Miner Revenue and the Puell Multiple
The Puell Multiple is an indicator that compares Bitcoin miners’ daily revenue to their average revenue over the past year. It suggests that when the multiple is above 1, miners are earning more than usual, indicating potential overvaluation. Conversely, when it’s below 1, miners are earning less, potentially signaling undervaluation.
Recent Drop in Puell Multiple
The Puell Multiple has recently fallen below 1 for the first time in over a year. This indicates that miners are currently earning less than their historical average.
Impact of Halving on Puell Multiple
The recent drop in the Puell Multiple coincides with the Bitcoin Halving event, which occurred last month. During a Halving, the block rewards for mining Bitcoin are permanently reduced by half. This reduction in block rewards has caused a decline in miner revenue, which is reflected in the drop in the Puell Multiple.
Interpretation of the Drop
Analysts believe that the drop in the Puell Multiple suggests that the market is adjusting to the new scarcity created by the Halving. This could potentially set the stage for a future rally in Bitcoin’s price.
Current Bitcoin Price
At the time of writing, Bitcoin is trading around $67,800, up 5% over the past week.
