BTC On-Chain Analysis: A Look at Effects of Miner Migration

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In Brief
  • In July, Bitcoin's mean block interval reached the highest value in more than ten years.

  • The mining difficulty reached a yearly low in July.

  • The Puell Multiple has reached the undervalued zone.

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A look at Bitcoin (BTC) on-chain data as it relates to miners, more specifically the Mean Block Interval and Mining Difficulty, in order to better understand the effects of the current miner migration.

The migration has caused a considerable increase in the time that it takes for a block interval to be mined. This has been adjusted by a significant increase in mining difficulty.

Mean block interval and Mining difficulty

The mean block interval is the average time (in seconds) that it take for a block to be mined. If a block takes too long to be mined, the difficulty will adjust in the next interval, moving lower so that a block is mined in a more average time.

The mean block interval reached a high of 1,033 seconds (using a seven-day moving average) on July 2. This was the highest value since 2009. 

This is a stark difference to the mean interval time since the beginning of 2020, which has oscillated between 500 and 750 seconds.

Miner Block Interval
Chart By Glassnode

However, the event was temporary and the mean block interval rate has returned towards 800 seconds since.

As a result of this increase in the time required to mine a block, the difficulty adjusted shortly afterwards.

It has fallen back to the levels of June 2020, when the BTC price was at around $9,000.

The increase in the time required to mine a block has nearly caused miner capitulation, something that could be remedied by either another decrease in difficulty or an increase in the price of BTC.

Miner difficulty
Chart By Glassnode

Miner indicators

The Puell Multiple is an indicator that divides the dollar value of all coins minted in a single day with a yearly moving average.

It reached the undervalued zone once more, doing so on June 27. However, it bounced almost immediately afterwards. 

The previous time the Puell multiple reached this zone was in June 2020, prior to the beginning of the current bull-run. 

Interestingly, the mining difficulty is also close to its June 2020 level.

In addition to this, BTC long-term holders are continuously adding to their positions, a sign of confidence in the market.

Puell Multiple
Chart By Glassnode

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.


All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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