Bitcoin Miner Activity Falls To Extreme Silence – Bullish Signal Or Not?
Bitcoin's bear market since October has market participants watching for signs of a bottom. Recent on-chain data suggests the downturn may be nearing its end, but with a key caveat. The Miners’ Position Index (MPI) recently fell to -1.04, one of the lowest levels in Bitcoin’s history, indicating significantly reduced selling activity from miners. While this is often seen as bullish, it doesn't necessarily signal a price bottom, as historical cyclical lows didn't perfectly align with extreme MPI readings but occurred during its recovery.
Simultaneously, the Puell Multiple, which compares current miner earnings to their 365-day average, has been compressed between 0.56 and 0.98 since late January. Prolonged readings below 1 can force miners to sell, adding bearish pressure. Historically, such extended suppression has preceded price bottoms, like in late 2018 before Bitcoin bottomed near $3,200. Neither metric pinpoints the exact floor but indicates its proximity, suggesting investors should be cautious of a final dip. Bitcoin was trading around $68,686 at press time, down over 2.6% in 24 hours.
bitcoinist03/22 13:02
