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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

What Does Puell Multiple Say About Current Bitcoin Bear?

Keshav Verma
Keshav Verma
1 year ago
3 mins read
Bitcoin Bear

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Puell multiple is an indicator that has historically given hints about previous Bitcoin cycles, here’s what it says about the current bear market.

Bitcoin Puell Multiple Has Been Going Up During The Last Couple Of Months

According to the latest weekly report from Glassnode, miners are currently raking in just 63% of the revenues of last year.

The “puell multiple” is a metric that measures the ratio between the current Bitcoin miner revenues, and the 365-day moving average of the same.

What this indicator tell us is how the miner revenues right now compare with the average during the last year.

When the value of the multiple is greater than 1, it means miners are earning more currently than the average for the past 365 days.

Related Reading: Quant Explains How US Stock Market Volumes Influence Bitcoin Price

On the other hand, the metric having values lesser than the threshold suggests miner incomes are lower at the moment.

Now, here is a chart that shows the trend in the Bitcoin puell multiple over the last few years:

Bitcoin Puell Multiple

Looks like the value of the metric has been showing a rise in recent weeks | Source: Glassnode's The Week Onchain - Week 40, 2022

As you can see in the above graph, the historical zones for the Bitcoin puell multiple are highlighted. It seems like during the past cycles, the indicator dipping below the 0.5 value resulted in bottom formation.

After the metric hit the low during the previous bear markets and subsequently recovered out of the zone, the crypto also observed the end of the bear and the start of a fresh bull run.

The likely reason behind this trend is that when miners reach very low revenues, they go through a capitulation phase and once it ends, the selling pressure from them subsides, thus the price observes some growth.

Related Reading: Bitcoin Price Starts Uptober With Record Open Interest Increase, BTC Rally Will Be Short lived?

It looks like back in June of this year, the metric hit a low of just 0.33, implying that miners were earning only 33% of the average for past year at that point.

Since then, however, the multiple has enjoyed an overall trend and has escaped out of the historical bottom zone as its value is now 0.63. This means that miners are under much less stress now compared to just a few months ago.

If history is anything to go by, the current uptrend in the Bitcoin puell multiple could spell the end of the bear market.

BTC Price

At the time of writing, Bitcoin’s price floats around $20k, up 4% in the past week.

Bitcoin Price Chart

The value of the crypto seems to have spiked up over the past day or so | Source: BTCUSD on TradingView
Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, Glassnode.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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