Despite recent volatility, the Puell Multiple indicator shows that the cycle is still in progress and awaiting completion.
What is the Puell Multiple Cycle?
The Puell Multiple is an on-chain metric that compares daily Bitcoin issuance (miner revenue) to its yearly average. The cycle includes four phases:
1. **Phase 1 (Capitulation)** – Oversold zone, often near market bottoms. 2. **Phase 2 (Recovery)** – Gradual increase in price and mining profitability. 3. **Phase 3 (Expansion)** – Renewed bullish sentiment with rising prices. 4. **Phase 4 (Euphoria)** – Parabolic rally, often followed by a blow-off top.
Current Situation in the Bitcoin Market
Currently, Bitcoin is stuck between Phases 3 and 4, marking the longest wait time between these phases in the history of the Puell Multiple. This does not indicate that the cycle is invalid but shows that it is developing slowly yet steadily.
Prospects and Possible Growth of Bitcoin
Analysts tracking the Puell Multiple note that the Bitcoin cycle structure is surprisingly on track. Key factors such as tightening supply, increasing institutional interest, and on-chain signals aligning with previous bull markets support the potential for significant price movement. The absence of Phase 4 thus far may actually be a bullish sign, indicating that the largest movements could be ahead.
In conclusion, the Bitcoin market remains in anticipation of the cycle's completion, with key indicators suggesting potential for significant upward movement in the future.
