Bitcoin’s two key indicators have shed light on the evolving dynamics of the cryptocurrency market. As per K33 Research, the amount of Bitcoin Under Management (BUM) by Exchange-Traded Vehicles (ETPs) has reached, touched and went beyond its high.
This surge in BUM is notably correlated with increasing Bitcoin prices. It is further fueled by surrounding spot Bitcoin ETFs.
Bitcoin transaction fees surge
21Shares further alerted Bitcoin investors to a spike in transaction fees. They now average around $5.93—a massive 500% increase from the lows observed in August 2023.
The driving force behind this surge is identified as the minting of Bitcoin’s NFTs, specifically referred to as Ordinal inscriptions.
Despite the broader NFT market experiencing a downturn. However, the launch of Binance Ordinals by Binance has be a pivotal factor that has influenced the current market.
This move by one of the leading crypto exchanges can reignite the NFT space. However, it will potentially contribute to a surge in transaction fees.
Bitcoin becomes attractive for investors
As highlighted by K33 Research the rising BUM signifies a growing interest and confidence in Bitcoin as an investment instrument.
On the other hand, the surge in transaction fees reflects the increased demand and activity as Bitcoin’s ordinals grab the stage. The introduction of Binance Ordinals is acting as a counterbalance and has been attracting users.
These two contrasting trends underscore the complexity of the market. Observing how these dynamics unfold in the coming weeks will provide valuable insights into the future trajectory of the Bitcoin market.