BTC Markets
The Ordinals Doldrums
BitOoda BTC Market Research, 8/22/23
Vivek Raman
The broken record of an unchanged week-over-week BTC price has finally been shattered, although not quite in the direction that the bulls wanted. Over the past week, BTC (and the broader crypto market) moved sharply lower, with BTC and ETH falling over 10% and effectively fully retracing the early summer move catalyzed by the Blackrock ETF filing.
Part of this move lower was potentially due to the lack of an ETF decision; it seems like the Grayscale ruling and a spot BTC approval or denial by the SEC has been pushed out for an indefinite period of time. Although there are deadlines by which a decision is required (which, ironically, coincide with the Bitcoin halving), we likely saw some sell-the-news sentiment on a catalyst not playing out.
However, although the price doldrums were shattered by volatility, another aspect of BTC remains muted: fees. Typically, heightened volatility should mean heightened fees – we typically see this effect in the Ethereum ecosystem, where the decentralized finance market picks up steam as volatility increases. However, for BTC, the week over week transaction fees were actually lower alongside higher volatility.
One driver of BTC fees that we have covered in the past has been the Ordinals market, which blossomed early in 2023 and picked up momentum in late 1Q / early 2Q. Ordinals were the NFT-equivalent for Bitcoin and represent a lasting, diversified use case beyond being a store of value asset.
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The broken record of an unchanged week-over-week BTC price has finally been shattered, although not quite in the direction that the bulls wanted. Over the past week, BTC (and the broader crypto market) moved sharply lower, with BTC and ETH falling over 10% and effectively fully retracing the early summer move catalyzed by the Blackrock ETF filing.
Part of this move lower was potentially due to the lack of an ETF decision; it seems like the Grayscale ruling and a spot BTC approval or denial by the SEC has been pushed out for an indefinite period of time. Although there are deadlines by which a decision is required (which, ironically, coincide with the Bitcoin halving), we likely saw some sell-the-news sentiment on a catalyst not playing out.
However, although the price doldrums were shattered by volatility, another aspect of BTC remains muted: fees. Typically, heightened volatility should mean heightened fees – we typically see this effect in the Ethereum ecosystem, where the decentralized finance market picks up steam as volatility increases. However, for BTC, the week over week transaction fees were actually lower alongside higher volatility.
One driver of BTC fees that we have covered in the past has been the Ordinals market, which blossomed early in 2023 and picked up momentum in late 1Q / early 2Q. Ordinals were the NFT-equivalent for Bitcoin and represent a lasting, diversified use case beyond being a store of value asset.
Purpose
This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda.io.
Analyst Certification
Vivek Raman, the research analyst denoted by an “AC” on the cover of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships.
Conflicts of Interest
This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation.
General Disclosures
Any information (“Information”) provided by BitOoda Holdings, Inc., BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or through http://www.bitooda.io/, including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using its brokerage services. BitOoda makes no representations or warranties (express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information.
The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance.
All derivatives brokerage is conducted by Ooda Commodities, LLC a member of NFA and subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.
BitOoda Technologies, LLC is a member of FINRA.
“BitOoda”, “BitOoda Difficulty”, “BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc.
Copyright 2023 BitOoda Holdings, Inc. All rights reserved. No part of this material may be reprinted, redistributed, or sold without prior written consent of BitOoda.
The broken record of an unchanged week-over-week BTC price has finally been shattered, although not quite in the direction that the bulls wanted. Over the past week, BTC (and the broader crypto market) moved sharply lower, with BTC and ETH falling over 10% and effectively fully retracing the early summer move catalyzed by the Blackrock ETF filing.
Part of this move lower was potentially due to the lack of an ETF decision; it seems like the Grayscale ruling and a spot BTC approval or denial by the SEC has been pushed out for an indefinite period of time. Although there are deadlines by which a decision is required (which, ironically, coincide with the Bitcoin halving), we likely saw some sell-the-news sentiment on a catalyst not playing out.
However, although the price doldrums were shattered by volatility, another aspect of BTC remains muted: fees. Typically, heightened volatility should mean heightened fees – we typically see this effect in the Ethereum ecosystem, where the decentralized finance market picks up steam as volatility increases. However, for BTC, the week over week transaction fees were actually lower alongside higher volatility.
One driver of BTC fees that we have covered in the past has been the Ordinals market, which blossomed early in 2023 and picked up momentum in late 1Q / early 2Q. Ordinals were the NFT-equivalent for Bitcoin and represent a lasting, diversified use case beyond being a store of value asset.
Purpose
This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda.io.
Analyst Certification
Vivek Raman, the research analyst denoted by an “AC” on the cover of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships.
Conflicts of Interest
This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation.
General Disclosures
Any information (“Information”) provided by BitOoda Holdings, Inc., BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or through http://www.bitooda.io/, including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using its brokerage services. BitOoda makes no representations or warranties (express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information.
The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance.
All derivatives brokerage is conducted by Ooda Commodities, LLC a member of NFA and subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.
BitOoda Technologies, LLC is a member of FINRA.
“BitOoda”, “BitOoda Difficulty”, “BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc.
Copyright 2023 BitOoda Holdings, Inc. All rights reserved. No part of this material may be reprinted, redistributed, or sold without prior written consent of BitOoda.