G a a h
Puell Multiple close to 2023 highs
The miners' revenue has been increasing over the last 3 months, now reaching the highs of the year. Miners are the only entity in the market that requires constant costs, since they need to pay for electricity, maintenance and invest in machines to keep the farm going. Therefore, the behavior of this entity is always linked to the price to a certain extent, since the volume of BTC held by miners today is around 9.40% of the total circulating supply of Bitcoin. Historically, Puell Multiple has accurately captured the tops and bottoms of the Bitcoin price, cycle by cycle since 2012. Values below 1.00 (Green Line) mean that the price and revenue of miners is decreasing significantly compared to the cost of their operation. Small operations suffer from this market momentum and are forced to capitulate and even stop operating. Values above 3.00 (Red Line) mean that the price and revenue of miners is increasing significantly compared to the cost of their operation. As the indicator reaches new highs, it indicates overvaluation in the price, signaling caution about a possible market top in the short term. Total fees paid to miners (calculated in USD) reached a new peak of $11.7 million on November 15. This is the second highest peak in 2023. However, there is a large window for miners' revenue to increase historically and as the market heats up with new technologies being deployed on the Bitcoin network, it will boost miners' profits and reflect on the Puell Multiple.