Bitcoin BTC price of $28.6K remains unaffected by Binance’s temporary withdrawal pause

Good morning Here’s what happens:

Prices: Bitcoin and ether are down slightly on Sunday, although there is potential for a market-wide rally and significant price action, an analyst says. The meme coin mania has resulted in dramatic shifts in market sentiment.

Takeaways: Network congestion challenges due to ordinal surge are offset by increased mining incentives, network security, and available Layer 2 and sidechain solutions.

Bitcoin is having a dull weekend despite Binance’s temporary payout pause

Good morning Asia. As the East begins its trading week, both Bitcoin and Ether have recently fallen a few fractions of a percentage point. Bitcoin is down 0.34% to $28,787, while Ether is down 0.4% to $1,913.

BitBull Capital CEO Joe DiPasquale points to meme coins as the reason for rising market sentiment but fairly flat activity for the crypto majors.

“The market hasn’t moved much this week, but market sentiment has been on a roller coaster ride of meme coin mania at its peak,” DiPasquale wrote in a note to CoinDesk. “With PEPE and other memecoins posting gains in the high five-digit percentage range, we wouldn’t be surprised to see a near-term market-wide rally.”

DiPasquale notes that Bitcoin still has not tested any support levels on the downside and that Bollinger Bands continue to narrow. This means that the gap between the upper and lower bands is narrowing, indicating a decrease in market volatility. This usually indicates that significant price action is on the horizon, as periods of low volatility often precede larger market trends.

“Looking forward, we expect a strong recovery from $25K to continue another leg above $30K,” concluded DiPasquale.

Bitcoin maximalists find ordinals annoying, but they’re a much-needed revenue stream for miners

For the uninitiated, ordinal inscriptions, similar to NFTs, are digital assets inscribed on satoshis (Bitcoin’s smallest currency unit), enabled by the Taproot upgrade, enabling smart contracts and NFT minting directly on the Bitcoin blockchain.

Long term, however, cash-strapped miners will be a big beneficiary of this newfound interest in the Bitcoin blockchain.

According to data compiled by user dgtl_assets on Dune, ordinal inscriptions are now producing just over $2.7 million in daily fees, with total fees hovering around $14 million.

In an April note, Grayscale argued that increasing ordinal fees is useful for incentivizing mining and thus securing the network.

“While some are critical of ordinals and cautioning against blockchain inflation or hampering fungibility, we believe ordinals represent one of the greater opportunities for bitcoin adoption, especially as the bitcoin network has historically been viewed as a rigid blockchain ecosystem.” , wrote Grayscale. “The advent of ordinal numbers has resulted in an increase in the total fees paid to miners and could potentially set a sustainable baseline for transaction fees to incentivize miners.”

Grayscale and CoinDesk share the same parent company in the Digital Currency Group.

When you weigh network security against a new channel of mining incentives against the annoyance of congestion, what wins? Probably the new incentive channel.

Realistically, this could do a lot to plug holes in miners’ balance sheets. Sure, bailouts could also be a solution, but that would centralize mining around interest groups like Binance and Galaxy Digital.

And for those who complain, there are many solutions readily available such as Layer-2s or sidechains like the Lightning Network or Liquid.

Bitcoiners should celebrate ordinals and be happy that the market is signaling that they are here to stay.

The US added 253,000 jobs in April, up from a downwardly revised 165,000 in March and above economists’ forecast of 180,000, according to a Bureau of Labor Statistics report. Separately, Emily Parker, Executive Director of Global Content at CoinDesk, explained why central bank digital currencies could become an issue in the US presidential election. Evan Cheng, CEO of Mysten Labs, and Compass Point Research’s Chase White also joined the conversation.

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