- Miners could get back to increasing revenue when Puell Multiple left the capitulation zone.
- Market statistics showed that the current situation was not overheated.
bitcoin [BTC] Landlords haven’t been the only recipients of welcome developments lately. Like the landlords, the miners who have suffered harsh conditions may have cause for celebration in the short term. This after they spent months with losses.
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Comfort before hope
The reason for this drop was due to the Puell Multipel coming out of the red. The Puell Multiple is an important metric that measures mining profitability. The metric supports the relationship between the daily issuance of the currency and the 365-day moving average (MA) of the same issue.
According to Philip Swift, founder of LookIntoBitcoin, Puell Multiple is out of the capitulation zone after 191 days of weakness in the area.
Puell multiple recently shows rest for # Bitcoin Miner.
After 191 days in the surrender area, multiple littermates were collected. It shows relief to miners by increasing revenue and is likely to reduce selling pressure.
Free live chart: https://t.co/G9HDcNLL9T pic.twitter.com/MBRef5fZIE
– Philip Swift (PositiveCrypto) February 2, 2023
In addition, Glassnode data showed that the action was close to overturning the previous defeat. At the time of publication, the Puell multiplier is 0.996. This was an impressive uptick considering that depreciation indicates a loss in revenue.
On the other hand, the current state of about one indicates an increase in miners’ earnings. Therefore, this could be crucial in reducing selling pressure from miners, which they have been using to cover the tightening market condition.
At the time of evaluating the information provided by Glassnode, miners earnings It was heading towards the upside. This metric shows how much network validators earn. This includes newly minted coins. At the time of writing, the earnings are 976.80 BTC.
Positive market reaction to the FOMC announcement extended to the mining sector.
Cool off in the heat
Additionally, Glassnode data revealed that the entire Bitcoin market has leveled off. According to the chain’s information provider, HODL ratio (RHODL) achieved It rose to 387.22 on January 28.
The RHODL ratio measures the percentage of HODL waves achieved for one week and one to two years. However, because the ratio was not very high, it indicated that the market was not overheating and that this top of the cycle was still far away. This may provide a long-term buying opportunity.
Is your wallet green? paying off Bitcoin profit calculator
Meanwhile, BTC price action could improve from the expected downtrend next Statement of the Federal Open Market Committee. But the price found it difficult to reach $24,000 again, according to CoinMarketCap. Some analysts have maintained the status quo that the currency is getting stronger.
In a recent tweet, the stock-to-flow creator wrote PlanB stick to his previous opinion $25,000 for 200 weeks with a note of half being crucial.
# Bitcoin Get stronger.. half is coming🔥 pic.twitter.com/h4TD3JPuWC
– PlanB (@100 trillion USD) February 2, 2023