Bitcoin Price Dips but Puell Multiple Signals More Gains Ahead

Bitcoin’s price in USD has faced a slight downturn, dropping to $104,793 as of June 14, 2025, amid geopolitical tensions in the Middle East. Despite this 2% decline over the past 24 hours, a key on-chain indicator, the Puell Multiple, suggests the current bullish rally may still have significant upside potential.

Why Bitcoin’s Price Is Trending

Bitcoin’s recent price correction, down 6% from its all-time high of $111,000 last month, has sparked discussions about its next move. The dip coincides with rising uncertainties in global markets, yet the leading cryptocurrency continues to trade in the mid-$100,000 range. According to CryptoQuant analyst Gaah, the Puell Multiple, currently below 1.40, indicates that Bitcoin may be undervalued relative to miner income, hinting at room for further growth.

Understanding the Puell Multiple

The Puell Multiple is an on-chain metric that compares daily Bitcoin miner revenue to its 365-day moving average. Historically, readings below 1.0 signal market accumulation or miner stress, while values above 2.0 often indicate overvaluation. Gaah notes, “This behavior of the Puell Multiple suggests that, despite significant price appreciation, miners’ revenues have yet to follow suit.”

The current reading near 1.40 suggests Bitcoin is in a “non-euphoric” phase, driven by external factors like institutional demand rather than speculative frenzy.

Impact of the April 2024 Halving

The April 2024 Bitcoin halving, which reduced block rewards from 6.25 BTC to 3.125 BTC, has played a significant role in the current market dynamics. While halvings typically drive price increases due to reduced supply, they also strain miner revenues. Gaah explains, “The drop in block rewards has likely exacerbated the revenue gap for miners, even as BTC prices rise on broader adoption.”

This decoupling of price and miner profitability highlights a unique market cycle where demand, not mining economics, is the primary driver.

Institutional Demand Fuels Optimism

Unlike previous bull runs fueled by retail euphoria, Bitcoin’s current rally is underpinned by institutional interest. Companies like GameStop, which recently purchased 4,710 BTC after raising $1.75 billion through convertible notes, are increasingly adopting Bitcoin as a store of value. Similar strategies by firms like Metaplanet and Strategy underscore Bitcoin’s growing legitimacy.

Additionally, spot Bitcoin ETFs and long-term holders reducing active selling have tightened circulating supply, supporting price stability. Gaah suggests, “The current environment may represent a potential window of opportunity to accumulate BTC.”

Bullish Forecasts for Bitcoin’s Future

Analysts remain optimistic about Bitcoin’s trajectory. Bitwise CEO Hunter Horsley predicts minimal resistance once Bitcoin surpasses $130,000, while crypto analyst Ted Pillows projects this milestone could be reached by Q3 2025. These forecasts align with the Puell Multiple’s indication that the market is not yet overheated.

Key Factors Driving Bitcoin’s Price

• Institutional Adoption: Growing corporate and ETF investments.
• Supply Constraints: Halving and reduced selling by long-term holders.
• On-Chain Metrics: Puell Multiple signaling undervaluation.
• Market Sentiment: Muted retail interest but strong institutional backing.

Challenges and Market Uncertainty

Despite the bullish indicators, Bitcoin faces short-term challenges. The recent 1.8% dip to just under $106,000 reflects ongoing market consolidation. Geopolitical tensions in the Middle East and broader economic uncertainties could continue to exert downward pressure. However, Bitcoin’s historical volatility suggests these corrections are not uncommon during bull cycles.

What’s Next for Bitcoin?

The combination of a high market price, conservative miner fundamentals, and robust institutional demand creates a compelling case for Bitcoin’s continued growth. If miner revenues eventually align with rising demand—potentially through increased transaction fees or network activity—the rally could gain further momentum.

For now, investors are closely monitoring on-chain metrics like the Puell Multiple and macroeconomic developments to gauge Bitcoin’s next move.