The Puell multiple after the BTC difficulty coefficient change has recently been less than 1, which may indicate that BTC miners still face challenges.

The Puell multiple after the BTC difficulty coefficient change did not increase by 1

According to a researcher from Glassnode, an on chain analysis company, miners' income is still around 12% lower than the average level of the past year. The enthusiasm indicator here is the "Pu'er multiple", which takes into account the ratio between the daily earnings of BTC miners (in US dollars) and the 365 day moving average system (MA).

When an indicator value exceeds 1, it means that the current income of miners exceeds the average level of the past year. At this stage, miners generally find that mining can make money.

On the other hand, being below this threshold indicates that miners' earnings are lower than the annual average, which may indicate that this group is likely to face challenges.

However, there is a problem with the Pu'er multiple, which only lies in the price of digital currency. This indicator does not take into account another important factor for miners: the mining difficulty coefficient.

The difficulty coefficient of mining is a built-in feature of Bitcoin blockchain, which depends on the difficulty of miners currently exploring blockchains on the internet. The emergence of this concept is due to the BTC blockchain technology's commitment to maintaining blockchain production efficiency (or more simply, miners solving buying and selling transaction speeds) and stability.

When the internet hash rate (considering the total computing level transmitted to the chain) increases, miners can more effectively hash blocks. However, as the franchise store does not want such a situation to occur, it enhances the difficulty of alleviating the miners' speed and allows them to return to the speed required for normal operations.

Due to the difficult existence, every time the hash rate increases, the income of individual miners will decrease. The main reason is that the block rewards have always been consistent (not only in decreasing activities where rewards are halved), which means that if more miners connect to the network, each participant's own market share will shrink.

The modified version number of this indicator, "Pu'er multiple after difficulty coefficient change," provides a more realistic indication of the phenomenon of miners, as it elaborates on the mining difficulty coefficient.

The following is a data chart that shows the trend of this indicator in recent years:

As shown in the figure, earlier this year, when the Bitcoin market gradually continued to rise, the P/E ratio of Bitcoin stocks increased by one level. At present, the value of this indicator is 1.2, indicating that the overall income of miners is much higher than the annual average level.

However, although the price has recently skyrocketed, the index after the difficulty coefficient change is still less than 1, and it is applicable to all bear markets in the stock market.

At the current level of 0.88, miners' earnings are 12% lower than the annual average, which means they are likely to face some work pressure now, although not as severe as at the bottom of the stock market bear market.

BTC Price

At the time of writing, the transaction price of Bitcoin was approximately $30400, which increased by 9% last week.