Is It The Bitcoin Halving Aftermath?
The Bitcoin network has witnessed a notable decrease in its average block size, reaching a yearly low on June 7. This reduction in block size reflects a significant drop in blockchain activity, with the transaction per second (TPS) rate also experiencing a decline.
The halving event in April, which slashed miner block rewards by half, is seen as a contributing factor to this downturn, potentially impacting miner profitability and their contribution to network activity.
Market Dynamics
In the latest Bitcoin News, Bitcoin’s price has concurrently seen a dip to approximately $64,100, aligning with the decreased network activity. Analysts speculate that this could signal the beginning of an extended market correction.
Rekt Capital, a crypto analyst, has pointed out the formation of “clusters of price action” near the $71,600 resistance range, suggesting that Bitcoin may be on the verge of retesting the $64,000 and $62,500 levels. These levels correspond to daily Chicago Mercantile Exchange gaps, highlighting significant price disparities between closing and opening prices across trading days.
Runes Minting Market Resilience
Despite the general slowdown in Bitcoin’s network activity, the Runes minting market remains robust and profitable. This sector’s resilience amidst the broader market downturn underscores its potential as a stable niche within the volatile cryptocurrency landscape.
In short, while Bitcoin’s network activity and price have seen declines post-halving, the Runes minting market continues to thrive. As the crypto community navigates this period of adjustment, all eyes will be on market indicators and analyst predictions for signs of recovery or further correction.
