Bitcoin Hits $108,000 But Miner Revenues Lag Behind

Bitcoin's price surged to a new high, exceeding $108,000. However, miner revenues have not kept pace with this price increase, leading to a situation where the Puell Multiple remains near the discount zone. The Puell Multiple, currently at 1.40, indicates a disconnect between the market price and mining income, particularly following the post-halving reward reduction in April.

This scenario, where prices are high but miner profitability is low, is relatively rare and suggests that there may be more room for bullish expansion in the coming months. According to CryptoQuant, this trend could point to a mismatch between price action and miner profitability. The Puell Multiple, which measures daily miner revenue against its 365-day average, is currently below levels that typically signal overvaluation but still above the classic discount threshold of 1.0.

Historically, when the Puell Multiple is below 1.0, it is associated with periods of accumulation or undervaluation. A low reading often indicates that prices are high while miners are earning less, usually due to recent structural changes like halving events. The current reading of 1.40 suggests that miner returns are relatively conservative during this bullish cycle, hinting at a maturing rally that may not yet be in its euphoric phase.

Despite Bitcoin’s bullish momentum and renewed all-time highs, miner earnings have not kept pace. This lag is partly attributed to the reduction in block rewards following the April 2024 Halving. With fewer new coins being issued and circulating supply tightening, market momentum may now be driven more by institutional buying or demand from spot ETFs. While retail enthusiasm plays a role, indicators such as the Puell Multiple reveal a deeper imbalance. The subdued reading suggests that although Bitcoin is gaining in price, the fundamentals behind miner incentives remain compressed. This scenario sets the stage for a delayed revenue recovery—one that could materialize if prices continue to rise or transaction volumes increase.

Historical trends show that a Puell Multiple under 1.0 often coincides with accumulation periods. At 1.40, the metric still reflects relatively conservative miner returns during a bullish cycle. Seeing such low figures at new price peaks is uncommon and hints at a maturing rally, possibly not yet in its euphoric phase. CryptoQuant emphasizes that this rare convergence of high prices and low miner revenue could signal that the current cycle has more room to grow. Should miner income begin to recover in tandem with ongoing demand, there may be a continued push toward higher valuation levels in the coming months.