In December last year, the value of bitcoin got to an all-time high of $20k. Earlier this year, the value dropped, and it has been a roller coaster ride ever since. The value has been unstable, as it goes up and down. The value of bitcoin even declined to as low as $6k in February this year.
But the value got back to the $9k mark later on, but it is still experiencing some ups and downs. But bitcoin is not the only cryptocurrency affected by this tide, others were also affected. While Bitcoin, as well as other digital currencies, have experienced a lot of ups and downs this year, Thomas Lee of Fundstrat believes that the worst will soon be over for bitcoin and other digital currencies.
The Recovery of Digital Currencies
Mr. Lee said that the cryptocurrency market has seen a 47 percent increase from Q1 till date. He said this is a very impressive recovery and it shows that the bear market for the digital currency is over. But that is not all as Lee has introduced the Misery Index of Bitcoin, a scale that ranges from 0 to 100 (0-most miserable and 100-least miserable) for the most liquid tokens. This Misery Index aims to measure how crypto investors feel about the price auction of Bitcoin.
The Result of the Bitcoin Misery Index
Presently, the Bitcoin Misery Index stands at 25, this means it’s still in the misery camp. That said, big financial institutions and other major investors are not buying bitcoin, they are all going for Ethereum – the second leading digital currency.
Lee said that he believes ETF for Ethereum and bitcoin issued by Coinshares are sold and bought by big institutions. Therefore, big money moves are a measure of the change in their share count. The share count of Coinshares Ethereum continues to increase but that of bitcoin has been static since January.