- The Puell Multiple metric was at its highest in 14 months at press time.
- Ordinals have also helped the transaction count metric surge in the past weeks.
Many reasons have contributed to Bitcoin’s [BTC] recent and sustained price increase. First, of course, Ordinals’ development is a factor, but so is miners’ decrease in BTC sales due to increased revenue. Okay, but how does it all fit together?
Read Bitcoin’s [BTC] Price Prediction 2023-24
The Ordinals effect
The utility of the Bitcoin blockchain gained a new level with the introduction of Ordinals and its NFT-like operations. According to the findings of Dune Analytics, over 155,000 Ordinals inscriptions have been completed to date. In addition, the Ordinals’ daily inscription chart revealed that there has been an average of 5,000 new inscriptions per day.
Source: Dune Analytics
Ordinal contributes to transaction count
The Bitcoin blockchain’s transaction count measure has also been impacted by the increase in the number of Ordinals created, according to a post by Glassnode. Even though the current count has decreased as of this writing, the overall level improved, according to Santiment’s data.
More than the volume seen since August, the transaction count indicator revealed an upward trend. However, the number was down to about 115,000 as of this writing.
Source: Santiment
Bitcoin miners’ sale drops
One way to evaluate Bitcoin’s current market value compared to its manufacturing cost in the past is via the Puell Multiple. It considers the current market price of Bitcoin and the “Bitcoin Mining Reward,” the rate at which new Bitcoins are created daily.
Source: CryptoQuant
Since miners are the only entity with a consistent cost, like running energy, this indicator has historically been spot-on for identifying Bitcoin’s bear market periods. The current Puell Multiple value is about 0.9, the highest over a year per CryptoQuant.
According to statistics compiled by Blockchain.com, miner profits have risen over the past few weeks. Bitcoin’s price surge to the $24,000 region has boosted miners’ profits. Revenue was over $24,000 as of the writing of this article, down somewhat from the previous month but still at an eight-month high.
With increased profits, miners are under less pressure to offload their wares to recoup manufacturing expenses. As a result, stability in Bitcoin’s price was inevitable after the sale pressure from miners subsided.
Source: Blockchain.com
How much are 1,10,100 BTCs worth today?
How it all ties together
The stability of Bitcoin can be attributed to the recent uptick in the rate of transactions, which the price of Ordinals’ Inscription has influenced. BTC’s current strength has led to an increase in the Puell Multiple measures, which indicated less selling pressure from miners. As their income is up, the urge to sell eased.
Ultimately, these indicators are tied to the fluctuation of BTC’s price.