Bitcoin Puell Multiple Plunges, But Not Inside Bottom Zone Yet
Overview
Recent on-chain data indicates a notable decline in the Bitcoin Puell Multiple, suggesting a decrease in miner revenue relative to its historical baseline. This trend highlights the challenges faced by miners amid fluctuating market conditions.
Bitcoin Puell Multiple Decline
The Bitcoin Puell Multiple has recently dropped to a value of 0.67, as noted by analyst Ali Martinez. The Puell Multiple is an important on-chain indicator that measures the ratio between daily Bitcoin mining revenue in USD and the 365-day moving average of the same revenue.
Miners generate income through two primary sources: block subsidy and transaction fees. However, for the purposes of the Puell Multiple, only the block subsidy is considered. The block subsidy is a fixed BTC-denominated reward that miners receive when they successfully add a new block to the blockchain, typically representing the most stable portion of miner income.
When the Puell Multiple exceeds 1, it indicates that miners are earning higher revenue from the block subsidy compared to the average over the previous year. Conversely, a value below 1 signifies that miner revenues are lower than usual. The recent decline in the Puell Multiple is attributed to bearish price action in the cryptocurrency market, which has led to a decrease in the USD value of miner income.
The current value of 0.67 implies that miners are earning only 67% of the average revenue from the past year. Historically, when miners experience significant pressure, it has often coincided with market bottoms for Bitcoin. Notably, major market bottoms since 2015 have typically occurred when the Puell Multiple falls below 0.50. If this cycle follows a similar trend, it suggests that current miner challenges may not yet signal a market bottom.
Impact on the crypto market
- The decline in the Bitcoin Puell Multiple indicates reduced revenue for miners, which could affect their operational sustainability.
- A sustained low Puell Multiple may lead to further selling pressure in the market as miners adjust to decreased earnings.
- Historical patterns suggest that significant market bottoms often occur when the Puell Multiple dips below 0.50, raising questions about the current market trajectory.
- The ongoing bearish conditions might contribute to a prolonged period of miner strain, impacting overall market sentiment.
- With Bitcoin’s price still around $91,600, the market remains in a critical state, balancing between miner revenue pressures and potential recovery.
Updated: 11/28/2025, 8:32:33 AM
