Why did Bitcoin Inscription tokens ORDI, SATS collapse?
Bitcoin Inscription tokens ORDI and SATS have relatively lagged the overall cryptocurrency market so far in 2024 and are showing signs of a possible further decline. Both coins experienced significant declines in January, suffering along with the entire cryptocurrency market, which was particularly subject to Bitcoin price volatility.
This downward trend is mainly influenced by Bitcoin price fluctuations. As Bitcoin serial numbers, the prices of ORDI and SATS are closely related to Bitcoin. Recent market sentiment has been filled with “dump the news” sentiment, which has sent shockwaves through the entire cryptocurrency market. In addition, the correlation coefficient between ORDI and BTC shows that its price changes are closely related to Bitcoin, which also exacerbates its downward trend.
In addition to Bitcoin price fluctuations, lower demand for the Inscription token is also one of the factors that contributed to its price decline. Recently, the prices of ORDI and SATS have fallen by approximately 34.50% and 50% respectively, mainly due to the weakening demand for Bitcoin ordinal. Additionally, this downward trend has been exacerbated by significant reductions in inscription fees and Bitcoin block size shares.
Another factor contributing to the decline in ORDI and SATS prices is the impact of technical conditions. A recent bearish divergence signal has seen the prices of both coins witness an uptrend with a declining strength index (RSI), hinting at a potential trend reversal or temporary break.
