Bitcoin’s Staggered Pace: A Look at the Ebbing Trend of Ordinal Inscriptions
Since September 25, 2023, a notable drop in Bitcoin-based Ordinal inscriptions can be observed, reaching its lowest since mid-April. Partcularly over October 3 and 4, less than 17,000 inscriptions were imprinted on Bitcoin’s decentralized ledger, with a significant dip in both, the volume of inscriptions and associated fees.
Decline in Ordinal Numbers, Bitcoin’s NFT Sales and the BRC20 Market
Currently, with more than 35 million Ordinal inscriptions documented, the rapid influx we’ve been observing signals a deceleration. Last week, the talk of the Ordinal inscription slowdown came into the limelight, and the trend continues. The daily registration of Ordinal inscriptions has reached levels similar to those before April 20, 2023, when a total of 8,844 inscriptions were carved into the Bitcoin blockchain on a single day.
Post April 21, inscriptions escalated at a significant rate. The count jumped from a mere 1.24 million to an amazing 4.5 million inscriptions by May 7, 2023. On this particular day in May, a whopping 400,091 inscriptions were recorded within 24 hours. This momentum continued throughout the summer, cresting at 440,760 inscriptions recorded daily on September 15.
Yet, just ten days later, a dramatic change ensued. In addition, fewer fees are being paid to inscribers. To date, miners have pocketed around 2,120.92 BTC, or an estimated $59 million, from processing these inscription transactions. Digging deeper, the majority (52.6%) of these inscriptions fall under the category of “text/plain; charset=UTF-8,” amounting to approximately 18.54 million.
Just behind, 42.4% carry the label “text/plain,” equating to about 14.93 million inscriptions. Other significant mentions are 757,950 “PNG” image type inscriptions, 313,962 “JSON” type, 228,210 “WEBP” format, and 131,025 with the “SVG” tag. The slow-down in inscriptions has provided a respite to Bitcoin miners, allowing them to manage the enormous backlog of transactions accumulated over the last five months.
Ordinal inscription sales have shown a noticeable decline, with a significant decrease in sales since the end of June. Bitcoin currently ranks eighth in the non-fungible token (NFT), or Ordinal, sales realm. Over the past week, NFT sales centered around Bitcoin totaled $926,023, a sizable 58% decrease from the previous week.
However, it’s not all gloomy. BRC20 token market saw a minor increase of about 3% this week, achieving a worth of $180.31 million. Despite that, today’s BRC20 tokens have shed 0.6% within 24 hours. The ORDI token commands the largest market cap at $71 million, followed by DFUK at $46 million, and MOON ranking third with $23 million. It merits mentioning that ORDI has dropped by 87.81% from its pinnacle on May 08, 2023, while MOON declined by 71.20%. Over the last day, BRC20 tokens have experienced about $9.2 million in global trading volume.
Have any views regarding the Ordinal inscription slowdown? Don’t hesitate to share insights and opinions about this topic below.
Quantum AI Trading Bot: A Solution to Navigate Tough Times?
If the current market conditions are a concern, the Quantum AI Trading Bot can be a game-changer. Through machine learning and complicated algorithms, the Quantum AI Trading Bot can analyze market trends in real-time and execute trades with extreme efficiency. Regardless of market conditions, the Quantum AI bot ensures profitable trades and mitigates the risk. By automating the trading process, it also saves time and reduces the chances of human error. In these uncertain times, technology like our Quantum AI Trading Bot can be an invaluable investment tool to navigate market volatility, potentially turning thinning demand for Ordinal inscriptions to your advantage.
Frequently asked Questions
1. What factors contributed to Bitcoin’s recent ascend in value?
Bitcoin’s recent ascend in value can be attributed to several key factors. Firstly, there has been an increased adoption and acceptance of Bitcoin by major companies and institutional investors, which has instilled confidence in the market. Additionally, the ongoing economic uncertainty and inflation concerns have driven investors towards cryptocurrencies as a hedge against traditional assets. Lastly, the halving event, which reduced the rate at which new Bitcoins are created, has also played a significant role in pushing up the price.
2. Why did Bitcoin experience a pullback after its ascent?
The pullback in Bitcoin’s price after its ascend is a natural market phenomenon. As the price of any asset rises rapidly, it often prompts profit-taking by traders and investors. This selling pressure can cause a temporary decline in the price. Moreover, the volatile nature of cryptocurrencies makes them prone to sudden price corrections. Additionally, news events, regulatory concerns, or any negative sentiment in the market can also trigger a pullback.
3. How does the latest pullback compare to previous ones in Bitcoin’s history?
The latest pullback in Bitcoin’s price needs to be assessed in the context of previous pullbacks. While each pullback is unique, Bitcoin has experienced multiple significant price corrections throughout its history. These pullbacks are often followed by periods of consolidation or subsequent surges in value. It’s important to note that Bitcoin’s long-term trend has been largely upward, despite short-term pullbacks.
4. Should investors be concerned about Bitcoin’s pullback?
Investors should approach Bitcoin’s pullback with caution but not necessarily be overly concerned. Volatility is inherent to the cryptocurrency market, and pullbacks are expected. It is crucial to have a long-term investment perspective and not get swayed by short-term price fluctuations. Furthermore, investors should consider their risk tolerance and diversify their portfolios to mitigate potential losses.
5. Is Bitcoin’s ascend and pullback cycle predictable?
The ascend and pullback cycle of Bitcoin is not entirely predictable. While historical patterns and market analysis can provide insights, the cryptocurrency market remains highly speculative and subject to various external factors. Attempting to predict short-term price movements with certainty is challenging. It is advisable to focus on the overall trend and long-term potential of Bitcoin rather than trying to time the market based on short-term cycles.
6. How can investors take advantage of Bitcoin’s pullback?
Bitcoin’s pullback can present opportunities for investors. One strategy is to use the pullback as a buying opportunity, acquiring Bitcoin at a lower price with the expectation of future price appreciation. Another approach is to employ dollar-cost averaging, where investors consistently invest a fixed amount in Bitcoin over time, smoothing out the impact of short-term price fluctuations. However, it is important to conduct thorough research and seek professional advice before making any investment decisions.
7. What factors should investors consider before entering the Bitcoin market?
Before entering the Bitcoin market, investors should consider several factors. Firstly, they should assess their risk tolerance and investment goals, as the volatility of cryptocurrencies can lead to substantial losses. Additionally, understanding the fundamentals of Bitcoin, its technology, and the regulatory landscape is crucial. Investors should also be mindful of the security measures necessary to protect their Bitcoin holdings, such as using reputable cryptocurrency exchanges and implementing secure wallets.