An intriguing event occurred as the world’s attention was fixated on whether Bitcoin would experience growth or decline at the start of February. The Bitcoin network recorded its largest block in the past four months.
Preliminary investigations showed that the substantial transaction within the block went through without incurring fees, a rare occurrence. Reports indicate that Taproot Wizard, an NFT project, performed the transaction.
The Bitcoin blockchain transmitted a unique NFT, sent as a full JPEG image, a surprising shift from its traditional, small data packets. A significant rise in data transmission marks this.
Historically, block size limits have restricted the Bitcoin network’s transaction capability and speed. The experimental NFT project, Taproot Wizard, links the recent NFT transaction to innovation on the Bitcoin blockchain.
Bitcoin Core opposes NFT experiments due to concerns over more important block size requirements to accommodate NFT functionality. Bitcoin’s block size remains unchanged, and larger blocks could lead to decreased security and diminished anti-censorship qualities for the network.
Bitcoin has struggled to keep an upward trend since the start of this month, which coincided with a surge in the block size limit. Suspicions of a network attack attempt arose, and speculation triggered FUD, causing concern among investors.
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Furthermore, Bitcoin drops 5% from its YTD high of $24,258 to $23,129. Despite this, there’s a good observation for the next price move. A possible golden cross forms as Bitcoin’s 50-day moving average approaches a cross with the 200-day moving average from below, seen as a bullish signal. Market conditions sway the advantage towards either bulls or bears.
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