According to Puell Multiple data bitcoin Miners have gotten some relief lately. After 191 days of fighting, the on-chain metric has finally triggered the anticipated rally. As a result, it brought positive news for the crypto mining industry.
Puell Multipleis a metric used to assess the state of the Bitcoin mining industry. It measures the average daily BTC mining revenue divided by the daily average mining electricity cost. A value of 1 or higher indicates that the mining industry is generating enough revenue to cover its costs, while a value less than 1 means that miners are making a loss.
Bitcoin Miners Finally Have Some Relief
The growth in on-chain data shows that revenue from Bitcoin mining is increasing. This means that miners can cover their costs and potentially even make a profit. According to Peter Swift, this is a much-needed boost to the industry, which has faced significant challenges over the past 191 days.
In the meantime, Puell Multiple remained in the capitulation zone. This means that the mining industry has difficulty in meeting its costs and is making a loss. This has resulted in increased selling pressure as miners try to sell their Bitcoin holdings to reduce their losses.
Indeed, CryptoQuant data shows that miner reserves have dropped by around 16,917 BTC since July 2022. This drop in reserves means miners can potentially sell their holdings or use them to cover operational costs.
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The decline in miner reserves has sparked discussion of the overall stability of the mining industry and its impact on the crypto market. Still, with the recent rally in Puell Multiple, it looks like Bitcoin miners can now breathe a sigh of relief as increased revenue will help ease selling pressure.
As Koinfinans.com reported, this shows that supply-side pressures may ease, leading to potentially higher prices. As a result, Bitcoin and cryptocurrency good news for the market.