Puell Multiple is an indicator to evaluate the profitability of miners. It is calculated by comparing Bitcoin's daily newly issued token market capitalization to its 365-day moving average. Because the daily new Bitcoins in the market are obtained by miners. Therefore, the market value of newly issued Bitcoin tokens every day represents the profits of miners. Through the market's miner income, Puell Multiple can simultaneously reflect price changes, thereby assisting in judging the market cycle.

Formula specific factor

Puell Multiple = Market value of newly issued tokens every day / 365-day moving average of market value of newly issued tokens every day Value

• Daily New Issuance Token Market Cap = Market value of Bitcoins generated through mining each day (usually in USD)
• Daily New Issuance The 365-day moving average of the token market value = the annual average value of the Bitcoin market value generated through mining every day (usually calculated in US dollars)

Detailed analysis Purpose

Puell Multiple can be used to evaluate miner profitability and Bitcoin market cycles. It is often used to assess macro market cyclical conditions and provide investors with buy/sell signals.

• When the Puell Multiple value is low, miners earn less than the annual average. The price of Bitcoin is in sync with the value of this indicator and is at a low point. The market is gradually approaching the bottom, which is a signal to buy.
• When the Puell Multiple value is high, miners earn more than the annual average. The price of Bitcoin is in sync with the value of this indicator and is at a high point. The market will gradually approach the top, which is a signal to sell.

Historically, a Puell Multiple between 4.0-8.0 represents a market top; a Puell Multiple of less than 0.6 represents a market bottom. When it is above 1.0, miners are profitable; when it is below 1.0, miners are under income pressure.