- Bitcoin may be gearing up for a new rally according to the Puell Multiple indicator.
- The Puell Multiple measures the ratio between miners’ daily revenue and the 365-day moving average.
- A sharp drop in miners’ daily income leads to a decrease in the Puell Multiple indicator.
- Following the halving in April, the block reward for miners decreased from 6.25 BTC to 3.125 BTC, and the daily newly mined Bitcoin amount dropped to 450.
- According to a CryptoQuant analyst, the Puell Multiple indicator currently indicates that Bitcoin is cheap. The analyst stated that investors might interpret the decrease in Puell Multiple as the market adapting to a potential new scarcity phase and preparing for a rally.
Bitcoin Puell Multiple Indicator Suggests Potential Rally Ahead
Mining Rewards Halving Impact on Bitcoin’s Price
The recent halving event has significantly reduced miners’ rewards, leading to a decreased daily production of Bitcoin. This reduction in supply could potentially drive up the demand for Bitcoin, pushing its price higher in the market.
Market Optimism Amidst Puell Multiple’s Signal
The Puell Multiple’s signal of Bitcoin being undervalued has sparked optimism among investors. With the possibility of a new rally on the horizon, traders are carefully monitoring the market dynamics and adjusting their strategies accordingly.
Conclusion
In conclusion, the Puell Multiple indicator’s indication of Bitcoin’s affordability coupled with the recent mining reward halving sets the stage for a potential price surge. Investors are advised to stay vigilant and capitalize on the upcoming market movements.
