In the Bitcoin ecosystem, Miners are the most critical participants you cannot ignore. They are the sole source of new daily Bitcoin supply and are Structural Sellers required to pay for electricity and hardware. The Puell Multiple indicator was created to measure the selling pressure of this powerful group.
🔸 Puell Multiple compares miners current revenue against their yearly average
Puell Multiple calculated using the formula: Puell Multiple = Daily Coin Issuance Value / 365 day Moving Average of that value.
If the metric is too high 👉 Miner revenue is skyrocketing; they tend to dump aggressively to take profits.
If the metric is too low 👉 Miner revenue has plummeted; they are operating at a loss and forced to shut down rigs or sell reserves to survive.
🔸 Strategic Zones:
Green Zone Below 0.5 this is Buy Signal.
When the Puell Multiple drops into the green zone, it means miners are going through Miner Capitulation. Weak miners have gone bankrupt, and selling pressure in the market is exhausted.
History proves this is always the best long term bottom zone for accumulation.
Red Zone Above 4.0 this is Sell Signal.
When the metric hits the red zone, mining value is abnormally high. Miners will rush to sell to recoup capital and upgrade rigs.
This often signals a cycle top.
🔹 Miner flow is Primary Flow. When the producers of Bitcoin have no incentive to sell cheap anymore, the price has only one way to go Up. Be greedy when miners are fearful.
Do you know if Bitcoin miners are currently making huge profits or struggling to pay electricity bills?
News is for reference, not investment advice. Please read carefully before making a decision.
