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Welcome to Cryptonary’s BTC Digest. Your regular one-stop source for all things Bitcoin.
So, what’s going on this week?
Bitcoin NFTs are turning heads, whales are buying like no tomorrow, and BTC is storming right towards a 2023 high!
TLDR
- Bitcoin’s market structure remains bullish
- Whales buying and protecting prices
- Regulations clamping down hard but Bitcoin is immune
- Bitcoin NFTs (Ordinals) are driving more attention to BTC
- BTC to reach $30,000
- Share this report with your family and friends.
Disclaimer: Not Financial nor Investment advice. Any capital-related decisions you make are your full responsibility and yours only.
What if Borat, everyone’s favourite Kazakhstani journalist, were to let us all in on the secret of Bitcoin? Well, no need to wonder – just check it out below!👇🏼
Source: ChatGPT
Regulatory Rollercoaster
The Financial Conduct Authority (FCA) raided multiple Bitcoin ATMs in Leeds, United Kingdom. The FCA issued a statement in March 2022 warning that all Bitcoin ATMs must be registered with them to comply with anti-money laundering (AML) laws. This caused many operators to shut down their machines, but this physical raid is a first for the UK.
US regulators, particularly the Securities and Exchange Commission (SEC), have been cracking down on crypto at an accelerated rate. They recently announced a ban on staking for multiple exchanges that failed to register and declared BUSD a security. However, in 2018, SEC Chairman Jay Clayton declared Bitcoin a non-security, so Bitcoin holders remain safe.
Bitcoin Goes NFT: Introducing Ordinals – an Ordered System for Every Satoshi
You’ve probably heard of NFTs – they’re a hot topic in the cryptocurrency world and are incredibly popular on Ethereum and Solana blockchains. But now, something weirdly exciting has happened – NFTs have landed on the Bitcoin blockchain, through something called “Ordinals.”
So what are Ordinals? They create an “order” for every satoshi (1 sat = 0.00000001 BTC) in existence. Since the maximum supply of Bitcoin is 21 million BTC, the ordering system starts from 0 and ends at 2,100,000,000,000,000.
Thanks to the 2021 Taproot Upgrade (making TXs more private and efficient), metadata such as JPEGs can now be inscribed in a block. So, you can now have an NFT linked to a specific satoshi on the Bitcoin blockchain. This might sound complex, but the point is that Ordinals have taken off in a big way – nearly 125,000 have been created already! It’s certainly an exciting development for Bitcoin, but opinions are divided on whether it’s a good thing or not.
Ordinal Punks
Ordinal Punks, a collection inspired by the original CryptoPunks, has already reached a floor price of 4 BTC ($93,000). A total of 70 have been traded on the secondary market, and their prices have been increasing rapidly.
Ordinal Punks Sales Prices
You can track the collection’s data on this sheet.
The increasing adoption of Bitcoin NFTs can be seen in the rise of Taproot address adoption. Only Taproot-compatible addresses can interact with them.
Miners have been making good profits from Bitcoin NFTs, with fees paid exceeding $915,000 since the start of the year – JUST from inscriptions.
However, it is still too early to draw conclusions about NFTs on Bitcoin. One advantage that Bitcoin NFTs have over Ethereum ones is that the metadata is directly uploaded to the blockchain. This is a strength that Ethereum/Solana NFTs have been criticized for lacking. However, once an image is uploaded, it is permanently stored, and some people have already uploaded inappropriate images using this technology.
Interacting with Ordinals is complex and not user-friendly, to the point that Bitcoin NFTs are being wrapped, bridged to Ethereum and traded on OpenSea.
In the short-term, all attention is good attention. If Bitcoin NFTs become as popular as Ethereum NFTs did in 2021, Bitcoin’s price is likely to rally strongly.
Bullish Price Structure
Bitcoin’s market structure looks promising with a new higher high, which suggests a bullish trend. Even if the price fluctuates in the short term, it is unlikely to break the new bullish market structure, and we expect it to head towards $30,000.
Smart Money
By definition, smart money have a lot of money and they’ve been buying BTC. Let’s dive into the data 👇🏼
Whale Wallets
The above chart shows us when large wallets (whales) have had inflows. Every blue dot represents inflow and the bigger the dot, the bigger the inflow.
As you can see, whales have not been buying BTC at this high frequency and magnitude for a very long time.
If the whales are buying, so are we.
Whale Traders
There are some big traders, called “whales,” who are working to keep Bitcoin’s price from going down. In recent days, the price has been stuck around $21,400, and the reason is that one or more whales on the Binance exchange have been placing huge buy orders at that price level, totaling over $25.6 million. These big buy orders have made it hard for anyone trying to sell Bitcoin to bring the price down. You can actually see the wall of bids in yellow on the chart below.
Cryptonary’s Take | Conclusion
Whales have been buying, creating large buy walls to set higher lows, which has served to create a strong and bullish market structure. This has been coupled with the recent surge in attention towards Bitcoin through the NFT craze, which has only served to add even more fuel to the fire. This perfect combination of events suggests that Bitcoin has the potential to continue its march towards a price of $30,000.
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