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Bitcoin’s Inscriptions: Pioneering Block Fillers Or Precarious Miners’ Delight?

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Despite concerns that Bitcoin Ordinals are clogging the network, there is little evidence to suggest inscriptions are taking blockspace away from higher-value Bitcoin monetary transfers. On September 25, on-chain analytics firm Glassnode released “The Week On-chain” report, explaining minimal evidence of inscriptions displacing monetary transfers.

The Rise Of Inscriptions In Bitcoin

Since their introduction in February 2023, inscriptions have been a significant consumer of Bitcoin blockspace. Inscriptions can be considered a ‘packing filler,’ filling up any remaining space in blocks after higher-value monetary transfers are included. 

While fees and volume analysis typically consider the BTC volume being transferred and held, it’s essential to note that inscriptions may have a higher perceived ‘value’ beyond just their volume.

Despite the increase in fee revenue for miners due to inscriptions, the upcoming halving event may put significant income stress on miners unless Bitcoin prices substantially increase.

Introducing inscriptions in February 2023 marked a turning point in on-chain activity, mempool dynamics, and miner revenues. The mempool, a cloud of unconfirmed transactions awaiting inclusion in blocks, has experienced a surge in demand since February, coinciding with the release of Ordinals and Inscriptions.

The rise in text-based inscriptions, particularly due to the emergence of the BRC-20 token, has significantly contributed to the increased demand for blockspace. Inscriptions leverage the SegWit split data structure to fit more transactions into blocks, resulting in a daily confirmed transaction count exceeding 550,000.

Text-based inscriptions now make up a substantial portion of all transactions, accounting for 40% to 60% since May, surpassing image-based inscriptions. This surge has also led to a rapid expansion of the Unspent Transaction Output (UTXO) set.

While inscriptions have a significant presence in block space, they tend to pay relatively lower fees per byte, making them sensitive to absolute fee levels. They are readily displaced by more urgent monetary transfers, which pay higher fees.

The dominance of inscriptions has led to a collapse in the median transfer volume, with smaller investors and inscription users transferring smaller amounts. This trend has also resulted in higher fee rates relative to transaction value.

While miners’ revenues have been boosted due to increased block space demand, the competition among miners has also grown substantially. Hashrates have increased by 50% since February, putting downward pressure on the hash price, the BTC or USD reward earned per Exahash. Miners are facing increased income stress, with profitability at risk, especially with the impending halving event.

Related Reading |  Breaking: Binance Closes Russia Chapter With Historic Agreement

Bitcoin’s Thunderous Slump: Volume Drop Sparks Concerns

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Bitcoin, the world’s most popular cryptocurrency, is experiencing a significant downturn in trading volume. In fact, the current trading volume is at its lowest since March 2019. This decline in trading activity is closely linked to the steady decrease in the amount of Bitcoin available on exchanges, a trend that began nearly three years ago. These recent developments have triggered a series of critical indicators that merit close analysis.

Source: Santiment

One key indicator of Bitcoin’s market health is the Bitcoin NVT Signal (7-day Moving Average). This indicator has recently surged to a 7-month high of 1,595.862. To put this in perspective, the previous 7-month high was observed on September 26, 2023, at 1,595.673. The NVT Signal helps investors gauge whether Bitcoin is overbought or oversold relative to its on-chain transaction activity. The current high value suggests that the market may be entering a phase of overvaluation.

Source: Glassnode

Another significant data point to consider is the amount of BTC being held (HODLed) or lost. Recently, BTC HODLers have reached a 5-year high, with 7,893,256.940 BTC being held. This surpasses the previous 5-year high of 7,893,203.948 BTC observed on September 26, 2023. This increased HODLing activity could indicate a shift in market sentiment, with more investors choosing to hold onto their Bitcoin rather than actively trading it.

Source: Glassnode

Bitcoin HODLing Trend: A Key Market Driver

Several factors could explain these trends. The prolonged decrease in supply on exchanges suggests that investors are increasingly holding their Bitcoin, potentially in anticipation of future price appreciation. Additionally, regulatory developments and macroeconomic factors can influence trading activity and sentiment in the cryptocurrency market.

Furthermore, BTC’s dwindling trading volume, coupled with rising NVT Signal values and a surge in HODLing activity, highlights a complex and evolving market landscape. Investors should remain vigilant and consider a diverse range of indicators and factors when making investment decisions in the cryptocurrency space.

The market’s current dynamics may offer opportunities for those who can navigate the evolving landscape, but they also underscore the need for caution and a deep understanding of market trends.

