The article discusses the Puell Multiple, an indicator used in Bitcoin investing to assess whether Bitcoin is undervalued or overvalued compared to its historical trends. The Puell Multiple compares Bitcoin miners' daily revenue to its long-term average and identifies periods where miner profits are unusually high or low, signaling potential market tops or bottoms. The article emphasizes the current reading of the Puell Multiple, which suggests Bitcoin is in a mid-market cycle. The article advises investors to closely monitor the chart, especially as Bitcoin approaches its next halving event in 2028, which could impact miner revenues. The Puell Multiple offers insight into Bitcoin's market cycles by focusing on the supply side, making it a valuable tool for long-term investors. However, the article states that this information is for informational purposes only and should not be considered financial advice.
- Content Editor ( bitcoinmagazine.com )
- 2024-12-18
What is the Bitcoin Puell Multiple Indicator and How Does It Work?