We've seen Bitcoin rise over the past few weeks. Bitcoin prices were going from green to green. But Bitcoin has moved into the red since the new week. Ordinals minting led to bitcoin prices starting the weekend in the red, as well as blockchain network shutdowns over the weekend. If you watch closely, you will see that the price of BTC has dropped by almost a certain amount every hour, currently the price of Bitcoin is down to around $41,200 today. Which reminds us of how the flagship digital asset launched last week. We know very well that Bitcoin along with other coins fluctuates quite a bit.

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As we can see in the case of $hive. Its price has fallen and is currently around $0.325. Similarly, other large-cap alternative cryptocurrencies such as Ethereum, Solana, Cardano, and Avalanche recorded significant losses along with Bitcoin. Usually we see that when the price of Bitcoin increases, other altcoins increase in price by a small amount, but when the price of Bitcoin decreases, the price of other altcoins decreases by a large amount.

Crypto Liquidity

The recent price drop has resulted in millions of dollars in losses for many crypto traders with active market positions. These losses are estimated to be around $160+ million. Especially targeting the bull market ahead there are many traders who held the coin for a long period of time. And they are currently the most significant losers. Also, long traders suffered the most significant losses as futures traders remained and their long trades ended in liquidation. Here the loss of small traders is less but the loss of big traders is the highest. We know liquidity is very important especially for futures traders. A trader loses his capital if liquidation ends. Thus many traders who have seen the price of Bitcoin fall have suffered huge losses due to its liquidation. Traders who took long positions, or who speculated on high BTC prices, saw a huge loss.

Ordinals generated heated debate in the BTC community earlier in the month. As a result we saw some impact on the market. This generated a lot of heated debate because purists argued, these assets were exploiting a weakness of Bitcoin. They also claimed that it was the root of blockchain spamming The debate on this was quite good. Many in the community opposed this view of the purists. Many in the community put forward different arguments. Their argument is that these inscriptions will never be closed and this is an evolution of the blockchain network. The reason behind this is that users have spent the weekend on these assets with a pretty good value as a transaction fee. The increase in Ordinals Inscriptions over the week has caused the blockchain network to clog up resulting in an increase in Bitcoin's average transaction fee. And as a result many transactions have become uncertain.