- Interest in Bitcoin ordinal numbers grew as the price of BTC soared.
- Open interest rose despite rising implied volatility.
Bitcoin’s Recent Rise [BTC] The price has sparked optimism in several sectors of the crypto market. But it wasn’t just Bitcoin that people started getting interested in. Recently, members of the crypto community were also seen showing interest in Bitcoin Ordinals.
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Ordinal inscriptions are digital assets on the smallest Bitcoin unit, a satoshi, just like NFTs.
They are named after the creator of Bitcoin, Satoshi Nakamoto.
These inscriptions contain unique and valuable information, and like NFTs, they are gaining attention in the digital world.
According to recent data, Bitcoin Ordinals BRC-20 transactions were on the rise.
In the past week, the collection of sats increased by 124%, the collection of “BTCs” increased by 30%, and “honk” grew by 300% and “ordi” by 13%. Among them, ‘sats’ occupied the first place with a market capitalization of about $166 million, surpassing ‘ordi’ by about $130 million.
Source; OKX
An increase in interest in Bitcoin ordinal numbers could benefit the Bitcoin network in terms of price in several ways. First, it adds more value to each satoshi, the smallest Bitcoin unit, which could lead to an overall increase in Bitcoin’s price.
How are traders doing?
As people see the potential value of these ordinal numbers, they may become more interested in owning Bitcoin and interacting with its network, driving demand.
In addition to NFT enthusiasts, traders also showed interest in BTC. According to Coinglass data, open interest in Bitcoin has increased significantly in recent days.
Source: mint glass
However, implied volatility (IV) around BTC also started to rise during this period.
When implied volatility (IV) increases, it affects how traders behave in different ways. Traders tend to become more risk averse because a higher IV indicates greater price uncertainty.
They may reduce their positions or avoid trading to protect their investments.
Source: Het Blok
Some traders embrace volatility, while others use hedging strategies to limit risk. Overall market sentiment becomes less predictable, potentially leading to panic selling or buying.
In such times, traders closely monitor the market news to make informed decisions based on the changing dynamics. At the time of writing, BTC was trading at $34,237.54 and had grown 1.45% over the past 24 hours.
