Bitcoin: Sats name witnessed success, but what lies in the name
- Bet name on the Bitcoin network saw massive interest after the introduction of Inscriptions.
- Meanwhile, traders are turning bearish on BTC following the OPEC announcement.
After the introduction of Inscriptions to Bitcoin, there has been an increase in the number of use cases of the Bitcoin network. One of the interesting use cases has come to be the Sats names – quite similar to ENS domain names on Ethereum.
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These naming systems allow users to assign human-readable names to their crypto addresses. According to Messari’s data, Sats names within two weeks accounted for a total of 15% of the names registered by ENS in the fourth quarter of 2022.
Source: Messari
Bears scared?
Due to the interest in Sats names, the overall activity on the Bitcoin network increased. Nevertheless, traders’ sentiment shifted towards the bearish side.
According to coinglass’ data, the number of short positions taken against Bitcoin has grown significantly in recent days.
This increase in short positions may be due to OPEC’s (Organization of the Petroleum Exporting Countries) new announcement. According to OPEC’s words, there will be a reduction in manufactured oil production, which is expected to lead to an increase in oil prices soon.
If there is a sudden increase in the price of oil, it can cause worldwide economic growth to slow down and as a result, investors can withdraw their investments from assets such as Bitcoin.
Source: coinglass
Despite the FUD caused by the announcement, the number of addresses accumulating more than 1 Bitcoin continued to increase, reaching a all-time high of 992,134.
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However, along with the holders, the MVRV ratio of Bitcoin rose. This meant that most of the addresses that held BTC were now profitable and there was more of an incentive for those addresses to sell their holdings.
📈 #Bitcoin $BTC MVRV (1d MA) just hit a 10-month high of 1.427
See calculation: pic.twitter.com/pIKFUgooAd
— glassnode alerts (@glassnodealerts) 31 March 2023
Santiment’s data revealed that the combination of a high MVRV ratio and bearish sentiment around BTC caused a decline in volume as well as price. It has not yet been decided whether this trend will continue in the coming months.
Source: Sentiment
