The network’s transaction per second (TPS) rate fell in June, indicating reduced activity.
Analysts are optimistic about the upcoming Bitcoin price rebound.
Accompanied by a recent sharp price drop to around $64,100, the average block size and transaction rates of the Bitcoin network have experienced a significant decrease. The sudden decrease in Bitcoin blockchain activity, measured by the reduction in block size (the volume of transaction data in each block), occurred on June 7 of this year.
Simultaneously, the network’s transaction per second (TPS) rate declined in June, indicating decreased activity and potentially lower profitability for miners due to reduced post-halving BTC block rewards.
Miners’ block rewards were halved at the BTC halving event in April, substantially reducing their profits and motivation to contribute to blockchain activity. With TPS peaks of around 28 and lows of less than 4.5 from January to June, the current average TPS stands at 9.12.
Bearish Trend
In the past 24 hours, long Bitcoin holdings worth $61 million were liquidated, compared to $24 million in short liquidations, as per Coinglass data. Within that timeframe, $61.8 million in short positions and $372 million in leveraged long crypto positions were liquidated. Analysts remain confident about Bitcoin’s rebound in the coming weeks, despite the sluggish overall pace of the crypto sector.
It is possible that the current price decline and the accompanying drop in network activity are just the beginning of a prolonged correction. According to analysis released by CryptoQuant experts on Tuesday, Bitcoin’s recent breach of a key price support level could trigger an 8% to 12% correction, potentially leading to a price decline nearing $60,000.
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