A return to the peak of the 2017 bull market could signal “major macro highs” for Bitcoin, but this time, institutions are here, says analyst Philip Swift.
Bitcoin (BTC) miners are selling less and less BTC, but if one metric is correct, they could soon start causing a major price correction.
In an update on March 11, Philip Swift, creator of on-chain data resource LookIntoBitcoin, flagged familiar warning signs from the Puell Multiple.
Developed by David Puell, the Puell Multiple tracks when miners are likely to start selling en masse in order to realize profits from participating in the Bitcoin network.
It divides the value of “new” BTC issued per day by one-year moving average issuance, both in US dollars, to give an insight into where selling would be most profitable for miners.
A look at the multiple’s historical performance shows that highs — when its value enters an upper red zone on the chart — coincide with Bitcoin price peaks and subsequent sell-offs.
For Swift, with the multiple now closer to the red zone than at any time since late 2017, the danger is clear.
“The Puell Multiple, which looks at miner rev today vs.