Bitcoin’s Bold Prophet Tim Draper Defies Gravity Again

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In the fast-paced world of cryptocurrency, few figures have garnered as much attention and speculation as the Bitcoin maverick, Tim Draper, the legendary venture capitalist and founder of Draper University. Draper’s track record speaks for itself – he bet big on companies like Tesla, SpaceX, and Coinbase, reaping massive returns. However, his notoriety in the crypto space largely stems from his bullish prediction that Bitcoin would hit $250,000 by 2022 – a prophecy that ultimately fell short.

But don’t count Draper out just yet. He’s not one to shy away from a challenge, and he firmly believes that his second prediction could still come to fruition. As he states,

“The only reason I’ve given the second prediction was that the first one was so good. I had a lot of pressure to put another one out there.”

Draper’s request for an extended deadline until the end of June next year hints at his enduring faith in Bitcoin. He lays the blame for the delayed ascent of Bitcoin squarely at the feet of the U.S. government, which he accuses of overregulation, hindering the blockchain’s growth. Draper yearns for a “light touch” approach similar to the way Bill Clinton handled the internet, allowing it to flourish globally.

Draper’s $250,000 Bitcoin Prediction: A High-Stakes Ultimatum

Despite the media circus surrounding him, Draper remains a diligent investor, approaching opportunities with an alpha mindset. He likens his investment style to playing basketball, strategizing each move to anticipate success.

Draper’s rise to Twitter fame, on the other hand, was a gradual process. With a humble start of just one follower (his mother), he has steadily grown his following through consistent and value-driven content. Unlike some influencers, he eschews overloading his followers with daily posts, preferring to share meaningful updates about his startups or insights on the crypto industry.

Draper’s predictions are a hot topic, and he stands by his $250,000 Bitcoin projection. However, he issues a playful ultimatum,

“If it’s not $250,000 or higher, then don’t listen to me ever again on that kind of prediction.”

Regarding the prospects of a Bitcoin ETF approval, Draper remains skeptical, suggesting it may require a change in political leadership. He laments the potential hindrance caused by the government’s cozy relationship with traditional banks and hopes for a more enlightened perspective on cryptocurrencies.

In a space known for its volatility and uncertainty, Tim Draper continues to be an enigmatic figure whose predictions, whether realized or not, captivate the imagination of investors and enthusiasts alike. As we watch and wait for the next chapter in the Bitcoin saga, one thing is clear – with Tim Draper, surprises are always on the horizon.

Shiba Inu Takes On Stage: FCF Pay Pioneers Crypto Payments For HSBC Customers

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FCF Pay, a leading crypto payment processor, has unveiled an exciting opportunity for HSBC customers holding Shiba Inu (SHIB). Through a tweet, FCF Pay announced that HSBC users can now use cryptocurrencies to pay their mortgage bills and loans, leveraging the convenience and innovation of digital assets.

The move­ undertaken by HSBC unlocks a multitude of possibilitie­s for its customers. By enabling payments through various cryptocurre­ncies like Bitcoin, Ethere­um, Binance Coin, Ripple, Dogecoin, Shiba Inu, and more­, the banking giant takes a progressive­ step towards integrating digital currencie­s into traditional financial systems. 

It opens up alternative­ payment methods for users and e­xpands the horizons of their financial transactions. Later, they also clarified that their reference was specifically about XRP, not Ripple.

FCF Pay responds to community inquiries seeking confirmation and clarification. The­y emphasized that HSBC is just one of the­ nearly 21,000 companies accessible­ through their crypto bill payment service­. 

FCF Pay described their syste­m as a payment aggregator with a crypto payment gate­way designed to streamline­ the payment process for use­rs.

Shiba Inu Developers Tease the “Shiba Hub”

Meanwhile, in another exciting update for the Shiba Inu (SHIB) community, developers are working on an intriguing project known as the “Shiba Hub.” Lucie, Shiba Inu’s lead marketing strategist, shared an update about the app, describing it as “a gateway to something extraordinary.” 

The Shiba Hub is set to integrate with the recently launched Shibarium network and aims to revolutionize the community experience for SHIB enthusiasts.

While Lucie didn’t reveal all the details or provide a specific launch date, her hints have ignited speculation within the Shiba Inu community about the potential impact and innovations the Shiba Hub could bring to the ecosystem. This development adds to the growing excitement surrounding the SHIB community.

Despite these developments, Shiba Inu’s price is currently experiencing a downward trend. According to the latest data from CoinMarketCap, the coin price stands at $0.000007, with a 24-hour trading volume of $57,778,171, a nearly 20% decrease. The value has also declined by 0.93% in the last 24 hours and 2% in the weekly chart.

