Bitcoin [BTC]: Interest in Ordinals is rising, but is R&D on the way?

• Interest in Bitcoin Ordinals continued to increase.
• R&D and speculation surrounding the US government and Mt.GOX wallets affected trading behavior.

At their first introduction, Bitcoin [BTC] inscriptions garnered significant attention from the cryptocurrency community. This led to speculation that the hype would be short-lived and interest in ordinals would soon wane.

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Out of the ordinary

At press time, however, inscriptions appeared to exceed one million. This represented about 6% of the total activity on the Bitcoin network.

Source: Dune Analytics

Consequently, the fees associated with ordinals paid to miners rose. This resulted in a decrease in selling pressure on ordinals.

Source: Dune Analytics

Due to these factors, Bitcoin miners started to see growth in terms of revenue generated in recent days, according to blockchain.com

Speculation is starting to rise

However, R&D surrounding Bitcoin may soon hinder this growth. Recently, there were speculations around that large transactions were made by the BTC wallets of the US government and Mt.Gox custodians.

For context, Mt. Gox once the largest Bitcoin exchange in the world before it filed for bankruptcy in 2014. The exchange suffered a massive security breach that resulted in the loss of 850,000 bitcoins, worth around $460 million at the time.

The court appointed Nobuaki Kobayashi as trustee to oversee the fair and transparent distribution of the remaining assets and funds to the exchange’s creditors.

In addition, Kobayashi sold a significant amount of the remaining bitcoin over the years to repay creditors. He currently has a significant number of bitcoins that will be distributed to claimants.

Many stated that the FUD surrounding the government transactions has led to the recent decline in BTC prices.

It should be noted that the US government was the largest holder of Bitcoin at press time. According to Glassnode’s datathe US government and the Mt.Gox trustee held 205,514 and 137,890 BTC respectively.

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Based on our labels on @glassnodeneither USG nor Mt Gox use coins from addresses we monitor.

Stay safe out there folks. pic.twitter.com/O5CZ0VtrYh

— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) 26 April 2023

How much is 1,10,100 BTC worth today

This R&D also affected trading behaviour. As the expiration date of 105,000 Bitcoin options approaches, GreeksLive’s data showed that these options have a Put Call Ratio of 0.85.

Furthermore, this ratio suggested that there are more investors betting on a fall in Bitcoin’s price. The options also have a maximum pain point of $27,000, which is the price level at which option holders will face the most significant financial loss. The estimated total value of these options was $3.1 billion.

Source: coinglass