The Puell Multiple is a valuable metric that compares the daily issuance of Bitcoin (in USD) to its 365-day moving average. It’s often used to spot potential market tops and bottoms based on miner profitability, which can significantly impact Bitcoin’s price movements.
In this chart:
- The blue line represents the Puell Multiple.
- The green boxes highlight periods when the Puell Multiple dropped to the lower bound (around or below 0.4), which often signals market bottoms and strong buying opportunities.
- The red shaded area at the top marks periods where the Puell Multiple is extremely high (over 4-6), often correlating with market tops and potential sell signals.
Summary:
The Puell Multiple is nearing levels where it historically signaled buying opportunities.
Investors looking for a long-term accumulation phase might interpret the current Puell Multiple near 0.4 as a sign that Bitcoin is undervalued, or at least nearing a market bottom.
However, it’s crucial to combine this with other metrics like on-chain data, macroeconomic conditions to make well-rounded investment decisions.
Written by Amr Taha
