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📉 Alarm in Bitcoin mining
The Puell Multiple plunges 46% and sinks into historical capitulation territory
The market cycle indicator Puell Multiple has recorded a staggering drop of -46.66%, falling to 0.40. This collapse reflects a drastic contraction in miners’ daily revenues of #bitcoin compared to their annual average, sending a clear signal of financial stress to the heart of the network.
Why is the Puell Multiple so important?
The #Puell Multiple measures the relationship between Bitcoin’s daily issuance (in USD) and its 365-day moving average. It is the ultimate thermometer of miners’ economic health:
High Zone (> 2.2): Miners are earning extraordinarily high profits. Historically, it points to market tops due to heavy selling pressure.
Low Zone (< 0.50): Miners are operating with minimal financial margins—or at a loss. With the current value at 0.40, the network has officially entered severe stress or capitulation territory.
What could happen now to miners and the price of #BTC ?
1. For Bitcoin Miners
Capitulation and machine shutdowns: Less efficient miners (with higher electricity costs or older hardware) will be forced to power down their platforms as they can’t cover operating costs.
Forced selling of reserves: To stay afloat and meet their debt and energy obligations, many mining farms will have to liquidate parts of their Bitcoin treasuries, injecting sell pressure into the market.
2. For the Bitcoin Price
Short term (Volatility or Drop): Possible forced liquidation by mining companies can keep the price under pressure or trigger downward jolts.
Medium / Long term (Bottom Zone): Historically, Puell Multiple readings around 0.30 - 0.40 have coincided with the macro turning points of Bitcoin cycles.
For long-term investors, these areas often mark historical accumulation opportunities due to the asset being undervalued
$BTC
The Puell Multiple plunges 46% and sinks into historical capitulation territory
The market cycle indicator Puell Multiple has recorded a staggering drop of -46.66%, falling to 0.40. This collapse reflects a drastic contraction in miners’ daily revenues of #bitcoin compared to their annual average, sending a clear signal of financial stress to the heart of the network.
Why is the Puell Multiple so important?
The #Puell Multiple measures the relationship between Bitcoin’s daily issuance (in USD) and its 365-day moving average. It is the ultimate thermometer of miners’ economic health:
High Zone (> 2.2): Miners are earning extraordinarily high profits. Historically, it points to market tops due to heavy selling pressure.
Low Zone (< 0.50): Miners are operating with minimal financial margins—or at a loss. With the current value at 0.40, the network has officially entered severe stress or capitulation territory.
What could happen now to miners and the price of #BTC ?
1. For Bitcoin Miners
Capitulation and machine shutdowns: Less efficient miners (with higher electricity costs or older hardware) will be forced to power down their platforms as they can’t cover operating costs.
Forced selling of reserves: To stay afloat and meet their debt and energy obligations, many mining farms will have to liquidate parts of their Bitcoin treasuries, injecting sell pressure into the market.
2. For the Bitcoin Price
Short term (Volatility or Drop): Possible forced liquidation by mining companies can keep the price under pressure or trigger downward jolts.
Medium / Long term (Bottom Zone): Historically, Puell Multiple readings around 0.30 - 0.40 have coincided with the macro turning points of Bitcoin cycles.
For long-term investors, these areas often mark historical accumulation opportunities due to the asset being undervalued
$BTC
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