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Bitcoin’s market price has experienced renewed downward pressure, falling to just under $106,000 in the last 24 hours. This marks a 1.8% dip over the past day and places the asset approximately 6% below its all-time high of over $111,000 reached last month.
While the correction is not severe compared to historical volatility, it highlights ongoing uncertainty in the market as BTC consolidates near record highs without sustained upward momentum.
One metric drawing attention amid this price movement is the Puell Multiple, a tool used to evaluate whether Bitcoin is overvalued or undervalued relative to miner income.
Bitcoin Puell Multiple Suggests Miner Revenues Have Yet to Catch Up
CryptoQuant analyst Gaah highlighted that while prices recently surged above $108,000, the Puell Multiple remains below 1.40, a level typically associated with discounted or non-euphoric market phases.
This decoupling between BTC price and miner revenue offers insight into how recent gains may be more demand-driven than organically supported by on-chain mining fundamentals.
The Puell Multiple measures the daily issuance of BTC in USD terms relative to its 365-day moving average. Historically, readings below 1.0 are seen during market bottoms or accumulation phases, indicating undervaluation.
Gaah points out that current readings hovering around 1.40 suggest miner profitability is still lagging, even as the asset trades near historic highs. This pattern contrasts with previous bull cycles where high prices were often accompanied by elevated miner earnings, driven by both network activity and block rewards.
This disparity may be due in part to the April 2024 Bitcoin halving event, which reduced block rewards from 6.25 BTC to 3.125 BTC per block. While halving events typically drive price appreciation through reduced supply, they simultaneously put downward pressure on miner revenue.
In this case, despite a climb in market price, the halving’s impact continues to suppress income for miners, implying that the price increase has not yet been accompanied by the kind of broader economic expansion that would traditionally drive a full-fledged bull market.
Potential for Continued Growth as Institutional Forces Drive Demand
Gaah also points to the possibility that external factors may be playing a more dominant role in driving recent price action. These include increasing institutional inflows through spot Bitcoin ETFs, as well as a tighter circulating supply as long-term holders reduce active selling.
These forces could be supporting price without necessarily boosting miner profitability in the short term, especially if the uptick is concentrated in secondary market demand rather than new BTC issuance.
The current environment may signal a unique window for participants analyzing Bitcoin’s valuation. A high market price combined with conservative fundamentals suggests the market is not yet in a speculative excess phase.
If miner revenues eventually rise in line with growing demand, driven by either increased transaction fees or broader network usage, it could support further upside. As such, both technical and fundamental indicators may continue to evolve in the coming months, offering a clearer view of whether the current cycle has more room to run.
Featured image created with DALL-E, Chart from TradingView
Meet Samuel Edyme, Nickname – HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.
Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.
Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.
When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)
Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.
In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.
Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think’s probably unfeasible, I’ve done already a hundredfold.”
PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
