Bitcoin Puell Multiple Suggests BTC Is Showing A Rare Opportunity

Source Bitcoinist

On-chain data shows the Bitcoin Puell Multiple is currently forming a pattern that has previously signaled a bullish opportunity for the asset.

Bitcoin Puell Multiple Has Plunged To Low Levels Recently

As pointed out by an analyst in a CryptoQuant Quicktake post, BTC may be showing an opportunity that only comes once in a given bull cycle. The on-chain indicator of interest here is the “Puell Multiple,” which keeps track of the ratio between the Bitcoin miner revenue and the 365-day MA of the same.

The miners earn their income through two sources, block reward and transaction fee, but in the context of the Puell Multiple, only the block reward, which happens to make up for the majority of the mining revenue, is relevant.

The block reward here naturally refers to the BTC compensation that miners receive for solving blocks on the network. A key feature of the Bitcoin blockchain is that these rewards are given out at more or less a fixed rate. Also, the scale of them remains constant, bar one exception, which will be mentioned shortly.

When the value of the Puell Multiple is greater than 1, it means the miners are earning more than the average for the past year right now. The higher the metric gets above this mark, the more motivation these chain validators have for selling, and thus, the more the coin could be considered overvalued.

On the other hand, the indicator being below this mark implies the miners are currently making less than usual, which could be a potential sign that mining is becoming unprofitable.

Now, here is a chart that shows the trend in the Bitcoin Puell Multiple over the past decade:

Bitcoin Puell Multiple

As displayed in the above graph, the Bitcoin Puell Multiple had been above the 2 mark earlier in the year, implying miners were enjoying significantly higher revenues than average.

The reason behind this income boost was the rally in the asset’s price. The USD price is the only variable attached to the block rewards, so their value naturally rises when the price witnesses a surge.

From the chart, it’s visible that the indicator has seen a notable drop during the past couple of months, which has taken its value down to 0.7. This would suggest that miners are now in distress.

The recent bearish momentum in the price is a factor, of course, but the majority of the plummet finds its roots in one event: the fourth Halving. As mentioned earlier, there is one exception where block rewards change in BTC value, and the Halving event is that.

These events, which take place every four years, permanently cut the block rewards in half and the latest such event, the fourth in the cryptocurrency’s history, occurred back on April 20th.

In the chart, the quant has marked the instances where the Puell Multiple has shown this trend in the middle of previous bull cycles. It would appear that each of these crashes in miner revenue was followed by sharp surges in the asset’s price.

Based on this pattern, the analyst believes it’s likely that Bitcoin would end up seeing the start of a bull rally within this third quarter of 2024.

BTC Price

Bitcoin has been trying to start a recovery surge out of its recent lows, but so far, the asset hasn’t been able to find too much success as it has only recovered to $57,300.

Bitcoin Price Chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
placeholder
Bitcoin 2025 Conference Day One: How Has the Crypto Market Shifted?  The Bitcoin 2025 Conference signals strong regulatory recognition of Bitcoin in the U.S., with growing speculation that the government may increase BTC holdings.
Author  TradingKey
20 hours ago
The Bitcoin 2025 Conference signals strong regulatory recognition of Bitcoin in the U.S., with growing speculation that the government may increase BTC holdings.
goTop
quote