Bitcoin Puell Multiple Falls Below Discount Zone as Recovery Stagnates

The Bitcoin Puell Multiple has returned to the discount zone, a point historically associated with Bitcoin market corrections, as noted by CryptoQuant analyst Gaah on Tuesday. The last time the indicator was at this low was in March 2025 when the price hovered around $75,000.

“Price zones where risk decreases and upside potential increases. It is precisely in these moments of pessimism that a new uptrend begins to form.”
— Gaah, CryptoQuant

The Puell Multiple measures BTC miners’ daily revenue against their annual average. When it drops below 1, it indicates that miners are under financial strain, hinting at potential capitulation.
This indicator is crucial for gauging miner profitability and often signals market tops and bottoms.

Markets Presenting Opportunities

Markets appear to be entering a favorable phase:

“Historically, all significant correction reversals have initiated in these discount regions. While not a definitive sign of an immediate bottom, it has often indicated major lows.”
— Gaah via Twitter

The miner hash price has dropped by 43% in the last four months, reflecting declining miner profitability.

Additionally, the Sharpe ratio has also navigated into favorable risk/reward territory, historically tying it to periods of peak uncertainty and the beginning of risk reevaluation.

Bitcoin Recovery at Standstill

Recent trading shows Bitcoin struggling as it remains around $87,600 after attempting to breach the $88,000 mark twice within 12 hours, ultimately failing to seize that resistance.
“Despite a solid recovery in the early week, the crypto markets still indicate considerable short and mid-term losses amongst average wallet investments,” reported Santiment.

Tags: Bitcoin, Bitcoin Price, Bitcoin Mining