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Bitcoin Puell Multiple Dips Back Into Discount Territory as Market Recovery Falters
TL;DR
Bitcoin’s Puell Multiple has slipped back into the “discount zone,” a level that has historically marked moments of undervaluation and stress for miners. According to CryptoQuant analyst Gaah, the indicator hasn’t been this low since March 2025, when Bitcoin briefly traded near $75,000.
The Puell Multiple measures how miner revenue compares to its 365-day average. A reading below 1 means miners are earning materially less than usual, often reflecting financial strain that can push smaller operations toward capitulation. Historically, these periods have aligned with accumulation zones and early phases of major reversals.
Gaah noted that these discount phases tend to show up when sentiment is bleakest, yet they often precede strong recovery trends: “These are the price zones where risk decreases and upside potential increases.”
Mining Profitability Under Pressure
Adding to the picture, miner hash price—an estimate of how much revenue a miner earns per terahash—has dropped roughly 43% in the past four months. Data from Hashrate Index puts the metric at just $0.036 per TH/s per day, one of the lowest levels ever recorded.
This sustained decline highlights the profitability squeeze facing miners after months of price turbulence and rising network difficulty.
Sharpe Ratio Signals Elevated Uncertainty
Another key risk indicator, Bitcoin’s Sharpe ratio, has also moved into historically favorable territory for long-term accumulation. A near-zero reading typically indicates poor recent returns relative to volatility—conditions that often precede trend resets as markets reprice risk.
CryptoQuant recently noted that these Sharpe environments have been associated with major turning points in prior cycles.
Recovery Attempts Lose Steam
Despite those potentially constructive on-chain signals, price action remains sluggish. Bitcoin attempted twice to push through the $88,000 level in the past 12 hours but failed to break resistance. The asset now trades around $87,600 as it consolidates sideways.
Santiment commented that, even with early-week strength, most wallets still show notable short- and mid-term unrealized losses, keeping sentiment restrained while traders wait for confirmation of a more durable reversal.
