Bitcoin Price Fell More Than 8% In Two Days Amid A New Bitcoin Ordinals Record; What Does It Mean
As the Ordinal inscription exceeded 31,000 following a significant increase in demand since the end of January
Bitcoin’s (BTC) price continues to drop lower as it breaches another critical mark of $20K in the previous session. The global crypto market fell by 6.69% to $930.69 billion on Friday morning. But, the trading volume jumped by 44.02% to $64.94 billion as per Coinmarketcap.com.
As of writing, BTC/USD is reading at $19,941, down 2.09% for the day.
However, the recent increased activity in Bitcoin ordinal inscription failed to inspire Bitcoin buyers amid a broader market nervousness.
What are Bitcoin Ordinals
The Bitcoin Ordinals protocol was initiated in January 2023 by Casey Rodarmor. This protocol allows digital content like art to inscribe onto the Bitcoin blockchain. Ordinal Inscriptions are somewhat similar to NFTs as digital assets inscribed on a satoshi, the lowest denomination of a Bitcoin.
This development caused a lot of excitement and debate in the Bitcoin network. Bitcoin Ordinals are formulated on the theory of Ordinals, which has given satoshis (sats) life and made it possible to use them as atomic units on the Bitcoin blockchain.
On March 9, the number of Bitcoin Ordinals inscriptions minted exceeded 31,000, a new high as tweeted by Wu Blockchain. The Ordinals proposed a sharp increase in the average Bitcoin block size as users inscribed images and larger files such as audio and video as Ordinals.
It is to be noted that Ordinals bring additional financial benefits to miners, who have already generated more than $1.5 million in transaction fees from these NFTs so far.
But, some members of the Bitcoin community have a concern that the Ordinals inscription could price out the actual financial activity and damage Bitcoin’s image as a reliable P2P payment network.
