Tom Lee, the co-founder of Fundstrat Global advisors and a famous bitcoin bull, has recently revealed through social media his firm created an “altcoin correction index” indicating that the down trend in the market is “strategically positive signal.
According to Lee’s tweets, the Altcoin sell-off saw its altcoin improvement index, which hit 70% of “70% decline from the highest level of 9 months” hit a new all-time high of 97%. Its last came back in October 2014.
At the time, Lee said that the figure reached 87% and soon most of the Altcoin saw their price nearly three times in a 7-week bull run. In 2014, there were only 349 altcoins with a “real trading volume.”
In response to a reply questioning whether the index wrongly implied the total number of altcoins hasn’t changed throughout time, Lee revealed it’s based on an index that tracks around 700 liquid altcoins.
In response to a questioning whether the index incorrectly indicates that the total number of altcoins has not changed throughout time, Lee disclosed that it is based on an index that tracks approximately 700 liquid altcoins.
According to available data, there are now more than 1,500 altcoins in the market. Fundstrat’s index tracks potentially the largest market cap, with the most liquidity, often including EOS, Ethereum, bitcoin cash, XRP, Ethereum classic, Litecoin, dash, and NEO.
Lee has argued BTC may end the year “explosively higher” due to a correlation between the flagship cryptocurrency and emerging markets. The analyst has been maintaining a $25,000 bitcoin price prediction throughout the bearish trend.
The altcoin correction index isn’t the first crypto-related index Fundstrat created. Earlier this year, he created a “Bitcoin Misery Index” that was signaling it was time to buy the cryptocurrency in March.