• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Picture of silver and gold bitcoins stacked together on top of a dollar bill
Nexo Logo

Puell Multiple: The Bitcoin Metric That Says BTC Miners Aren’t Ready To Sell

Best Owie by Best Owie
9 months ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

Miners determine more of bitcoin price than most investors understand. The price at which miners are willing to sell usually correlates with how much profit that they can make from selling the coins that they have mined. Depending on the price of the asset, miners usually choose to sell or hold it. This could influence the market price of bitcoin.

Related Reading | Number Of Short-Term Bitcoin Holders Hits All-Time Low, How This Affects The Price

Profitability is the major reason for mining. But when profitability goes down, miners either sell and cut their losses, or the other option, where they can hold on to their coins and wait for the price to get a point where profitability increases. According to the Puell Multiple, miners are currently choosing the latter. Holding their coins instead of selling for lesser profitability.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Miner Profitability Drops

Data shows that miner profitability has dropped in comparison to the last time that bitcoin was at this price. The profitability for bitcoin back in April at $50K had been 40% higher than it is right now when bitcoin hit $50K again. This means that miner profitability is hitting the lows at all-time highs.

This drop in profitability has seen miners refusing to sell the BTC they are rewarded with for mining blocks. Instead choosing to hold these coins in wait for much higher prices.

Puell Multiple chart from CrytpoQuant

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!
Miners are selling less compared to the previous bull market | Source: CryptoQuant

The Miner Position Index (MPI) tells us the ratio of the bitcoins leaving miners’ wallets compared to the one-year moving average. This year, the Miner Position Index shows that this number has fallen to a negative 0.405. A Miner Position Index of 2 or higher means most miners are selling their coins. Below 2 means some are selling. But at a negative 0.405 number, it means almost all of the miners are choosing not to sell their coins.

Bitcoin Price Staggers As Miners Refuse To Sell

Bitcoin price has been on an upward trajectory for the better part of the weekend. Finally breaking the $50K price point on Monday as market sentiment rose into extreme greed. After the break, the price quickly went into a downward correction that dragged the price of BTC back down into the $47K range. A hard-won battle had been fought to get the price above this resistance point. But now it seems the whole process is to be repeated again due to the current dip in price.

Bitcoin price chart from TradingView.com

BTC price back up above $49,000 | Source: BTCUSD on TradingView.com

Another uptrend on Wednesday has put the digital asset on a path to taking back its position over $50K. Indicators show that the bulls still have complete control of the market. Despite the dip, sentiments have not turned into the negative. Buy pressures continue to be the order of the day as both institutional and individual investors clamor for a position in the leading cryptocurrency.

Related Reading | Why An 18% Drop In Bitcoin Could Still Be Bullish

Despite this, miners do not find this a profitable point to sell. With price projections so high, going up to over $100,000 by the end of the year, it is no surprise that miners are choosing to hold on to their coins for better prices.

Featured image from Bitcoin News, chart from CryptoQuant and TradingView.com
Tags: bitcoinbitcoin minersbtcbtcusdBTCUSDTpuell multiple
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Best Owie

Best Owie

Related Posts

Crypto starts week Positive, Bitcoin Bulls Prep For A Breakout

Bitcoin Dominance Remains High As Market Sell-Offs Settle

2 days ago
Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

Bitcoin Bearish Signal: Whale Ratio Continues To Stay At High Value

2 days ago
bitcoin

Perp Traders Remain Quiet As Bitcoin Struggles To Hold $30,000

2 days ago
Bitcoin on-chain metrics

Bitcoin On-Chain Activity Throttled After LUNA Collapse

3 days ago
Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards

Bitcoin Consolidation Uninspiring, But Run To Near $33k On The Cards

3 days ago
Bitcoin

Bitcoin Trading Volume Plummets Down From Recent Top

3 days ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Gringotts Labs rolls out Lending Protocol Zenith after Capricorn Finance becoming a winner

May 28, 2022

Datamall Chain – A Pioneer of Web3 Data Storage

May 28, 2022

Introducing Zenith.Finance, a dark-horse lending protocol crypto players should notice recently

May 27, 2022

An introduction to Capricorn.Finance

May 27, 2022

The Web3 community platform Mojor launched the alpha version

May 27, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.