Bitcoin Puell Multiple (BPM)

7月9日

The Bitcoin Puell Multiple is a key indicator for evaluating buying and selling opportunities based on the profitability of Bitcoin miners.

The Idea
The Bitcoin Puell Multiple is a ratio that measures the daily profitability of Bitcoin miners in relation to the historical annual average of this profitability. It is calculated by dividing the amount of newly issued Bitcoins (in USD) each day by the 365-day moving average of that same amount. This indicator provides valuable information on Bitcoin's market cycles, helping investors to identify periods when Bitcoin is potentially undervalued or overvalued.

How to Use
To use the Bitcoin Puell Multiple, investors watch for extreme levels of the indicator. A high Puell Multiple suggests that miners are making exceptionally high profits compared to the previous year, which could indicate an overvaluation of Bitcoin and a selling opportunity (red zones). Conversely, a low Puell Multiple indicates that miners' earnings are low relative to history, suggesting an undervaluation of Bitcoin and a potential buying opportunity (green zones). The trigger thresholds for these zones can be configured in the tool's parameters.

What makes this tool different from the other "Puell Multiple" scripts available is that it is up to date in terms of its data sources, with a more precise calculation, and allows you to view the entire history.



Zone trigger limits and their visualization, as well as colors, are all configurable via the tool parameters.

Here, for example, is a configuration with more sensitive trigger levels and a different color: