In the latest market trading hours, Bitcoin (BTC) has reclaimed the $28K mark amid increasing uncertainty in the banking sector. The current scenario is encouraging investors to regain confidence in Bitcoin, coupled with other digital assets that hold decent value. Previously, the trading price of the largest cryptocurrency by market cap hovered below the $28K mark before it jumped to a high of $28,775, signifying an overnight increase of over 2.6%.
Bitcoin (BTC) is seen to be rallying in the crypto market, despite the token trading in the red over the last week. At the time of writing, Bitcoin (BTC) surged by almost 1.95% in the previous 24 hours, pushing the trading price up to $28,528. The total market cap of the cryptocurrency is currently $552 billion.
However, the decrease in shares of two regional banks, PACW and WAL, is regarded as the main catalyst of increased consumer interest in cryptocurrencies. The failure of some of the largest US banks has rattled the economy but has proved to be a breakthrough for cryptocurrencies.
Furthermore, the current cool jobs data highlighted how the traditional economy was weakening, and how the pressures of inflation might become less intense. The masses believe that these two factors might serve as another boom to digital assets.
Potential Interest Rate Hike Triggers Outflows from Bitcoin
As per the recently shared Digital Assets Fund Flows Weekly Report, the forecast of the crypto market is still bearish. For the second consecutive week, BTC outflows were at a high, totaling approximately $72 million. The report highlighted how there was a likelihood of the bearish sentiment to further accelerate as the FED is expected to announce more interest rate hikes on Wednesday.
Despite these recent outflows, short-Bitcoin continues to be the leader in the overall inflows for the year totaling $119 million. Furthermore, Bitcoin (BTC) was subject to high volatility the previous week, which resulted in $340 million worth of leveraged BTC futures contract liquidations.
Bitcoin (BTC) Transactions Hit an All-Time High with 3 Million Ordinals Inscriptions
In other news, the total fees for the Ordinal inscriptions crossed the $7.6 million mark, approximately 272 BTC. Just on Monday, more than 372,000 inscriptions were created on the Bitcoin network, which eventually contributed to a daily record of 682,281 transactions.
I can't believe my eyes
BRC-20 demand leading to a 700% increase in fees AFTER what we've seen with Ordinal Inscriptions
12,800% increase in fees from BEFORE Ordinal Inscriptions launched
300,000 unconfirmed transactions in the mempool pic.twitter.com/oyLceu6ODe
— trevor.btc @ NYC (@TO) May 2, 2023
The masses believe that a greater chunk of the acceleration is BRC-20. The BRC-20 token standard enabled minting tokens and meme coins on the Bitcoin network, paving the way for an additional million inscriptions to be added within a week’s time.
Similarly, as long as the value generated from the BRC-20 tokens of Bitcoin stays on the higher side, the fees on Bitcoin would continue to increase. Analysts believe that a greater fee on Bitcoin is undoubtedly a better thing, as it helps in minimizing the possible involvement of scammers and fraudsters.
