CryptoQuant User Guide
English
English
  • Why trust CryptoQuant data
  • Top 15 Preset Charts ⭐
    • Miner Selling
    • Whale Accumulation
    • Huge OTC deal
    • Buying/Selling Pressure
    • Market Trend
    • Market Sentiment
    • Whale Dumping
  • Intro to On-Chain
    • What is on-chain data?
    • Why Market Driven?
  • Background Knowledge
    • Why Entity Matters
    • What is UTxO?
  • Exchange Flows/Indicators
    • Glossary (Exchange Flows)
    • Exchange In/Outflow and Netflow
    • Exchange Reserve
    • Exchange to Exchange
    • Exchange Addresses Count
    • Exchange Transactions Count
    • Fund Flow Ratio
    • Exchange Supply Ratio
    • Exchange Inflow CDD
    • Exchange Inflow - Spent Output Age Bands
    • Exchange Inflow - Spent Output Value Bands
  • Miner Flows/Indicators
    • Glossary (Miner)
    • Miner Outflow
    • Miner to Exchange
    • Miner Supply Ratio
    • Miners' Position Index (MPI)
  • UTXO Data/Indicators
    • Glossary (UTxO)
    • Profit and Loss (UTxO)
    • Profit and Loss (Supply)
    • Coin Days Destroyed (CDD)
    • Binary CDD
    • Mean Coin Age (MCA)
    • Sum Coin Age (SCA)
    • Sum Coin Age Distribution (SCA Distribution)
    • Spent Output Profit Ratio (SOPR)
      • aSOPR (Adjusted SOPR)
      • STH-SOPR
      • LTH-SOPR
      • SOPR Ratio (LTH-SOPR/STH-SOPR)
    • Net Unrealized Profit/Loss (NUPL)
    • UTXO Bands (Age)
      • UTXO Age Bands
      • Realized Cap - UTXO Age Bands
      • Realized Price - UTXO Age Bands
      • UTXO Count - Age Bands
      • Spent Output Age Bands
    • UTXO Bands (Value)
      • UTXO Value Bands
      • Realized Cap - UTXO Value Bands USD
      • UTXO Count - Value Bands
      • Spent Output Value Bands
  • Market Data/Indicators
    • Glossary (Market)
    • Open Interest
    • Funding Rates
    • Estimated Leverage Ratio
    • Taker Buy Sell Volume/Ratio
    • Capitalization models
    • Realized Price
    • Exchange Whale Ratio
    • MVRV (Market Value to Realized Value) Ratio
  • Network Indicators
    • NVT Ratio
    • NVT Golden Cross
    • Puell Multiple
    • Stock to Flow Ratio
    • Stock to Flow Reversion
    • NVM Ratio
  • Stablecoin Exchange Flows/Indicators
    • Glossary (Stablecoin)
    • Stablecoin Network Data
    • Stablecoin Exchange In/Outflow & Netflow
    • Stablecoin Exchange Reserve
    • Stablecoin Exchange Addresses Count
    • Stablecoin Exchange Transactions Count
    • Stablecoins Ratio
    • Stablecoin Supply Ratio (SSR)
  • Fund data & Premium
    • Grayscale Bitcoin Trust (GBTC)
      • GBTC Digital Asset Holdings
      • GBTC Premium or Discount
  • Grayscale Ethereum Trust (ETHE)
    • ETHE Digital Asset Holdings
    • ETHE Premium or Discount
  • Coinbase Premium
  • Korea Premium Index
  • Bank Supply Ratio
Powered by GitBook
On this page
  • Definition
  • Interpretation
  • By Value Itself
  • By Examining Trend
  • Decoding Puell Multiple Framework: Market Cycles
  • Link to Our Data

Was this helpful?

  1. Network Indicators

Puell Multiple

Puell Multiple is defined as the ratio of the daily value of the issued coin in USD divided by 365 days moving average of the daily value of issued coins in USD.

PreviousNVT Golden CrossNextStock to Flow Ratio

Last updated 1 year ago

Was this helpful?

Definition

Puell Multiple is defined as the ratio of the daily value of the issued coin in USD divided by 365 days moving average of the daily value of issued coins in USD.

Puell Multiple=Mining Revenue in USD365 days moving average (Mining Revenue in USD)\text{Puell Multiple} = \frac{\text{Mining Revenue in USD}}{\text{365 days moving average (Mining Revenue in USD)}}Puell Multiple=365 days moving average (Mining Revenue in USD)Mining Revenue in USD​

Interpretation

Puell Multiple can be interpreted as "If all mined bitcoins were sold immediately in the market, how profitable mining pools are compared to last historical one year?" This metric explores market cycles from the global mining revenue perspective.

Miners are the only entity that requires constant cost such as running electricity. Thus, miners' behaviors are always linked to price to certain degree. Puell Multiple compares 365 days average estimated revenue with short-term revenue of miners.

By Value Itself

Predicting Price Tops and Bottoms with the Puell Multiple: Indicator Overview

  • Values over ‘4’: Short Signal

    If Puell multiple rises, it indicates that price=Miner's revenue is increasing significantly compared to the cost they put in. In this phase, bitcoin soared to point where Miner's revenue far exceeds the cost they put in. If we put regard bitcoin's true value with miners' cost (POW) and hashrate, this could indicate that bitcoin is overpriced.

    In other words, this could indicate that price is overvalued along with the increasing miner's motive to sell.

  • Values under ‘0.5’: Long Signal

    If Puell multiple decreases, it indicates that price=Miner's revenue is decreasing significantly compared to the cost they put in. In this phase, bitcoin can become extremely volatile, and prices plunge to the point where miners can't cover fixed costs of electricity from their mining hardware, making some miners stop their mining action.

    In other words, this could indicate that the price is undervalued along with the increasing miner's motive to hold their bitcoin reserve.

By Examining Trend

It shows miners' short-term revenues relative to long-term profits.

  • Increasing trend: Marketcap (Price) is heating up compared to miners' cost

  • Decreasing trend: Marketcap (Price) is cooling down compared to miners' cost

Decoding Puell Multiple Framework: Market Cycles

Let's streamline its interpretation:

High Puell Multiple: Caution Flag

  • Indicator: Potential market top.

  • Implication: May signal overvaluation as miners sell bitcoins at higher prices.

Low Puell Multiple: Buying Window

  • Indicator: Potential market bottom.

  • Implication: Opportunity for providing advantageous profit-taking as Bitcoin miners sell at relatively lower prices.

Halving Events: Puell Dynamics

  • Pre-Halving: Expect highs as supply anticipation rises.

  • Post-Halving: Reflects shifts in miner behavior and market response.

Sentiment Gauge: Rapid Insights

  • Indicator: Shifts in miner sentiment.

  • Implication: Early indicators of potential market trends.

For the strategic Bitcoin investor, combining Puell Multiple insights with other indicators is key for a nuanced understanding of the dynamic cryptocurrency landscape. As you navigate Bitcoin's economy, Puell Multiple stands as a concise guide, unraveling hidden narratives within miner activities and market sentiments—a must for strategic Bitcoin investors.

Link to Our Data

Puell Multiple in CryptoQuant Live Chart
Puell Multiple in CryptoQuant Data API Docs
Bitcoin Puell Multiple Short Signal
Bitcoin Puell Multiple Long Signal
Puell Multiple: CryptoQuant