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The Bitcoin Misery Index (BMI) is a proprietary market indicator created by Wall Street strategist Tom Lee of Fundstrat Global Advisors. BMI is calculated on a scale of zero to 100, and takes into account factors such as volatility and the number of winning trades out of the total. It is a contrarian index which means that when the indicator is low, there is a better possibility of long-term profit. Lee has identified a misery level, below 27, which is his official buy signal. He asserts that when the BMI goes below 27, Bitcoin sees its best 12 month performance.

Because there is little official regulation of Bitcoin or cryptoasset markets and trading, there are few indicators or indexes for traders or investors to follow. Traditional indicators, such as for stock or commodity markets, don’t always apply well to crypto markets, especially since research has shown cryptoassets trade as a separate asset class non-correlated with those traditional markets. Tom Lee is one of the few Wall Street strategists that follows crypto markets.

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