What Is Puell Multiple?
The Puell Multiple compares daily miner revenue (in USD) to the 365-day moving average of daily miner revenue. When the ratio is high (above 4), miners are earning significantly more than their yearly average, typically coinciding with market euphoria and potential cycle tops. When it's low (below 0.5), miners are under extreme stress — historically marking cycle bottoms.
How Puell Multiple Works
The Puell Multiple captures the economic pressure miners face. High Puell values mean miners are highly profitable and may sell excess coins (increasing supply pressure). Low values mean miners are unprofitable and are forced to sell reserves or capitulate — creating the final wave of selling that marks bear market bottoms.
Why It Matters for Traders
The Puell Multiple has historically been one of the most reliable cycle indicators. Values above 4 preceded every major Bitcoin top, and values below 0.5 preceded every major bottom. While the exact thresholds may shift post-halving (as block rewards decrease), the concept of comparing miner revenue to its historical average remains a fundamental valuation signal.
