness among Bitcoin holders.
  • BMI is used as a contrarian indicator, meaning when the score is low, it’s a buying opportunity, and when it’s high, it’s a selling signal.

What is the Bitcoin Misery Index (BMI)?

The Bitcoin Misery Index (BMI) is a tool used by investors to measure the momentum of Bitcoin. It was created by Tom Lee, the co-founder of Fundstrat Global Advisors. The index is calculated based on various factors such as the number of winning trades out of the total and the volatility. The index ranges from 0 to 100, with a score below 30 indicating that Bitcoin holders are “miserable” and a score above 70 suggesting they are “happy”.

Why is the Bitcoin Misery Index (BMI) important?

The BMI is important because it provides investors with a measure of how Bitcoin holders are feeling based on the current price level. This can help investors make informed decisions about when to buy or sell Bitcoin. The index is often used as a contrarian indicator, meaning when the score is low, it’s a buying opportunity, and when it’s high, it’s a selling signal.

Who uses the Bitcoin Misery Index (BMI)?

The BMI is primarily used by investors and traders who are interested in the Bitcoin market. It provides them with a measure of the market sentiment, which can be a valuable tool when making investment decisions.

When is the Bitcoin Misery Index (BMI) used?

The BMI is used whenever investors want to gauge the sentiment of the Bitcoin market. It can be particularly useful during periods of high volatility, as it can provide a measure of how Bitcoin holders are feeling based on the current price level.

How is the Bitcoin Misery Index (BMI) calculated?

The BMI is calculated based on two main factors: the number of winning trades out of the total and the volatility. The exact formula used to calculate the index is proprietary information owned by Fundstrat Global Advisors.

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