Bitcoin [BTC]: How Ordinals and Miners Slammed Prices

• The Puell Multiple calculation was at a 14-month high at press time.
• Ordinals have also helped the transaction count metric increase in recent weeks.

Many causes have contributed to Bitcoins [BTC] recent and sustained price increase. Firstly, of course Ordinal’s development is a factor, but so is the miners’ decline in BTC sales due to increased revenue. Ok, but how does it all fit together?

Read Bitcoins [BTC] Price prediction 2023-24

The ordinals effect

The utility of the Bitcoin blockchain took on a new level with the introduction of Ordinals and its NFT-like operations. According to the findings of Dune Analytics, over 155,000 Ordinals inscriptions have been completed to date. In addition, Ordinal’s daily inscription chart revealed that there has been an average of 5,000 new inscriptions per day.

Source: Dune Analytics

Ordinal contributes to the number of transactions

The Bitcoin blockchain’s measure of the number of transactions has also been affected by the increase in the number of Ordinals created, according to a mail by Glassnode. Although the current number has decreased at the time of writing, the overall level was improving, according to Santiment’s data.

More than the volume seen since August, the indicator for the number of transactions showed an upward trend. However, the number was down to around 115,000 at the time of writing.

Source: Sentiment

Bitcoin Miner Sales Are Declining

One way to evaluate Bitcoin’s current market value compared to its recent production costs is via the Puell Multiple. It considers the current market price of Bitcoin and the “Bitcoin Mining Reward”, the rate at which new Bitcoins are created daily.

Source: CryptoQuant

Since miners are the only entity with a consistent cost, like powering energy, this indicator has historically been perfect for identifying Bitcoin’s bear market periods. The current Puell Multiple value is about 0.9, the highest over a year per CryptoQuant.

According to statistics compiled by Blockchain.com, miners’ profits have risen in recent weeks. Bitcoin’s price surge to the $24,000 region has boosted miners’ profits. Revenue was over $24,000 at the time of writing, down slightly from last month but still at an eight-month high.

With increased profits, miners are under less pressure to offload their goods to recoup production costs. As a result, stability in Bitcoin’s price was inevitable after the selling pressure from miners subsided.

Source: Blockchain.com

How much is 1,10,100 BTC worth today?

How it all fits together

The stability of Bitcoin can be attributed to the recent increase in transaction speed, which the price of Ordinals’ Inscription has affected. BTC’s current strength has led to an increase in the Puell Multiple measures, which indicated less selling pressure from miners. As their income increases, the urge to sell lessened.

Ultimately, these indicators are tied to the fluctuations in BTC’s price.