Journalist
Posted:
- Bitcoin price reached new highs, supported by Ordinals and Inscriptions.
- The number of addresses with profits continued to rise.
If Bitcoin[BTC] continues to rise after recovering from a bearish market, many traders have become optimistic.
A price spike
A new day brings new records for Bitcoin holders. The realized price reached a year-to-date high, and the short-term holder’s realized price also reached a YTD peak.
The STH RP rose 3%, marking the highest since May 2023.
Source: Glassnode
Ordinals play a role
Bitcoin’s daily cost is about to reach unprecedented levels, posing a potential threat. Over the past week, the Bitcoin network has accrued more than $52 million in fees, representing almost 25% of miners’ revenue during that period.
The driving force behind this wave is the Ordinals Protocol.
Bitcoin’s daily cost threatens to soar to new all-time highs.
Over the past week, the Bitcoin network has received more than $52 million in fees – representing almost 25% of miners’ revenue during that period.
The catalyst?
Ordinals Protocol.
This is a big problem because there are costs to be paid… pic.twitter.com/R5APks4EOr
— Michael Nadeau (@JustDeauIt) November 20, 2023
Ordinals is a new protocol for Bitcoin, something new for a network that was used to only having its own BTC assets.
Unlike Ethereum, which introduced several token standards, Bitcoin didn’t have this until Ordinals. Thanks to the Taproot upgrade in 2021, it became possible.
Now let’s talk about inscriptions. They are similar to NFTs, but with a twist. These digital artifacts, whether text, images, videos or MP3, are inscribed directly into a sat, the smallest Bitcoin denomination.
This is important because the data is on-chain, making it immutable and easy to verify. The interest in both Ordinals and Inscriptions played a key role in BTC’s growth.
Source: Dune Analytics
Will sell holders
High activity on the Bitcoin network allowed miners to generate more revenue. This allowed the selling pressure on the miners to decrease, supporting BTC’s price movement.
At the time of writing, BTC was trading at $37,196.35. In the last 24 hours, the price of BTC has increased by 1.57%.
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The MVRV ratio for Bitcoin also grew during this period. This implied that the number of profitable addresses using Bitcoin started to grow.
Profitable addresses have more incentive to sell their holdings, which could put some downward pressure on BTC’s continued momentum.
Source: Santiment