- Interest in Bitcoin Ordinals continued to rise.
- FUD and Speculation around the U.S. government and Mt.GOX wallets impacted trader behavior.
Upon their initial introduction, Bitcoin [BTC] inscriptions garnered considerable attention from the cryptocurrency community. This led to speculations that the hype would be short-lived and interest in ordinals would wane soon.
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Out of the Ordin(al)ry
However, at press time, it appeared that inscriptions surpassed one million. This represented roughly 6% of the total activity on the Bitcoin network.
Consequently, the fees associated with ordinals that are paid out to miners rose. This resulted in a decrease in the selling pressure on ordinals.
Due to these factors, Bitcoin miners started seeing growth in terms of revenue generated over the last few days, according to blockchain.com
Speculations start to rise
However, the FUD around Bitcoin could soon stunt this growth. Recently, there was speculation going around that large transactions were being made by the BTC wallets of the U.S. government and Mt.Gox trustees.
For context, Mt. Gox was once the largest Bitcoin exchange in the world before it filed for bankruptcy in 2014. The exchange suffered a massive security breach resulting in the loss of 850,000 bitcoin, worth around $460 million at the time.
The court appointed Nobuaki Kobayashi as the trustee to oversee the fair and transparent distribution of the remaining assets and funds to the exchange’s creditors.
Additionally, Kobayashi sold a significant amount of the remaining bitcoin over the years to pay back the creditors. He currently holds a substantial number of bitcoins which will be distributed to the claimants.
Many stated that the FUD surrounding the government transactions has led to the recent decline in BTC prices.
It is to be noted that the U.S government was the largest holder of Bitcoin at press time. According to Glassnode’s data, the U.S. government and the Mt.Gox trustee held 205,514 and 137,890 BTC, respectively.
Based on our labels at @glassnode, neither the USG, nor Mt Gox are spending any coins from addresses we monitor.
— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) April 26, 2023
How many are 1,10,100 BTCs worth today
This FUD also affected trader behavior as well. As the expiry date for 105,000 Bitcoin options draws near, 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 dip in Bitcoin’s price. The options also have a max pain point of $27,000, which is the price level where option holders would face the most significant financial loss. The estimated total value of these options was $3.1 billion.