Bitcoin price for the recently announced metric BTC price could enter a rise-focused movement. According to the metric, Bitcoin is currently in a discount range indicating its value might be low. This price range could signal a potential rise in the future. Let’s take a look at the related metric and the outcome.
Puell Multiple Metric Could Yield Important Results for Bitcoin
If Bitcoin fails to maintain the $67,000 support, the price could drop to $64,000. After a brief move towards $72,000 earlier this week, Bitcoin faced some selling pressure. It is currently at $67,536. This figure represents a 2.69% drop, and BTC’s market value was recorded at $1 trillion 331 billion.
According to CryptoQuant’s analysis, the drop in the Puell Multiple indicator after Bitcoin’s halving event could have significant implications for the market. Bitcoin halves the mining reward per block every four years. This directly affected miners’ earnings. Unless Bitcoin shows a significant increase to compensate for this drop, miners experienced a substantial decrease in daily income.
Puell Multiple measures the ratio between miners’ daily revenues and the 365-day moving average. The sharp drop in this ratio post-halving is due to the delay in adjusting the long-term moving average to the new mining reward reality. This situation is also a reason why mining activities become less profitable unless there is a significant increase in Bitcoin’s price.
What Did the Current Puell Multiple Range Tell Us?
The current Puell Multiple range indicated that Bitcoin‘s network value might be low. The decrease in new Bitcoin supply, especially if demand continues to rise, has the potential to push prices up. Investors might interpret the drop in Puell Multiple as a signal that the market is adapting to a new scarcity phase, potentially setting the stage for a market rally.
This situation will affect Bitcoin’s supply and demand dynamics in the mining sector. It could also signal an adjustment period that will herald significant price movements in the future. Considering historical trends and Bitcoin’s post-halving behavior, it may take a few weeks for Bitcoin to make a new breakout and enter the price discovery zone. Once such a move occurs, BTC prices could start reaching six-figure numbers. Accordingly, the BTC price could be ready to reach $100,000 by the end of this year.
