Bitcoin: The Puell Multiple

BTC News #43

We have observed a handful of metrics that have been reliable to identify tops and bottoms in Bitcoin Cycles. The Puell Multiple can be added to that list.

Using The Puell Multiple, we can analyze the supply side, Bitcoin issuance. Everyday new Bitcoins are being released onto the network via mining. Those Bitcoins are first awarded to miners. This is the revenue for miners (Bitcoin rewards + transaction fees) and has a big impact on price.

Miners add major sell pressure to the Bitcoin network because they need to constantly be selling Bitcoin in order to pay for their business costs of running a mining operation. These costs include:

  • Electricity

  • Mining hardware

  • Rent and other expenses for the facility

  • Other operational expenses

The Puell Multiple is calculated by taking the daily issuance of Bitcoin (in USD) and dividing by the 365-day moving average of daily issuance value (in USD). This analyzes the value of Bitcoins being mined daily compared to longer-term norms. Using this we can identify when new Bitcoins being mined are too high or too low in value relative to the past year.

Periods when The Puell Multiple hit the green zone were times when Bitcoins daily issuance value was low (good buy zone) and the red zone is when Bitcoins daily issuance was considered high (good sell zone) relative to historical norms. The dotted vertical lines are the Bitcoin halvings when Bitcoin rewards for miners get cut in half. The halving is important because the daily issuance is severely impacted after each halving since the amount of Bitcoin being rewarded to miners is cut in half. Therefore transaction fees and price appreciation become increasingly important to miners.

Luckily for us, Glassnode makes tracking this metric very easy. Looks like we still have some ways to go this cycle.


In the news…


Bulls on Crypto Street - Free Intro Course & Chatroom

If you’re interested to learn more about crypto trading, macro analysis, and on-chain metrics, you can get a free intro course and access to a crypto chatroom run by my friends at Bulls on Wall Street.


Resources I Use

Glassnode - Track Bitcoin on-chain metrics

I use Glassnode for all the metrics I track on the Bitcoin network. Their platform is extremely user friendly and fun to use.

Binance - Get 10% off trading fees using my link

Binance is the main exchange to trade the crypto markets.

Coinsquare - Bitcoin Exchange For Canadians

Coinsquare offers Bitcoin trading in Canadian dollars and is one of the top exchanges in Canada.

Tradingview - Charting Software

I use Tradingview daily to analyze trading charts and find areas of support and resistance.

TokenTax - Crypto Taxes

I use TokenTax to calculate my crypto taxes at the end of the year. They plug in directly to the exchange you use through an API. After you get the full report you can send it to your accountant or have their accountants finalize everything.


Nothing in this article is investment advice. I’m not a financial advisor. Do not make investment decisions based on what is in this article or any other article written by BTC News or Blockedia.