Bitcoin BTC price at $28.6K remains unaffected due to temporary suspension of withdrawals from Binance

Good morning. Here’s what happens:

the prices: Bitcoin and ether fell slightly on Sunday, despite the potential for a market-wide rally and significant price movement, an analyst says. The meme mania has led to drastic shifts in market sentiment.

ideas: Challenges caused by network congestion due to increased Ordinals are offset by increased mining incentives, network security, and available Layer-2 and sidechain solutions.

Bitcoin has had a dull weekend, despite the pause in Binance withdrawals

Good morning, Asia. As the East begins its trading week, both bitcoin and ether have recently fallen a few fractions of a percentage point. Bitcoin fell 0.34% to $28,787, while Ether fell 0.4% to $1,913.

Joe DiPasquale, CEO of BitBull Capital, points to the meme coins as a reason to pump up market sentiment but a fairly steady activity for major cryptocurrencies.

“The market has not moved strongly this week, but market sentiment has been choppy with meme coin mania at its peak,” DiPasquale wrote to CoinDesk in a note. “With PEPE and other meme coins posting high five-figure gains, we wouldn’t be surprised if a market-wide rally materializes in the near term.”

DiPasquale notes that Bitcoin has yet to test the support levels on the downside, and the Bollinger Bands continue to tighten. This means that the gap between the upper and lower bands is narrowing, which indicates a decrease in market volatility. This usually indicates that a large price move could be on the horizon, as periods of low volatility often precede larger market trends.

“Going forward, we expect a strong bounce from $25,000 to continue for another move above $30,000,” DiPasquale concluded.

Bitcoin purists find ordinal elements annoying, but they are a much needed source of income for miners

For the uninitiated, ordinal patterns, similar to NFTs, are digital assets registered on satoshis (the smallest unit of currency in bitcoin) enabled by the Taproot upgrade, allowing for smart contracts and minting of NFTs directly on the Bitcoin blockchain.

However, in the long run, cash-strapped miners will be huge beneficiaries of this newfound interest in the bitcoin blockchain.

according to Aggregate data By user dgtl_assets on dune, ordinal sprites are now generating daily fees north of $2.7 million, with total fees around $14 million.

In April’s note, Grayscale argued The increase in fees from the hierarchy is useful for stimulating mining and thus securing the network.

“While some criticize the arrangement, warn of blockchain swelling or harming the exchange, we believe the arrangement represents one of the biggest opportunities for Bitcoin adoption, especially since the Bitcoin network has historically been seen as a solid blockchain ecosystem,” Grayscale wrote. “The advent of the arrangement has led to an increase in the total fees paid to miners, and could establish a sustainable base level of transaction fees to incentivize miners.”

Grayscale and CoinDesk share the same parent company in the Digital Currency Group.

When balancing network security against a new channel of mining incentives versus congestion nuisance, which one wins out? Maybe the new incentive channel.

Realistically, this could go a long way in filling holes in miners’ balance sheets. Sure, bailouts could also be a solution, but this would centralize mining around stakeholders like Binance and Galaxy Digital.

And for those who complain, there are plenty of solutions readily available, such as Layer-2s or sidechains like Lightning Network or Liquid.

Bitcoin traders should celebrate the order and be happy that the market is indicating that they are here to stay.

The US added 253,000 jobs in April, up from a downwardly revised 165,000 in March and ahead of economists’ expectations of 180,000, according to a Bureau of Labor Statistics report. Separately, CoinDesk’s executive director of global content, Emily Parker, explained why central bank digital currencies could become a topic in the US presidential election. Evan Cheng, CEO of Mysten Labs, and Chase White of Compass Point Research also joined the conversation.