Bitcoin: With Puell Multiple above capitulation, will miners halt selling?

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  • Min­ers might revert to a rev­enue increase as the Puell Mul­ti­ple left the capit­u­la­tion area.
  • Mar­ket sta­tis­tics showed that the cur­rent con­di­tion was not overheated.

Bit­coin [BTC]  hold­ers were not the only recip­i­ents of wel­come devel­op­ments recent­ly. Like the hold­ers, min­ers who have strug­gled with inhos­pitable con­di­tions may also have cause to cel­e­brate in the near term. This is after they had spent months in losses.

How many are 1,10,100 BTCs worth today?

Solace in the face of hope

The rea­son for this pro­jec­tion is due to the Puell Multiple’s exit from the red zone. The Puell Mul­ti­ple is an impor­tant met­ric that gauges min­ing prof­itabil­i­ty. The met­ric under­pins the cor­re­la­tion between the dai­ly coin issuance and the 365-day Mov­ing Aver­age  (MA) of the same issuance.

Accord­ing to Philip Swift, founder of Look­In­to­Bit­coin, the Puell Mul­ti­ple was out of the capit­u­la­tion region after 191 days of lan­guish­ing in the zone.

Fur­ther­more, Glassnode data showed that the met­ric was close to over­throw­ing the erst­while defeat. At press time, the Puell Mul­ti­ple was 0.996. This was con­sid­ered an impres­sive ral­ly con­sid­er­ing that a low­er val­ue indi­cates a rev­enue shred. 

On the oth­er hand, the cur­rent state of approx­i­mate­ly one sug­gests an increase in min­er rev­enue. Hence, this could be vital to reduc­ing the sell­ing pres­sure from min­ers, which they had used to cov­er up for the hawk­ish mar­ket condition. 

At the time of assess­ing the infor­ma­tion from Glassnode, the min­er rev­enue was edg­ing toward the uptrend. This met­ric shows how much val­ida­tors of the net­work have made. And this includes new­ly mint­ed coins. At the time of writ­ing, the rev­enue was 976.80 BTC.

Bitcoin total miner revenue

Source: Glassnode

Indeed, the pos­i­tive mar­ket reac­tion to the FOMC announce­ment also expand­ed to the min­ing oper­a­tional sector. 

Ease on the heat

In addi­tion, Glassnode data revealed that the entire Bit­coin mar­ket was sta­bi­liz­ing. Accord­ing to the on-chain infor­ma­tion provider, the Real­ized HODL (RHODL) ratio had risen to 387.22 on 28 January. 

The RHODL ratio weighs the rela­tion­ship between the one-week and one to two years Real­ized Cap HODL waves. But since the ratio was not extreme­ly high, it indi­cat­ed that the mar­ket was not over­heat­ed and that this cycle top would still be a far reach. This could offer a buy­ing oppor­tu­ni­ty for the long term.

Bitcoin Realized HODL ratio

Source: Glassnode

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Mean­while, the BTC price action was able to get the bet­ter of the pro­ject­ed down­side fol­low­ing the FOMC pro­nounce­ment. How­ev­er, the price found it chal­leng­ing to re-hit $24,000, accord­ing to Coin­Mar­ket­Cap. Some ana­lysts main­tained the sta­tus quo that the coin was only get­ting stronger.

In a recent tweet, stock-to-flow cre­ator PlanB stuck to his pre­vi­ous opin­ion of a $25,000 200-week MA while not­ing that the halv­ing would play a cru­cial role.

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