- Bitcoin’s rebound in 2023 credited to the advent of inscriptions and ordinals.
- Bitcoin’s performance shows remarkable strength compared to historical data.
- Network congestion in Bitcoin gradually dissipating as inscriptions slow down.
A comprehensive analysis conducted by Glassnode, a prominent on-chain analytics firm, delved into the intricacies of Bitcoin and its associated trends. The report revealed a resilient rebound of BTC since the commencement of 2023, with a significant portion of this resurgence being credited to the advent of ordinals and inscriptions within the Bitcoin ecosystem.
Checkmate, a prominent on-chain analyst at Glassnode, conducted the aforementioned analysis. Checkmate’s comprehensive assessment revealed that Bitcoin was in a consolidation phase, hovering around the $30,000 mark, which has emerged as a pivotal level for BTC’s cycle spanning from 2021 to 2023. Furthermore, Bitcoin’s performance throughout the year has demonstrated remarkable strength compared to historical data.
The report highlights the significant impact of inscriptions and ordinals on Bitcoin’s surge this year. However, as inscriptions have recently slowed down, the congestion in the Bitcoin network is gradually dissipating. Simultaneously, there is a continuous growth in monetary transfer volumes, which have surged by 75% since the observed lows in November of the previous year.
The analysis of Checkmate revealed that the current cycle experienced a maximum drawdown of 18%, a considerably lower figure compared to drawdowns observed in previous cycles. This limited drawdown could signify a robust level of demand for BTC. Additionally, the recovery from November lows exhibited a similar pattern to that observed in previous cycles.
Inscriptions and ordinals have substantially impacted network congestion and activity levels. According to the analysis conducted by Glassnode, network activity has been steadily decreasing since May 2023. This decline has played a crucial role in alleviating the strain on the network and facilitating the resolution of unconfirmed transactions within Bitcoin mempools.
As of this composition, Bitcoin (BTC) was traded at $30,726, exhibiting a growth of more than 1% within the last 24 hours. According to the data provided by CoinMarketCap, the leading cryptocurrency boasted a market capitalization of $597 billion, accompanied by a daily trading volume of $11.8 billion.
