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.
