Bitcoin Fuel Multiple Hits 4-Month High at 0.9

Digital Asset reported three key Bitcoin mining metrics as of May 23, 2024, 2 PM, tracking network activity following the BTC halving on April 20, 2024. The halving process reduces Bitcoin mining rewards by approximately half every four years. The three indicators—miner BTC holdings, hashrate, and Fuel Multiple—provide insight into post-halving mining dynamics and potential price implications.

Miner Bitcoin Holdings

Miners held 1,802,078 BTC (approximately 207 trillion 534 billion KRW) as of May 23, 2 PM, according to CryptoQuant data. This represents an increase of 55 BTC (approximately 6.4 billion KRW) compared to seven days prior. An increase in miner holdings indicates that miners are accumulating Bitcoin rather than selling, lending, or using it as collateral.

Bitcoin Hashrate

The seven-day moving average of Bitcoin hashrate reached 977,871,502 TH/s (terahashes per second) as of May 23, 2 PM, according to Blockchain.com data. This represents a decrease of approximately 158,778,280 TH/s compared to seven days prior. Hashrate measures the total computational processing power deployed on the Bitcoin network for mining. A decrease in hashrate indicates reduced mining demand from network participants.

Bitcoin Fuel Multiple

The Bitcoin Fuel Multiple stood at 0.9 as of May 23, 2 PM, according to Viziometrics data. This represents an increase of 0.05 compared to seven days prior. The Fuel Multiple is calculated by dividing daily Bitcoin mining output by the 365-day moving average and serves as a timing indicator for assessing market conditions relative to mining volume.

The metric interprets as follows: a Fuel Multiple above 4.0 signals overheated mining conditions, typically preceding Bitcoin price declines. A Fuel Multiple below 0.4 indicates significantly reduced miner profitability, suggesting Bitcoin is undervalued and often preceding price increases. The May 23 reading of 0.9 marks the first time this level has been reached since January 23, approximately four months prior.

Data period: May 16–23, 2024.