What is Puell Multiple

Puell Multiple is an indicator used to evaluate miners' profitability. It calculates the ratio between the daily coin issuance and its 365-day moving average. Since daily newly issued Bitcoins are obtained through mining, the daily coin issuance indicates miners' earnings. By analyzing miners' profitability, Puell Multiple can simultaneously reflect price movements and assist in determining market cycles.

Indicator Overview

Puell Multiple = Daily Coin Issuance / 365-day MA of Daily Coin Issuance

• Daily Coin Issuance = The market value of newly minted Bitcoins generated through mining on a daily basis (usually calculated in USD).
• 365-day MA of Daily Coin Issuance = The yearly average value of the daily market value of newly minted Bitcoins (usually calculated in USD).

Indicator Performance

Puell Multiple can be used to evaluate miners' profitability and market cycles. It is often employed to assess the macro market sentiment and provide buy/sell signals for investors.

• When Puell Multiple is low, it indicates that the market value of newly minted Bitcoins is relatively lower compared to its yearly average. The Bitcoin price is at a low point, in sync with the Puell Multiple indicator. The market is approaching its bottom and providing a buy signal.
• When Puell Multiple is high, it indicates that the market value of newly minted Bitcoins is relatively higher compared to its yearly average. The Bitcoin price is at a high point, in sync with the Puell Multiple indicator. The market is approaching its top and providing a sell signal.

Historically, the Puell Multiple between 4.0 and 8.0 represents the market top, while values below 0.6 indicate the market bottom. A Puell Multiple above 1.0 suggests miners are in a profitable state, while a value below 1.0 indicates miners face income pressure.