Before the Halving, Bitcoin Hits $71,000 and Ordinals Bets Soar

Bets on the Ordinal and BRC-20 ecosystems were boosted after Bitcoin soared beyond $71,000 in Asian afternoon hours, marking the first time this has happened since April 1. This comes ahead of the reward halving scheduled later this month.  

Historically, a halving of the coin supply has been followed by a bull market in the cryptocurrency. This halving will limit the rate of coin creation. Ahead of the reward halving on April 20, Bitcoin surpassed $71,000 in Asian trading hours Monday, boosting some Ordinal and BRC-20 ecosystem bets while the broader crypto market stayed mostly unchanged.  

CoinGecko statistics shows that Bitcoin (BTC) climbed 2% in the last 24 hours, reaching its highest level since April 1. Gains of 0.43% were recorded by the widely followed CoinDesk 20, which is a measure of the most liquid tokens excluding stablecoins.  

The supply of newly produced coins is reduced when halving takes place because the reward for mining transactions is reduced by half. Whenever this has happened before, the token's value has gone up.  

Following the halving, the block reward will decrease from 6.25 BTC to 3.125 BTC. Leveraged bets on higher anticipated price volatility are reflected in the record-high open interest on BTC-tracked futures, which has remained around $25 billion for a few weeks.  

After the halving event, traders are expecting a rise in BTC, which has led to some tokens and projects in the Bitcoin ecosystem rising in value. Without employing futures instruments or leverage, one might get proxy exposure to the rise of bitcoin through such trades.  

Ordinals, headed by NodeMonkes and Pups, had bigger volumes last week than Ethereum and Solana, the regular leaders, according to the data. In the same time frame, trading of non-fungible tokens (NFTs) fell 95% across all networks, indicating that Ordinals were the only one to see an increase.

Tokens belonging to the BRC-20 category saw a rise of around 6% over the last day. The Multibit infrastructure token had a 22% increase, whilst the Pepe, Alex, and Pizza meme currencies saw a 60% increase. As investors cashed out following a 500% weekend surge, the Pups Ordinal token, PUPS, fell 22%.

By encoding references to digital art into small bitcoin-based transactions, ordinals provide a means to embed data into the Bitcoin network. Users were permitted to create transferable tokens directly over the network for the first time last year with the introduction of the BRC-20 standard, which stands for Bitcoin Request for Comment.  

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