As noted by analysts in a CryptoQuant Quicktake post, the Puell BTC multiplier has recently fallen. The Puell multiplier refers to an intra-network indicator that tracks the ratio of bitcoin miners' 1-day earnings to their 365-day moving average (MA).
Miners earn income in two ways: #blockchain rewards and transaction fees. The former is what you get as a reward for adding a block to the network, and the latter is the fee you get for all the individual transactions contained in the block.
However, in the context of Puell Multiple, only the block reward is included in a miner's income. The block reward remains fixed to the value of #BTC in most cases, so the only variable associated with it is the value of the reward in US dollars.
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Thus, the indicator measures the revenue in US dollars. Thus, there is a relationship between the price of the cryptocurrency (which determines the amount of reward per block) and the Puella ratio.
If the value of this indicator is greater than 1, it means that miners have earned more than the average for the last 1 year. In this case, the price of the asset may be considered too high.
On the other hand, the indicator is below this threshold, which indicates that miners' earnings are lower than usual. Naturally, in such cases, the coin can be considered undervalued.
So, here is a chart showing the dynamics of the 7-day moving average multiple of #EarnFreeCrypto2024 over the past few years:
The chart shows that the 7-day moving average multiple of Bitcoin's value was at a relatively high level when the rally to a new all-time high occurred.
However, the value of the indicator has fallen sharply recently. At the same time, the price of cryptocurrencies is consolidating in a sideways trend.
If the price has not fallen, what has changed in the earnings of miners? As mentioned above, the reward per block almost always remains unchanged. a little more. The only exception is the "split in half" event, which occurs about 4 times a year.
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