The post Bitcoin In A Once-In-A-Bull Opportunity, Puell Multiple Says appeared on BitcoinEthereumNews.com.

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: The value of the metric appears to have been plunging in recent weeks | Source: CryptoQuant As displayed in…

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Filed under: News - @ July 9, 2024 9:08 pm