RATE Group | The Puell Multiple Is Turning Bullish on Bitcoin
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The Puell Multiple Is Turning Bullish on Bitcoin

20 Mar The Puell Multiple Is Turning Bullish on Bitcoin

Posted at 19:44h in Cryptocurrency News by

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Bitcoin’s (BTC) recent sell-off has pushed prices on the top cryptocurrency by market capitalization into a historically attractive zone, according to one indicator. 

Prices fell from $10,200 in mid-February to 12-month lows below $4,000 last week, dashing many hopes for a strong rally ahead of the May 2020 mining reward halving. 

However, with the price slide, a key indicator called the “Puell Multiple” has declined to levels suggesting the value of newly issued bitcoins on a daily basis is quite low compared to historical standards.

Put simply, this signals appears to show the cryptocurrency is now undervalued. 

The Puell Multiple is calculated by dividing the daily issuance value of bitcoins in U.S. dollar terms by the 365-day moving average of the daily issuance value. 

Daily issuance refers to new coins added to the ecosystem by miners, who receive coins as rewards for validating blocks on the blockchain. Miners usually cover mining costs by selling coins into the…

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