Ordinal NFTs Drive Bitcoin Network Activity But Derivatives Metrics Reveal…

  • BTC gets the limelight after ordinal NFTs were revealed.
  • The derivatives market is sending mixed signals as volatility subsides.

We recently looked at how a JPEG NFT forms the largest block on the Bitcoin blockchain network. It has now been revealed that approximately 13,000 ordinal NFTs have been launched on the Bitcoin network.

Read Bitcoin price prediction 2023-2024

Ordinal NFTs have received mixed reactions in the crypto community. Some believe that this exploration of the Bitcoin network is a step in the right direction that could provide more opportunities in the future.

Others argue that this move goes beyond what bitcoin stands for. However, the bottom price of these NFTs has gone up.

The potential impact of the presence of NFTs on the network is perhaps the biggest concern. Will this slow down the network or make it more congested? The Ethereum network has faced such challenges in the past which have affected the price of ETH.

In most cases, network congestion translates into higher demand and this can send positive vibes to the native cryptocurrency. Is such a scenario plausible for Bitcoin? Let’s take a look at what we know so far. Average Bitcoin transaction volume is currently at a four-year high.

The state of the bitcoin derivatives market

The Bitcoin derivatives market has been a good indicator of the state of the market in the past. It can provide insight into the current state of BTC.

BTC open interest has managed to maintain an upward trajectory, which confirms that there is still a certain level of demand for BTC in the derivatives market.

Source: CryptoQuant

Bitcoin funding prices have fallen despite the rise in open interest. This is a reflection of market indecision, especially as volatility eases.

At the same time, market indicators show that the demand for leverage is gradually increasing. This is most likely because low volatility has forced investors to look for other ways to increase their earning potential.

Bitcoin derivatives metrics

Source: CryptoQuant

Eliminations were still relatively low at the time of publication, but there has been a significant increase in long liquidations over the past 24 hours. Short liquidations declined over the same period as the bears gained more control.

What is the value of 1,10,100 BTC today?

The cryptocurrency is stuck in a narrow range ($22,400 and $22,200). The market has seen some decline in recent days despite the bullish signs like the golden cross and the lower RSI.

Bitcoin price movement

Source: TradingView

The current outlook is that any further bearish outcome could send BTC as low as $22,500 which is within the nearest support range. On the other hand, another rally could lead to a retest of the $24,000 resistance.

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