Source: CoinMarketcap

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Bitcoin: Unfazed by DXY’s 10 Month High – Here’s Why

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Bitcoin has become a focal point of concern among investors due to recent surges in the Dollar Strength Index (DXY). While it is crucial to recognize these shifts, the apprehensions regarding the instant influence of the robust U.S. dollar on BTC may be exaggerated, especially in the long run.

The DXY reached a ten-month high on September 22, reflecting growing confidence in the U.S. dollar compared to other major fiat currencies. It also confirmed a golden cross pattern, often considered a precursor to a bull market by technical analysts. However, several factors suggest that the relationship between the DXY’s strength and BTC is more nuanced than it appears.

Firstly, the DXY’s rise comes despite concerns about inflation and economic growth in the United States. This paradox indicates that not every increase in the DXY reflects heightened confidence in the U.S. Federal Reserve’s economic policies. In fact, investors seem to be preparing for the possibility of a looming recession or surging inflation, as evidenced by their preference for holding cash over U.S. Treasuries.

Bitcoin’s Fate Amid Fed’s Rate Hikes

Investors anticipate that the Fed will continue to raise interest rates to capture higher yields in the future. If they lack confidence in the Fed’s ability to curb inflation without causing significant economic harm, a direct link between a stronger DXY and reduced demand for Bitcoin may not be as clear-cut as some believe.

Moreover, the ongoing increase in the money supply due to the government raising the debt ceiling could benefit BTC. Scarce assets like Bitcoin may perform well in an environment where nominal returns are diluted by a growing money supply, especially during economic slowdowns.

Additionally, as inflation and recessionary pressures persist, investors may seek refuge in alternative assets like Bitcoin to protect against “stagflation” – a scenario characterized by stagnant economic growth alongside rampant inflation.

In conclusion, while concerns over the DXY’s impact on Bitcoin are valid, the relationship between the two is more complex than it might seem at first glance. The DXY’s strength may not necessarily be a net negative for Bitcoin, particularly in the long term.

As economic uncertainties persist and liquidity increases in the markets, Bitcoin’s role as a hedge against inflation and recession could become even more pronounced, potentially offsetting any short-term fluctuations caused by a stronger U.S. dollar. Investors should consider these dynamics when evaluating the future of both the U.S. dollar and Bitcoin.

Bitcoin’s Mysterious Buyer & Exciting Bull Run: Crypto Analysts Insights

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Crypto Rover, a prominent cryptocurrency analyst, has shed light on the rapidly decreasing availability of Bitcoin on major exchanges over the past 30 days. According to the data, Binance witnessed a significant decrease of 11,500 BTC, while Coinbase reported a decrease of 1,100 BTC. 

Other exchanges collectively saw a decrease of 3,500 Bitcoins. The big question on everyone’s mind is: who is behind these substantial purchases, with speculations swirling around BlackRock?

Analyst Crypto Simon chimed in on this matter, suggesting that while BlackRock is a potential buyer, it could also be other institutional investors or individual holders looking to diversify their portfolios. The mystery surrounding the buyer’s identity adds an element of intrigue to the ever-evolving cryptocurrency market. Speculations are rife, with mentions of Microstrategy, China, and BlackRock circulating in the community.

In a subsequent tweet, Crypto Rover shared some compelling reasons for the excitement surrounding the upcoming BTC bull run. With only 1.83 million BTC available on exchanges, the introduction of a Bitcoin spot ETF, the impending Bitcoin halving, and potential rate cuts and quantitative easing measures from The Fed, the stage seems set for an exhilarating ride in the world of cryptocurrencies.

Bitcoin’s Trajectory: 2022 To 2025

Rover also provided insights into BTC’s trajectory in the coming years. In 2022 and 2023, factors like global conflicts, interest rate hikes, crashes in other cryptocurrencies, SEC-related uncertainties, and the Evergrande bankruptcy are expected to impact Bitcoin’s performance. Looking ahead to 2024 and 2025, a spot ETF introduction, further rate cuts, quantitative easing, and another Bitcoin halving are on the horizon.

However, technical analyst Cryptorphic delved into the Bitcoin halving roadmap in a separate tweet. Noting previous halvings in 2012, 2016, and 2020, Cryptorphic projected the next halving to occur around April 25, 2024, and estimated it could last 478 to 512 days. 

Based on fractals and chart data, Cryptorphic predicted that BTC’s next bull market peak would likely be in September 2025, with a target price of approximately $115,123—a remarkable 330% increase from the current market price.

