- Bitcoin’s blocks reached their maximum capacity.
- Miner earnings fell while the hash rate increased.
Since reaching the $30,000 price threshold, Bitcoin’s price has been [BTC] been the subject of intense speculation. While many holders remain optimistic about the future of the King Coin, there are growing concerns about its stability.
From blocks to bubbles
According to Messari, Bitcoin’s blocks were reaching their maximum capacity at the time of writing, causing congestion and an inability to handle additional transactions.
This congestion has historically been observed during speculative bubbles in the Bitcoin market, where the increased demand for transactions has overwhelmed the network.
Source: Messari
However, a significant change has occurred in the composition of these blocks. In the past, blocks were mainly filled with transactional activity. But the blocks have been filled with inscriptions since the introduction of the NFT.
The impact of this shift on the future price of BTC remains uncertain.
In recent observations, the volume of Ordinals traded on exchanges had decreased, as reported by Dune Analytics. This can affect miners’ earnings.
Notably, data from Blockchain.com showed that miner revenue fell from $41.744 million to $26.178 million over the past month.
Source: Dune analysis
At the same time, Bitcoin’s hashrate witnessed an upward trend during this period. The growing hashrate has a positive impact on the security and efficiency of the network.
However, it also leads to more competition among miners, potentially impacting individual profitability and concerns about centralization.
Source: Blockchain.com
What are Bitcoin holders up to?
Bitcoin holder behavior showed interesting patterns. The number of holders on various exchanges increased, indicating an increasing interest in acquiring and holding BTC.
Glassnode has conducted a comprehensive review of cumulative Bitcoin holdings on the three leading cryptocurrency exchanges over the past three years.
The findings show significant growth in Binance and Bitfinex’s Bitcoin balances, with notable increases of 421,000 BTC and 250,000 BTC, respectively.
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Coinbase, on the other hand, experienced a decrease in its reserves, with a decrease of 558,000 BTC.
Source: Glassnode
These shifts in holder behavior and distribution of BTC across exchanges could have implications for the overall Bitcoin ecosystem.
