Bitcoin prices reach new highs – Will this trend continue?

Journalist

Posted: November 22, 2023

• Bitcoin price reached new highs, supported by Ordinals and Inscriptions.
• The number of addresses in profit continued to rise.

As Bitcoin[BTC] continues to rally after recovering from a bearish market, many traders have turned optimistic.

A spike in price

A new day brings fresh records for Bitcoin holders. The realized price hit a year-to-date high, and the short-term holder realized price also reached a YTD peak.

The STH RP saw a 3% surge, marking its highest point since May 2023.

Source: glassnode

Ordinals play a role

Bitcoin’s daily fees are on the verge of reaching unprecedented levels, posing a potential threat. Over the last week, the Bitcoin network accrued over $52 million in fees, amounting to nearly 25% of miner revenue during that period.

The driving force behind this surge is the Ordinals Protocol.

Bitcoin daily fees are threatening to surge to new all-time highs.

Over the last week, the Bitcoin network has seen over $52m in fees — representing nearly 25% of miner revenue during that period.

The catalyst?

Ordinals Protocol.

This is a big deal because fees need to… pic.twitter.com/R5APks4EOr

— Michael Nadeau (@JustDeauIt) November 20, 2023

Ordinals is a fresh protocol for Bitcoin, something new for a network used to only having its native asset BTC.

Unlike Ethereum, which introduced various 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’re like NFTs but with a twist. These digital artifacts, be it text, images, videos, or mp3, are directly inscribed into a sat, the smallest Bitcoin denomination.

This is important because the data is on-chain, making it unchangeable and easy to verify. The interest in both Ordinals and Inscriptions played a key role in BTC’s growth.

Source: Dune Analytics

Will holders sell

The high activity on the Bitcoin network allowed miners to collect more revenue. This allowed the selling pressure on the miners to decline, thereby supporting the price movement of BTC.

At the time of writing, BTC was trading at $37,196.35. In the last 24 hours, the price of BTC grew 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 holding Bitcoin had started to grow.

Profitable addresses are more incentivized to sell their holdings, which could cause a slight downward pressure on BTC’s ongoing momentum.

Source: Santiment