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Bitcoin (BTC) supporters are bullish, and expectations that Bitcoin price will reach $250,000 in the months ahead are increasingly priced in, with analysts pinning hopes on the supply shock dynamics following the Bitcoin Halving Date 2024 – which is expected to hit demand from Bitcoin Spot ETF inflows.
On-chain data shows the Bitcoin network is booming roughly one week before the highly anticipated Halving event.
According to fresh data from Dune, an analytics platform, the number of Ordinals has surpassed 65 million, a notable surge that might revive and even catalyze more on-chain activity.
Unpacking The Ordinals Boom: How Significant Are Ordinals Post-Halving?
Ordinals, a new creation on Bitcoin aiming to replicate the wild success of non-fungible tokens (NFTs) on Ethereum, have been popular after launching to much fan fair in early 2023.
Ordinals use a new method called inscriptions to create NFT-like assets where backing files are stored on the Bitcoin network. While exciting, this method isn’t efficient, and is blamed for spamming the Bitcoin network – in turn pushing transaction fees high.
According to Dune, transaction fees pocketed by mining pools exceed $458 million so far. This figure will only continue rising in the days ahead, especially if Ordinals find traction.
Market Commentary: Here’s Why Bitcoin Price Will Soar To $250,000
The success of Ordinals will also be closely tied to the performance of BTC in the secondary markets. According to Tim Draper, a vocal venture capitalist, Bitcoin price could more than 3X to over $250,000 by the end of the year.
He cites the expected repricing after the Bitcoin Halving Date 2024, which most analysts say will lead to a supply crisis due to dropping emissions.
According to trackers, over 19.8 million BTC have currently been mined. Reportedly, over 4 million BTC has also been lost and are irretrievable.
This means roughly 16 million BTC are in circulation, available to all players, institutions included—although a substantial proportion of that (over 14m is held by long-term holders).
The ongoing demand, especially for spot Bitcoin ETFs issued by leading Wall Street heavyweights like Fidelity and BlackRock, will exacerbate the situation, possibly listing prices higher.
Yesterday, BlackRock bought roughly $130 million worth of BTC, pushing their total haul to over 266,000 BTC.
Moreover, with the United States economy heating up and the Federal Reserve struggling to tame raging inflation, BTC will likely benefit as a hedge.
Today, the market is watching closely for more inflation-related data in the New York session.
The Bottom Line: Funding Rates Ease Tension Ahead of Bitcoin Halving Date 2024
Looking ahead to the next week leading up to the Bitcoin Halving Date 2024, technical analysts are decidedly bullish on spot rates.
Of note is that the Bitcoin perpetual markets look healthy, as the funding rate is at normal levels. When funding rates rise, it means leveraged traders expect prices to roar.
This time, buyers pay sellers at a higher-than-normal rate suggesting the funding rate could then fall as the general excitement dissipates.
EXPLORE: 3 Super Hot NFT Projects on Base that could be the next CryptoPunks
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