Related Reading | Shiba Inu Forecast: Machine Learning Tool Foresees SHIB Price on October 1

Crypto Exodus: 6 Weeks Of Consecutive Outflows Raise Alarms Amid Shifting Sentiment

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Crypto investment products have reported their sixth consecutive week of outflows, according to data from CoinShares, raising concerns among investors as the digital asset market faces challenges and shifting sentiment between regions.

For the week ending September 24th, the total outflows from digital asset investment products amounted to $9 million. This prolonged streak of outflows reflects a cautious approach among investors in the cryptocurrency space as the market grapples with regulatory uncertainty and other factors.

This week’s notable development was the significant sentiment divergence between European and US investors. While European investors seized the opportunity presented by recent regulatory disappointments, pouring in a total of $16 million, their counterparts in the United States withdrew $14 million.

This contrasting sentiment highlights the varying attitudes towards cryptocurrency investments in different parts of the world.

Altcoin Space Attracts Discerning Crypto Investors

Amidst the outflow trend, the altcoin space has a silver lining. Investors are displaying discernment by directing their funds towards specific cryptocurrencies. Notably, XRP and Solana have continued to garner investor interest, with inflows totaling $0.66 million and $0.31 million, respectively.

Bitcoin saw minor outflows for the third consecutive week, totaling $6 million. Additionally, short-Bitcoin investment products experienced outflows of $2.8 million. While there was a brief influx of $15 million into short-Bitcoin products earlier in the month, this appears to have been an isolated event. 

Over the past 22 weeks, outflows have dominated, amounting to a substantial 78% of assets under management (AuM), indicating that investors may be relinquishing their short positions.

Ethereum has faced a similar fate to Bitcoin, with outflows for the sixth consecutive week totaling $2.2 million. The challenges faced by Ethereum and the broader altcoin market have also affected multi-asset investment products, which have witnessed a consistent trickle of outflows throughout the year. The total outflows for these products have now reached $32 million for the year to date.

In all, the cryptocurrency market continues to experience turbulence, with investors carefully assessing their options and making selective investments. However, the enduring appeal of specific altcoins like XRP and Solana demonstrates that investors are still finding opportunities amidst the challenges.

Related Reading | Crypto Cold Storage Surge: Bitcoin Investors Go Offline Amid Market Turbulence

MicroStrategy’s $147.3M Bitcoin Acquisition Dominates Crypto Trends

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Santiment, a well-known analytics platform, has reported that the keyword “MicroStrategy” is currently the hottest topic in the crypto world. This surge in interest comes on the heels of the company’s significant acquisition of 5,445 Bitcoins, worth approximately $147.3 million.

The company’s de­cision to acquire a significant amount of BTC has undoubtedly caused a stir within the­ crypto community. This move has sparked increased discussions and interest in the firm, with the­ keyword “MicroStrategy” dominating conversations re­lated to cryptocurrency.

The acquisition occurred just six days before Bitcoin’s impressive surge, propelling it above the $30,000 mark. This strategic move by MicroStrategy not only reflects the company’s continued confidence in the cryptocurrency but also reaffirms its position as one of the prominent institutional players in the digital asset space.

MicroStrategy’s Ongoing Commitment To Bitcoin

The revelation of this significant acquisition emerged yesterday when MicroStrategy disclosed its latest crypto investment. The company acquired 5,445 BTC at an average price of $27,053 per Bitcoin. 

As of September 24, MicroStrategy’s Bitcoin holdings stand at an impressive 158,245 BTC, acquired at an aggregate purchase price of approximately $4.68 billion, with an average purchase price of roughly $29,582 per Bitcoin, considering fees and expenses.

According to an official statement released by MicroStrategy on September 25, 2023, the acquisition occurred between August 1 and September 24. 

The company and its subsidiaries spent approximately $147.3 million in cash for these Bitcoins. This strategic move aligns with MicroStrategy’s ongoing commitment to Bitcoin as a significant asset in its corporate treasury.

As part of a relate­d financial maneuver, on August 1, MicroStrategy e­stablished a Sales agreement with Cowen and Company, LLC, Canaccord Genuity LLC, and Be­renberg Capital Markets LLC. In this agre­ement, they we­re appointed as sales age­nts.

This agreement allowed the company to issue and sell its class A common stock shares. The aggre­gate offering price could reach up to $750.0 million through the Agents.

On Septe­mber 24, the company successfully issue­d and sold a total of 403,362 Shares under this Sales agreement. After accounting for sales commissions, this accomplishment resulted in net procee­ds of approximately $147.3 million for the company.

In June­ 2023, the firm garnered atte­ntion by acquiring 12,333 BTC for $347 million, at an average purchase price­ of $29,668 per BTC. However, its re­cent acquisition further solidifies its optimistic outlook on Bitcoin. 

