The price of Bitcoin has once again renewed its historical high, surpassing the $108,000 range, a relevant milestone that signals the strengthening of the upward movement and the prevailing optimism in the market.
However, the Puell Multiple indicator, which measures miners' daily revenue in relation to the annual average, remains close to the discount zone, below 1.40 at the moment.
This behavior of the Puell Multiple suggests that, despite the significant price appreciation, miners' revenues have yet to follow suit - signaling that the market may be being driven by external forces, such as institutional demand, ETFs, or tightening circulating supply. The recent drop in block reward after the April 2024 Halving has also intensified this effect, reducing miners' profitability even in a rising price scenario.
Historically, when Puell Multiple is below 1.0 we associate periods of accumulation or undervaluation, where the price of Bitcoin does not yet reflect the full potential for long-term growth.
Seeing this indicator at such low levels during a new all-time high is rare - and may indicate that the market has not yet reached its full euphoric phase. There is room for expansion, both in mining revenues and in positive market sentiment.
Therefore, the current scenario represents a potential window of opportunity. The combination of a historically high price and still conservative fundamentals reinforces that the upward cycle may only be half over.
If miners' revenues rise again in line with demand, we could see new highs in the coming months.
Written by G a a h
