According to data from BTC.com, the Bitcoin network experienced a rare "block pause" of more than 90 minutes between 6:57 and 8:35 p.m. Beijing time on Thursday. During this period, miners' fees soared to 400 to 11,000 SATS/byte, and miners' income exceeded 10 bitcoins, covering block rewards and fee income.
The main cause of this major accident is speculated to be related to the recent resurgence of popularity of Ordinals NFT and BRC-20 tokens in the Bitcoin ecosystem. When the inscription became popular in May this year, the block production was suspended, causing serious congestion pressure on the Bitcoin network.
BRC-20 tokens, led by ORDI, have been hitting new highs this week. However, after Bitcoin Core developer Luke Dashjr publicly criticized the inscription earlier this week, saying it was an attack on the Bitcoin network and a scam, ORDI's price plummeted.
However, as Luke Dashjr's stance changed, he said that it was not necessary to eliminate all the inscriptions, and then criticized again, causing the ORDI price to change dramatically immediately. It can be seen that the token is currently very volatile, and the market's judgment on its value is still controversial.
In addition to the panic caused by the "block suspension", BlackRock mentioned the possibility that "Bitcoin may be listed as a security" in the application documents submitted. The asset management company, which manages $9 trillion globally, wrote: "If the U.S. Securities and Exchange Commission or state securities regulators take any enforcement action claiming that Bitcoin is a security, or the court makes a relevant judgment, it is expected to have a direct and substantial negative impact on the trading value of Bitcoin and Bitcoin spot ETF shares."
“If a digital asset is determined or asserted to be a security, it may be difficult or impossible for such digital asset to be traded, cleared, or custodyed in the United States through the same channels used for non-security digital assets, which, in addition to having a significant adverse effect on the trading value of the digital asset, could also seriously affect its liquidity and the ability of market participants to convert digital assets into U.S. dollars,” the document reads.
After the news came out, Bitcoin fell in the short term, but then good news came out soon after, and the bulls sounded the clarion call for a counterattack, and the bulls and bears fell into a fierce argument.
Reuters quoted industry executives as saying that discussions between the SEC and asset management companies on the listing of Bitcoin spot ETFs have entered key technical details, which may mean that the agency may approve these products soon. Many companies, including Grayscale, BlackRock, Invesco and Ark Investments, have a high probability of having their Bitcoin spot ETF applications approved.
In addition, Bloomberg analyst Eric Balchunas said on the X platform that "I heard that BlackRock may transfer about $200 million of trust assets in its private trust to iShare Bitcoin Trust (IBTC)." He also said that although these assets are not a new demand for private trusts, they may help in the early competition with other Bitcoin spot ETFs.
The listing of a bitcoin spot ETF would mark an important moment for the industry, allowing previously cautious investors to access bitcoin through the strictly regulated stock market. Demand is expected to reach as much as $3 billion in the first few days. If the SEC wants to buy more time, they can ask Ark Funds to withdraw its application and resubmit it, but market participants said that this could be legally risky given Grayscale's decision.
Summarize
In general, a series of recent events in the Bitcoin market have caused market volatility and investors' attention. The suspension of block production, BlackRock's warning, and the critical stage of spot ETF negotiations all affect the future trend and market structure of Bitcoin. Investors should be cautious when participating in the Bitcoin market and pay close attention to relevant market dynamics and regulatory developments. The results of these events will have a significant impact on Bitcoin and the entire cryptocurrency industry, and may trigger a new round of market changes and investment opportunities.