Crypto Cold Storage Surge: Bitcoin Investors Go Offline Amid Market Turbulence

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A recent significant shift in Bitcoin storage practices has caught the attention of analysts. Crypto Rover, a prominent cryptocurrency analyst, recently took to Twitter to highlight a noteworthy trend: Bitcoin is being withdrawn from exchanges and moved into cold storage at an unprecedented rate. 

The shift towards self-custody of BTC signifies a growing preference among investors to secure their assets offline in wallets and hardware devices rather than keeping them readily available on crypto exchanges. 

However, the potential selling pressure on the market is expected to decrease. This move is seen as a strategic move to HODL and ride out the turbulence in the crypto market, as opposed to panic selling during bearish phases.

Bitcoin’s Potential Surge to $200,000: Six Reasons Why

Not content with one revelatory tweet, Rover went on to speculate about the potential impact of the approval of the BlackRock Spot ETF. In a bold prediction, he suggested that Bitcoin could soar to heights exceeding $200,000 if the ETF garners the green light from regulators. 

His argument is backed by six compelling reasons that highlight the imminent possibility of this approval.

Firstly, Rover points out that BlackRock boasts an impressive track record of ETF approvals, with a staggering 99.8% success rate. Only one rejection in its history underscores the company’s expertise in navigating the regulatory landscape.

Secondly, during the tumultuous waters of the 2008 financial crisis, both the U.S. government and the Federal Reserve turned to BlackRock for guidance. This fact speaks volumes about the level of trust in the world’s largest asset manager, making it a formidable player in the cryptocurrency market.

Furthermore, the CEO of BlackRock has recently expressed a favorable stance on Bitcoin, likening it to “digital gold” and emphasizing its potential as a diversification tool within investment portfolios.

Adding to the intrigue, BlackRock has previously introduced a private Bitcoin ETF catering to institutional investors, showcasing their interest and expertise in the crypto space.

Moreover, spot Bitcoin ETFs have already gained regulatory approval and are active in both Europe and Canada, indicating a growing acceptance of these financial instruments.

Last, other major asset management firms such as Vanguard and Fidelity have submitted their own applications for Bitcoin spot ETFs during this cycle, further underscoring the rising institutional interest in cryptocurrency.

Related Reading | Bitcoin ETFs Await SEC Decision As Second Deadline Nears

Bitcoin Investors Await $300 Billion Boost, As Per Morgan Creek CEO

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A few hours ago, Bitcoin experienced a drop below the $26,000 mark, reaching a low point of approximately $25,987. Nonetheless, within the cryptocurrency community, there is a prevailing belief that Bitcoin’s intrinsic or “fair value” far exceeds its current market price. Mark Yusko, who is the founder and CEO of Morgan Creek Capital Management, asserts that the true fair value of the largest cryptocurrency currently stands at $100,000, despite its market trading in the range of $25,000 to $26,000.

Yusko supports his valuation by drawing on historical patterns. He highlights that in previous instances, Bitcoin’s value surged from $100 to $1,000, and subsequently from $1,000 to $10,000, in response to halving cycles. In fact, he characterizes these substantial increases as “parabolic blow-off tops.”

Bitcoin’s Track Record: 86% Profitability for HODLers

In early September, Dylan LeClair, from UTXO Management, highlighted an interesting observation regarding Bitcoin. He pointed out that a significant portion of BTC’s circulating supply had remained untouched during the course of one month. Specifically, within this timeframe, only 5.4% of the circulating BTC supply had been actively transacted, marking an all-time low. Conversely, a substantial 94.6% of the supply remained dormant, reflecting a pattern where BTC was being held for the long term by its owners. This observation aligns with the notion that a majority of Bitcoin’s supply is either held by long-term investors or has been inactive for extended periods.

Moreover, LeClair anticipated that regulatory approval for spot Bitcoin Exchange-Traded Funds (ETFs) would likely materialize either by the end of 2023 or the beginning of 2024. This regulatory development is expected to trigger a notable influx of capital into the cryptocurrency market. According to Mark Yusko, an executive at Morgan Creek, this influx could potentially reach approximately $300 billion. This influx, combined with the high percentage of dormant BTC supply and the limited amount available for trading, is expected to have a substantial impact on Bitcoin’s price. Yusko emphasized that with “a $300 million inflow on top of a $100 million free float, the price is poised to increase significantly.”

Bitcoin

It’s worth noting that, over the 4,787 days since Bitcoin’s inception, BTC holders have found themselves in a profitable position for roughly 4,107 days. Data from Look into BTC reveals that, relative to the current price, investors have experienced profitability on approximately 85.8% of those days.