• Bitcoin addresses take a dive as BRC-20 tokens approach $1B market cap
• The new “flippening”: Bitcoin fees surpass block reward for miners
• Market pricing in a 10% chance of 25bps rate hike, due to jobs data
Bitcoin Addresses Take an Extreme Nose Dive
Bitcoin addresses had an extreme nose dive as the BRC-20 tokens approached the $1 billion market cap. This was the sixth biggest outflow of Bitcoin from exchanges YTD.
The New “Flippening”: Bitcoin Fees Surpass Block Reward for Miners
On Friday, there was something that hadn’t happened since 2017; miners earning more from fees than they did from block rewards. This marks a major shift in the security model of Bitcoin and could have long-term implications for miner revenue.
Market Pricing In A 10% Chance Of Rate Hike
The market has started to price in a 10% chance of a 25bps rate hike due to recent jobs data. This is seen by some analysts as an indicator of increasing economic activity and confidence in the markets.
Taproot Plays An Important Role In Entry To The Blockchain
It appears that Ordinals and BRC-20 tokens have played an important role in driving up fees on the blockchain and are now being viewed as integral components of its future success. Taproot also plays an important part in this process by making it easier for users to enter into smart contracts on the Blockchain.
What Does All This Mean For The Future Of Bitcoin?
It remains to be seen what kind of impact all this will have on miner revenue and how much longer they can remain incentivized with just fee income alone. But one thing is certain; if these trends continue then we could see some major changes to come when it comes to security models and overall user experience on the blockchain going forward.