Attention to Puell Multiple Indicator in Bitcoin: Rally May Come
According to the Puell Multiple indicator, Bitcoin may be preparing for a new rally.
Puell Multiple gives the ratio between one day's income of Bitcoin miners and its 365-day moving average.
A sharp decrease in the daily income of miners also leads to a decrease in the Puell Multiple indicator.
After the halving in April, the block reward given to miners decreased from 6.25 BTC to 3,125 BTC. The amount of Bitcoin produced daily decreased to 450.
According to a CryptoQuant analyst, the Puell Multiple indicator indicates that Bitcoin is cheap right now. “Investors may interpret the decline in Puell Multiple as the market adapting to a new period of scarcity and potentially preparing for a rally,” the analyst said.