Bitcoin is undervalued, the Puell Multiple shows

During last two months, Bitcoin increased in more than 150%. On 12th March, it was traded for almost $4,000, which is so far the lowest value of 2020. The current price reaches almost $10,000. However, Bitcoin value still seems to be lower than it should be, and Puell Multiple supports the idea.

The Puell Multiple is calculated by dividing the daily issuance value of mined bitcoins in the current market price by the 365-day moving average of the daily issuance value in dollars. If value of the multiple drops below 0.5, it shows that Bitcoin is undervalued and its value will rise.

Up until now, the rule has always worked and therefore we may assume that it is still valid. After last Bitcoin halving, Puell Multiple dropped under the critical value, and has stayed there for a week already. Therefore, we may soon expect Bitcoin growth.

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Gulf Brokers Ltd. Review

Comparing spreads, commissions, trading platforms, rules and reading dozens...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

AI Boom Beyond Nvidia stock: Which Lesser-Known Equities Are Riding the Wave?

For many investors, Nvidia stock has become almost synonymous with the...

FT: EU plans to remove barriers for banks’ cross-border capital flows

The European Union plans to remove barriers for banks...

Why find a credit card with a lower APR?

Credit cards can be useful financial tools. They make...

SpaceX on Wall Street: a historic IPO and the first trading days

The SpaceX listing ranked among the largest IPOs in history, raising $85.7 billion. Massive investor demand expanded the capital that the company will now use to finance its next phase of development.

CD Ladder Calculator: How to Build a Smarter Savings Strategy

A CD ladder calculator can help savers plan how to earn...
spot_img

spot_imgspot_img