- The network’s transaction per second (TPS) rate fell in June, suggesting less activity.
- Analysts are confident about the Bitcoin price rebound in the coming few weeks.
Along with a recent precipitous drop in price to about $64,100, the average block size and transaction rates of the Bitcoin network have seen a dramatic dip. The sudden decline in Bitcoin blockchain activity, as measured by the diminution in block size (the amount of transaction data included in each block), occurred on June 7 of this year.
At the same time, the network’s transaction per second (TPS) rate fell in June. Suggesting less activity and maybe lower profitability for miners as a result of lower post-halving BTC block rewards.
Block rewards for miners were cut in half at the BTC halving event in April. Thus, significantly reducing their profitability and incentives to contribute to the blockchain’s activity. With peaks of about 28 TPS and dips of less than 4.5 TPS from January to June, the average TPS as of this writing was 9.12 TPS.
Bearish Trend
The previous 24 hours saw the liquidation of $61 million worth of long Bitcoin holdings. Compared to $24 million worth of short liquidations, according to data from Coinglass. Between $61.8 million in short positions and $372 million in leveraged long crypto positions were liquidated in the span of 24 hours. Analysts are confident about Bitcoin’s rebound in the coming few weeks, despite the overall crypto sector’s weak pace.
It is possible that the current price decline and corresponding decline in network activity are only the beginning of a protracted correction. According to analysis released on Tuesday by CryptoQuant experts, Bitcoin’s recent crash through a major price support level would signal an 8% to 12% correction. Thus, potentially leading to a price drop approaching $60,000.
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