Bitcoin Dips Under $41K to Begin the Week in Red as Memecoin Ordinals Frenzy Clogs up Blockchains

Bitcoin (BTC) started the trading week with a slight increase, surpassing the $41,000 mark, while Ether (ETH) also saw a small uptick, trading above $2,100. Coinglass data revealed that there have been $103.5 million worth of liquidations in token-tracked futures within the past 12 hours, with $95 million of these liquidations being long positions, indicating bets on higher prices. Out of the total liquidations, $33 million was from bitcoin positions, with $29 million of that from long bitcoin positions. These figures from Coinglass signify a significant movement in the crypto market.

Lucy Hu, a Senior Analyst at Metalpha, a Hong Kong-based digital asset management firm, highlighted that despite the recent Ledger hack, the broader market has remained strong. With the anticipation of rate cuts and growing interest in bitcoin, Hu believes that the market is still holding up well. Concerns regarding wallet security have been raised following the Ledger hack, impacting sentiment in the decentralized finance (DeFi) space. However, the exponential rise of Bitcoin Ordinals, which continues to fuel enthusiasm among Bitcoin miners, is expected to maintain the long-term growth momentum of the cryptocurrency.

Despite the ongoing correction phase for bitcoin, end-of-year predictions for 2024-2025 remain optimistic compared to last year’s projections. Woo Network and Bitwise both foresee substantial price points for BTC. Woo Network targets a price of $75,000 for bitcoin in early 2024, while Bitwise predicts that the cryptocurrency will trade above $80,000. Bitwise also predicts the approval of spot bitcoin Exchange Traded Funds (ETFs), which they believe will be the most successful ETF launch in history. Additionally, they anticipate that Coinbase’s revenue will double, surpassing Wall Street expectations by at least ten times.

Gas fees have skyrocketed on Ethereum and various layer-1 chains, including Avalanche, as new meme coins flood the market. Avalanche alone has generated $5 million in fees over the past 24 hours, while Ethereum, with its larger market cap, has generated $13.52 million. Arbitrum and Optimism, two other popular layer-1 solutions, have also experienced a significant increase in gas fees during the past week. It is worth noting that some of these layer-1 tokens, such as AVAX and Solana’s SOL, have declined more rapidly than bitcoin or ether, with AVAX down 6% and SOL down 4%.

In summary, bitcoin began the trading week with a slight increase, maintaining a position above $41,000. Coinglass reported significant liquidations of token-tracked futures, with a majority of these being long positions. Despite the recent Ledger hack, market sentiment remains positive, driven by factors such as the impending rate cuts and the rising popularity of Bitcoin Ordinals. End-of-year predictions for bitcoin’s price in 2024-2025 remain optimistic, with Woo Network and Bitwise targeting substantial price points. However, gas fees have surged on Ethereum and other layer-1 chains due to the influx of meme coins, leading to concerns about network congestion. Some layer-1 tokens have also experienced declines that surpass those of bitcoin and ether.