Bitcoin miners want to sell BTC for way above $50K, new analysis shows

bitcoin mining, puell multiple, miners position index, BTC
“Bitcoin mining” by Marko is licensed under CC BY 2.0

Key Bitcoin mining Takeaways:

  • CryptoQuant report shows that miners are not ready to sell at current Bitcoin prices.
  • Puell Multiple Indicator was a contributing factor.
  • Minor Position Index stood at a low point of -0.405.
  • Is it profitable to mine Bitcoin?

Yerevan ( – Bitcoin miners are not ready to sell their coins at $50,000, according to a report conducted on the CryptoQuant analytical platform. The analyst based their assumption on the Puell Multiple indicator and the Miner Position Index (MPI), which is at a critical low.

Puell Multiple indicator

In hindsight, the indicator examines the fundamentals of mining profitability and how it can influence the market. It is calculated by dividing the daily coin issuance (in USD) by its 365-day moving average (in USD). The resulting graph below shows the Puell Multiple (PM) and its relevance to the price cycles.

Puell Multiple formula and graph. Source: Glassnode Academy
Puell Multiple formula and graph. Source: Glassnode Academy

If the PM is high, current miner profitability is high compared to the yearly average. Low values indicate the opposite.

The study conducted by CryptoQuant revealed that the mining profitability at Bitcoin’s current prices of $48-50,000 is still 40 percent lower than earlier this year when BTC had the same value.

While the PM is virtually at the same level, miners considered it a low and not a high earlier in the year. However, they are still holding out for higher BTC prices and subsequently higher mining profitability.

Puell Multiple indicator. Source:
Puell Multiple indicator. Source:

The research presented above also used another indicator called the Miner Position Index.

Also read: Could Fed tapering cause a massive crypto market crash? The dollar answers

Miner Position Index

Miner Position Index (MPI) is quite similar to the Puell Multiple. However, instead of the daily coin issuance, the index uses all miners’ outflows divided by its 365-day moving average. In other words, the ratio of BTC leaving the miners’ wallets to its one-year moving average.

According to the report, that number stood at -0.405. However, for the miners to willingly sell their Bitcoin, that number has to stand two or higher.

Miners Index. Source:
Miner Position Index. Source:

Also read: Bitcoin gains more powers as ETC Group launches the first BTC Futures product in Europe. Exclusive Report

Is it profitable to mine Bitcoin?

After the recent crackdown from Chinese regulators, Bitcoin mining demanded infrastructure for energy-intensive business.

In detail, the Chinese government shut down most of the mining farms in the South-East in late June, banning all crypto-related activity. The new order forced the miners to either relocate or find other means of income.

However, building a new infrastructure poses a confluence of obstacles. Finding cheap and reliable energy sources is the number one issue, as well as building mining facilities.

While the regulations from China were harsh on miners, they also lowered the competition. Bitcoin’s bullish price action since mid-July meant higher mining profitability for the remaining participants.

Gerson Martinez, a market maker for Morgan Stanley banking giant, commented on the current mining climate.

“I can’t help but think that we’re going to look back on these days as wildly profitable for miners. We definitely are in a golden age of [crypto] mining”

asserted the market maker.

According to the CryptoQuant report, the miners don’t agree with Mr. Martinez’s assumption and are currently holding out for higher prices and larger profits.

Also read: China crypto ban boosts global Bitcoin miners reward by 40-50%

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