On-chain data shows that the Bitcoin Puell Multiple has been on a decline lately, a sign that miner revenues have fallen from the baseline. Bitcoin Puell Multiple has fallen to 0.67 In a new post on X, analyst Ali Martinez talked about the latest trend in the Bitcoin Puell Multiple. The “Puell Multiple” refers to a popular on-chain indicator that tracks the ratio of daily BTC mining revenue (in USD) to its 365-day moving average (MA). Related reading: Bitcoin could be at risk of a deeper bear if this ratio compresses, says Glassnode Miners earn their income from two sources: block subsidies and transaction fees. However, in the context of the measure, only the first part of their turnover is relevant. Block subsidy is a fixed reward in BTC that miners receive when they add the next block to the chain. Usually this offsets the dominant and stable part of miners’ income. When the value of the Puell Multiple is greater than 1, this means that the network validators achieve a higher turnover from block subsidies than on average over the past year. On the other hand, the fact that the benchmark is below the line means that miners earn less than normal. Here is the chart shared by Martinez showing the trend in the Bitcoin Puell Multiple over the past ten years: As shown in the chart above, the Bitcoin Puell Multiple has recently witnessed a rapid decline that has taken its value below the 1 level. This drop in the metric is a result of the bearish price action the cryptocurrency has been experiencing. The block grant is fixed in BTC value and is also more or less fixed in time, so the daily BTC income from it is roughly constant for miners. However, the USD value of the reward depends on the spot price of the asset, which is indeed variable. The previous bull run pushed the Puell Multiple above 1, while miners’ income from block subsidies soared. Likewise, the market downturn has led to a decline in USD miners’ incomes. Today the value of the metric is 0.67, which means that the chain validators generate only 67% of the average revenue of the last 365 days. Historically, miners under intense pressure have made a bottom for Bitcoin more likely. Related Article: Bitcoin’s New ‘Line In The Sand’ Could Be $82,000, Not $56,000: Analyst As the analyst highlighted in the chart, the major bottoms since 2015 have generally formed when the Puell Multiple fell below 0.50. If the current cycle also follows a similar pattern, the miners’ pain may not be enough for a bottom. BTC Price The latest Bitcoin price recovery is holding for now as the price is still trading around $91,600. Featured image from Dall-E, Glassnode.com, chart from TradingView.com
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