After the Bitcoin halving, it's natural to observe a period of sideways movement or a decline in prices. This occurs because the Puell Multiple, a fundamental metric that relates Bitcoin's current supply to the average daily supplies over a one-year period, experiences a significant drop. This reduction in the reward granted to miners by half during the halving implies a decrease in the number of new Bitcoins entering the market daily, thereby reducing the daily average supply used in calculating the Puell Multiple.
The analysis indicates that the halving has led to a shift in the dynamics of the Bitcoin mining market. With a reduced daily average supply, there may be potentially less selling pressure from miners, which could have implications for prices and network activity. This observation aligns with historical patterns and is crucial for understanding Bitcoin's supply and demand dynamics following significant events such as the halving.
Written by joaowedson
