Now is the time to buy Bitcoin, according to a new "misery index" for the cryptocurrency created by a Wall Street strategist Thomas Lee, CNBC reports.
"When the bitcoin misery index is at 'misery' (below 27), Bitcoin sees the best 12-month performance," Fundstrat Global Advisors co-founder Thomas Lee said in a Friday report. "A signal is generated about every year."
The report said the Bitcoin misery index is currently at 18.8, its lowest since Sept. 6.
Calculated on a scale of zero to 100, the misery index is meant to advice investors when it’s the best time to buy Bitcoin. When the misery index is low, investors should buy, and vice versa. It takes into account factors such as the number of winning trades out of the total and volatility.
Lee, the only major Wall Street strategist to issue regular reports and formal price targets on Bitcoin, today maintained his mid-year Bitcoin price target of $20,000 and year-end target of $25,000.
"The BMI is telling us to keep the negative headlines in perspective," he said. "When the BMI is at a 'misery' level, future returns are very good."
Bitcoin dropped below $9,000 on Friday morning, but has now recovered to $9 052,48, according to CoinMarketCap.com.