The Bitcoin mining industry is seeing some improvement, as reflected in the recent upswing of the Puell Multiple. After 191 days of hardship, this key on-chain metric finally rose, bringing hope to the miners.
The Puell Multiple evaluates the Bitcoin mining sector and calculates the daily mining revenue divided by electricity expenses. A score of 1 or greater shows profitability, whereas a value below 1 signifies losses for miners.
The recent increase in the Puell Multiple indicates that Bitcoin mining revenue has risen, enabling miners to cover expenses and potentially earn a profit. According to analyst Peter Swift, this is a positive development for the industry, which has faced difficulties in the past 191 days.
During this period, Puell Multiple stayed in the negative zone, showing mining industry was unprofitable and incurring losses. This caused increased selling pressure as miners tried to reduce their losses by selling their Bitcoin.
CryptoQuant’s on-chain data reveals a decrease of 16,917 BTC in total Bitcoin miner reserves since July 2022, indicating a shift in the market, potentially due to miner sales or operational cost coverage.
A decline in miner reserves raised doubts about the stability of the mining industry and its effect on the crypto market. However, the recent surge in Puell Multiple suggests. Bitcoin miners can now relax as higher revenue will reduce their selling pressure.
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Positive for Bitcoin and the crypto market as supply-side pressures could decrease, leading to a potential price rise. Bitcoin’s price increased 45% YTD, starting at $16,540 and reaching a high of $24,280, outpacing Ethereum. The surge came after Fed Chair Powell hinted at disinflation in the economy.