Classic Bitcoin Bottom Indicator (Patreon)

The Puell Multiple is a market metric for estimating the level of sell pressure in the market coming from miners. Historically, mining revenue primarily consisted of block subsidies awarded to a miner for finding a block. The USD value of that subsidy changes on a daily basis as the price of bitcoin changes. Traders found it useful to consider the value of the block subsidy to determine what sorts of pressures miners faced to sell these rewards to continue operations, since forced sellers in a market tend to bring down price. Enter David Puell. The issue with only looking at the daily miner revenue is that it does not tell you how healthy that revenue is over a period of time. So Puell developed the Puell Multiple.