Entering 2023, the price of Bitcoin has been on a good trend, rising from US$16,500 at the beginning of the year to the current US$40,000. With the combination of triple positive factors such as the high probability of approval of the Bitcoin spot ETF, the four-year halving market, and the slowdown in U.S. interest rate hikes, Bitcoin’s wealth effect will most likely continue. In addition to the wealth effect of the BTC price itself, the spillover of market funds into its ecosystem is very obvious.
The most obvious case is that the entire BRC20 track has exploded again since November. BRC20 currencies including ORDI, SATS and other BRC20 currencies have created a huge wealth effect, which has also driven the development of the entire Bitcoin ecosystem, initially showing the The potential of a bull market engine. At this stage, the focus on the Bitcoin ecosystem is focused on the following two aspects. First, asset issuance protocols, which mainly cover: Ordinals, Atomics, Runes, PIPE, Taproots Assets and other protocols; second, expansion plans, which mainly cover: Ligtning Lightning Network , RSK, Stacks, RGB, BitVM.
The main sectors with obvious wealth effects in the Bitcoin ecosystem at this stage include: BRC-20 assets under the Ordinals protocol, ARC-20 and Realm under the Atomics protocol, PIPE under the PIPE protocol, and the tokens of the Bitcoin expansion sector (RIF, STX ) and other four aspects.
