Last Time This Bitcoin Metric Flashed Green, Investors Had 'Outsized' Returns

Tue, 05/19/2020 - 06:10
Alex Dovbnya

The severe drop in mining revenue might mark the start of a Bitcoin bull run that could be reminiscent of its previous cycles

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On-chain research firm Glassnode has noted that Bitcoin’s Puell Multiple metric is now in the green for the first time since January 2019.

Hence, the firm states that it could be an ‘excellent period’ for investors to accumulate more BTC in order to be able to get outsized returns.

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Shedding light on compulsory sellers 

Puell Multiple, which was developed by Bitcoin analyst David Puell, is calculated by dividing the daily value issuance of BTC by its yearly moving average.

In such a way, Glassnode factors in compulsory sellers (miners who have to cover the cost of their hardware).  

As a result of the third reward cut, the daily issuance of new coins was cut in half (from 12.5 BTC to 6.25 BTC).

This has taken a significant toll on the revenue of the miners, which has plunged 48 percent, according to Blockchain data

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Bottoming out  

It is worth noting that Puell Multiple has so far managed to mark the bottom of every bear market, including 2012 and 2015. 

The metric also dipped in the green zone back in early 2019 after miners capitulated in December 2018. 

Recently, BTC also printed seven back-to-back green candles on the weekly chart, which also looks early similar to the start of the Q2 bull market.    

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at

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