Bitcoin In A Once-In-A-Bull Opportunity, Puell Multiple Says


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.

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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.

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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
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

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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.

Looks like the price of the coin has overall been moving sideways recently | Source: BTCUSD on TradingView

Featured
image
from
Dall-E,
CryptoQuant.com,
chart
from
TradingView.com

Go to Source
Author: Keshav Verma


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