In June, the Bitcoin network experienced a decrease in transaction per second (TPS) rate, indicating a decrease in activity levels. Despite this, analysts are optimistic about a price rebound for Bitcoin in the near future.
The price of Bitcoin recently dropped to around $64,100, causing both the average block size and transaction rates on the network to plummet. This sudden decline in Bitcoin blockchain activity, measured by the reduction in block size, occurred on June 7th of this year.
Following the halving event in April, where block rewards for miners were cut in half, profitability for miners has significantly decreased. This has resulted in a decrease in incentives for miners to participate in blockchain activities. The average TPS from January to June fluctuated between 4.5 and 28, with the current average TPS standing at 9.12.
In a bearish trend, $61 million worth of long Bitcoin holdings were liquidated in the past 24 hours, compared to $24 million worth of short liquidations, as reported by Coinglass. Within the same timeframe, $61.8 million in short positions and $372 million in leveraged long crypto positions were liquidated. Despite the weak performance of the overall crypto sector, analysts remain hopeful for a Bitcoin rebound in the coming weeks.
There is speculation that the recent price decline and decrease in network activity may be the beginning of a prolonged correction. Analysis from CryptoQuant experts suggests that Bitcoin’s recent crash through a major price support level could lead to an 8% to 12% correction, potentially causing the price to drop to around $60,000.
In today’s crypto news, Polygon (MATIC) price is poised for a potential recovery with strong investor support.