Bitcoin is clearing through unconfirmed transaction stacks, but still at historical highsPrice:In the debate over the role of Bitcoin and concerns about halving, Bitcoin and Ethereum have started to remain flat in East Asia; Cobo's data indicates that market confidence is recovering, while Bybit links the surge in memecoin to reinvestment and warns that if Bitcoin fails to stabilize above $30000 after halving, it will have an impact on mining.opinion:The reduction in Bitcoin congestion has affected the rise of counterfeit coins, while the demand for BRC-20 tokens has led to high fees and increased miners' income without new users, which may change the relationship between Bitcoin and Ethereum and its market dynamics
Bitcoin is clearing through unconfirmed transaction stacks, but still at historical highs
Price:In the debate over the role of Bitcoin and concerns about halving, Bitcoin and Ethereum have started to remain flat in East Asia; Cobo's data indicates that market confidence is recovering, while Bybit links the surge in memecoin to reinvestment and warns that if Bitcoin fails to stabilize above $30000 after halving, it will have an impact on mining.
opinion:The reduction in Bitcoin congestion has affected the rise of counterfeit coins, while the demand for BRC-20 tokens has led to high fees and increased miners' income without new users, which may change the relationship between Bitcoin and Ethereum and its market dynamics.
Bitcoin and Ethereum both started the East Asian trading day flat, with the world's largest digital asset falling 0.6% to $27037, while Ethereum rose 0.4% to $1824.
According to the AUC data of institutional custodian Cobo, confidence in the cryptocurrency market reached its lowest point in February 2022 and has since rebounded rapidly since March. Cobo's AUC has rebounded to November 2022 levels, indicating that funds are returning to the market, the company shared with CoinDesk in a report.
The recent surge in memecoins has been accompanied by a decline in general interest in cryptocurrencies (measured by Twitter and YouTube analysis), indicating that these capital inflows may be the result of investors taking turns profiting from the strong performance of cryptocurrencies year-to-date, "CharmynHo, head of encryption insights at Bybit, said in a report to CoinDesk.
Ho wrote that there may still be room for further depreciation, and these ranges represent attractive overweight areas for long-term holders.
At the same time, macroeconomics remains a decisive part of the Bitcoin story. However, there is controversy over whether Bitcoin is a means of storing value or a risk hedging tool, and it will not be resolved in the short term.
Then it's halved. It is expected that at some point in early 2024, this will be considered the next chapter in the pricing narrative. But Cobo CEO Mao Shixing disagrees.
From an economic perspective, halving Bitcoin has not yet had a significant impact, but it is a good narrative logic, "he told CoinDesk in a report.
He pointed out that one thing that needs attention is its potential impact on miners.
The S19 mining machine remains the mainstream choice for miners. However, he told CoinDesk that if the price of Bitcoin does not stabilize above $30000 after the next planned halving event next year, these mining machines will inevitably have to stop operating.
opinion
Bitcoin is clearing the unconfirmed transaction pile, but it is still at a historical high
Congestion on the Bitcoin blockchain leads to BinanceTemporarily disabled withdrawals twice last weekBut the congestion has eased, with the number of unconfirmed transactions reaching a historic high of slightly over 450000 from last weekReduce to 260000.
This loose policy has weakened the rise of counterfeit Bitcoin, Bitcoin Cash (BCH), and Bitcoin SV (SBV). Due to the congestion of Bitcoin, investors have invested funds in alternatives, and both have seen gains last week. Bitcoin continues to maintain its 1MB block size. In contrast, the block sizes of Bitcoin Cash and Bitcoin SV have expanded to 32MB and 128MB, respectively. Therefore, the transaction costs provided by these two protocols are significantly lower than those of the Bitcoin protocol.
As this episode concludes, we can review the final statistics of the fees paid during the Ordinals rebound in Bitcoin,As Glassnode pointed outThis is huge.
Due to the surge in demand for block space for BRC-20 tokens, the cost is significantly higher, with an average cost per blockOnly for the fifth time in Bitcoin history has it exceeded block subsidies
At the same time, transaction volume also reached a historic high of 682000 transactions, a 39% increase from its peak in 2017.
But will this bring new users? Not really. Despite a surge in trading activity, the number of active addresses has decreased, indicating a trend for BRC-20 users to reuse Bitcoin addresses.
A question in the minds of many people is whether introducing BRC-20 driven tokens and NFTs into Bitcoin will change the relationship between Bitcoin and Ethereum.
As previously reported by CoinDeskThe 30-day rolling correlation between the prices of Bitcoin and Ethereum has dropped to 77%, the lowest level since 2021, indicating that these two largest cryptocurrencies may be decoupled for a long time.
This weakened correlation may promote the trading activity of the Bitcoin Ethereum pair on major exchanges, creating new opportunities for traders to capture the relative value between the two without involving the US dollar.
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