The mining profitability indicator Puell Multiple has entered the 'green zone' for the first time since 2022, according to data from analytics firm CryptoQuant. The current value of the indicator stands at approximately 0.6, which is below the historical norm.
What is Puell Multiple?
The Puell Multiple is calculated as the ratio of daily bitcoin issuance (in dollars) to its 365-day moving average. When the indicator drops below 1.0, it signifies that miners' current revenue is below the yearly average.
Current Value of the Indicator
The current value of Puell Multiple stands at approximately 0.6, significantly below the historical norm. Historically, the indicator entering the 'green zone' has preceded significant increases in the price of bitcoin.
Potential Market Implications
Analysts note that this is a strong signal of a potential bullish reversal in the cryptocurrency market. Experts suggest that such metrics could attract new investors and boost confidence in bitcoin. Combined with other factors, such as macroeconomic conditions and institutional interest, this could lead to a price increase in the medium term.
The Puell Multiple entering the 'green zone' may herald significant changes in the bitcoin market. It is worth closely monitoring further developments and considering other influencing factors.
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