Bitcoin transactions may become more and more expensive due to the new Bitcoin NFT fever.While some are already ringing the alarm bells, other analysts have discovered another rarely seen optimistic sign on the chart.
The week’s most important cryptocurrency news in one place
The European digital wallet has been given the green light, and its main area of use will be identification in public and private services in the EU.It is an online identity provided and managed by the European institutions that contains all the personal data of citizens.Among other things, Europeans will have to use their wallets for tax returns, opening bank accounts and checking into hotels, presumably sometime after 2024.
Bankrupt crypto lender Celsius announced in a statement that it will resume payments to its eligible users.
The platform plans to contact people using emails and in-app notifications.However, no exact date has been given for the resumption of payments.We also learned that the feature will initially only be available to customers in the
United States, while international users will have to wait for further court decisions.
Bitcoin NFT is the new hype, but what does it all mean?
There has been a lot of noise and questions lately about Ordinal Inscriptions, which can be used to create Bitcoin NFTs.
Ordinal numbers are non-fungible tokens (NFTs) that are placed on the Bitcoin blockchain.Although the
technology has been around for some time, the crypto community picked up the topic in recent weeks, as the first NFTs worth over a hundred thousand dollars appeared.
Proponents of the cause believe that Ordinal Inscriptions could bring about significant change in the bitcoin community and improve the
technology behind NFTs.
But will this ultimately be good or bad for bitcoin?
Increasing block size, more expensive transactions
What we see so far is not very positive.Statistics show that blocks larger than 3 MB are becoming more common.The trend started on February 1, 2023, when the American company Luxor mined the largest block of the Bitcoin blockchain ever measured.The record block (
774 628.
number), which was 3.96 MB in size.
One of the direct consequences of Satoshi’s NFT promotion on the Bitcoin blockchain is that the mining fee for BTC transactions started to rise.After all, in essence, digital mementos compete with bitcoin transactions originally designed for use for the finite storage space per block.And miners prefer transactions that pay higher sats/KB to get into the next block.
In a February 13 report, Glassnode explained that for the first time in Bitcoin’s 14-year history, a portion of network activity was used for non-peer-to-peer monetary Bitcoin (BTC) transfers.
Future of Bitcoin NFT
There has been a lot of debate in the past about whether block space is being used well.The challenge is that as more and more ordinals are added to the blockchain, the cost of bitcoin transactions also increases.
Question, what should we turn the blocks into? For capturing kitten pictures as NFT or validating financial transactions.
The current situation, if it continues in this direction, may call into question the use of bitcoin as a currency.All satoshis must be equal in order to be used as money, otherwise bitcoin may lose this feature.
For example, here are the collectible coins.While the face value of a cent may be exactly one cent, the year of design and mintage may value a cent coin for much more in the eyes of some observers.
Ultimately, the market will decide how this will develop in the future.However, the conversation about a soft or hard fork can even start again if the ordinals sufficiently divide the community.
A rarely seen bull market signal appeared on the chart
According to some analysts, a very positive pattern has appeared on the bitcoin chart.
So positive that it’s too good to be true.
Crypto market analyst Mohit Sorout reported that the dollar cost average (DCA) indicator is again predicting a brutal rise.
Buy signals are rare, with Sorout only finding three similar moments in Bitcoin’s history, all of which saw significant BTC price gains.In 2015, 74x, 1.6x in 2019, and 6.4x growth in 2020 were pocketed by those who traded on the basis of the indicator.
And now, for the fourth time, the indicator indicates what the analyst simply refers to as “the mother of all bull market signals”.
DCA, or Dollar Cost Averaging, is an investment strategy in which the buyer allocates a fixed fiat amount of capital to the investment to gain exposure to an asset at specified intervals.This could be $10 worth of bitcoin purchases per week, which allows the customer to buy whether the market is up or down.
The DCA indicator measures the relative profitability of a hypothetical DCA strategy that involves buying $1 per day for one year.Once it crosses into profitable territory, marked 365 on the scale, historically large bull markets have begun.
Except for mid-2022, when the move above 365 later reversed and BTC/USD began its journey to multi-year lows near $15,600.Thus, like all indicators, it is worth treating it with reservations.
The signs of the Bitcoin bull run are not pointing upwards from all directions yet.On the one-week chart, the 50-day and 200-day moving averages formed a death cross for the first time this month – which, as the name suggests, does not bode well.
Currently, the $22,800 level is the key area for bitcoin to hold if we look for the next higher low (HL) on the BTC/USD chart.
On the other side, the Binance BTC/USD order book has resistance among traders up to $25,600 – the level above which traders are less likely to place orders.
People are stuck in the mindset of the last 18 months and because of that they can only expect further decline.This may be the reason why they are constantly on the short side.
Altcoin News
The
world’s largest crypto exchange has turned to an alternative stablecoin following a crackdown on Paxos and Binance USD (BUSD).
At the beginning of the week, the New York Department of Financial Services initiated proceedings against Paxos Trust, calling on the company not to put new BUSD coins into circulation.As a result of the announcement of the news, the exchange rate broke away from the USD 1:1 exchange rate.
The winner of the case was the True altcoin, whose price skyrocketed because Binance switched to issuing True USD (TUSD) in response to US regulatory action against its stablecoin BUSD.
On February 16, the
world’s largest crypto exchange hit 50 million TUSD, according to blockchain sleuths.True USD was launched in 2018 and listed on Binance in May of that year.
TUSD is the sixth largest stablecoin, but the coin of the ecosystem, with a market share of less than 1% with a turnover of $973 million.Since the beginning of this year, TUSD circulating supply has increased by 29%.
Funny thing is, the on-chain data shows that Alameda Research and Justin Sun are the two biggest minters of TUSD.Alameda has minted a total of $1.64 billion TUSD in history, and Justin Sun has minted $889 million TUSD.Still, Binance’s 50 million entrants caused a 200% price jump this week..
