Bitcoin's price might be set for a notable rise. A recent metric indicates that Bitcoin is currently undervalued, which suggests a possible increase in the future. Let’s delve into this metric and its implications.

The Puell Multiple Metric Could Impact Bitcoin's Future

If Bitcoin doesn't hold the $67,000 support level, it might drop to $64,000. Earlier this week, Bitcoin briefly touched $72,000 but faced selling pressure and is now at $67,536, a 2.69% decline. Bitcoin’s market value stands at $1.331 trillion. For the latest updates, visit NEWSLINKER.

CryptoQuant’s analysis shows that the Puell Multiple indicator, which dropped after Bitcoin’s halving event, could have significant market implications. Every four years, Bitcoin reduces the mining reward per block by half, impacting miners' earnings. Without a significant price increase to offset this reduction, miners see a notable drop in daily income.

The Puell Multiple measures the ratio of miners' daily revenues to the 365-day moving average. This ratio's sharp decline post-halving is due to the slow adjustment of the long-term moving average to the new mining reward structure. This situation reduces mining profitability unless Bitcoin’s price rises significantly.

Insights from the Current Puell Multiple Range

The current Puell Multiple range suggests that Bitcoin's network might be undervalued. If the supply of new Bitcoin decreases while demand rises, prices could increase. Investors might view the drop in the Puell Multiple as a sign that the market is adjusting to a new scarcity phase, potentially leading to a price rally.

This situation affects the supply and demand dynamics in the mining sector and could signal an adjustment period leading to significant price movements. Considering historical trends and Bitcoin’s behavior after halving events, it might take a few weeks for Bitcoin to break out and enter a new price discovery phase. Once this happens, Bitcoin prices could reach six figures, potentially hitting $100,000 by the end of this year.