Bitcoin’s two-block chainsplit coincides with temporary block production halt

• Bitcoin experiences a rare two-block chainsplit with Antpool and Foundry.
• Despite a temporary pause in block production and a recent price drop, market sentiment remains primarily bullish.

Bitcoin experienced a unique event recently, as it encountered a two-block chainsplit, a phenomenon that rarely occurs. Interestingly, on 8 May, there was a temporary halt in block production on the network.

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The Bitcoin two-block chainsplit

7 May marked a significant event for the Bitcoin network, reminiscent of a similar incident in 2020. It was a two-block chainsplit, a noteworthy occurrence where two distinct blocks are mined and appended to the blockchain almost simultaneously.

Consequently, two competing branches or chains emerge. This phenomenon can arise due to factors like network latency and the distribution of mining power. Considering the recent strain on the network, this development shouldn’t be a complete surprise.

When a two-block chainsplit occurs, the Bitcoin network finds itself with two separate chains, each containing an equal number of blocks temporarily.

However, as miners continue their work and create new blocks, one of the chains will be extended more rapidly, ultimately becoming longer than the other.

The network deems the longer chain valid and accepts it, while the shorter chain is rejected and discarded as an orphaned or stale chain.

Based on data from Bitmex research, the chainsplit involved Antpool and Foundry. Eventually, it was determined that the block from Antpool emerged as a valid block in the Bitcoin network.

Bitcoin witnesses a brief pause in block production

8 May proved eventful for the Bitcoin network as it experienced a temporary interruption in block production, as reported by WuBlockchain

According to data from BTC.com, block production had two significant pauses that day. The first pause occurred after reaching block height 788,759, lasting approximately an hour before the subsequent block was mined.

The second pause occurred after block height 788,777, lasting around 49 minutes. However, it is important to note that the network had returned to its regular block production rhythm, at the time of writing.

Source: BTC.com

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Bullish sentiment dominates

Bitcoin has been experiencing a series of downward trends in the past few days, leading to its price dropping to the $27,000 range, at the time of writing.

Surprisingly, data provided by Coinglass indicates that most investors were placing their bets on a price increase. According to Coinglass, the funding rate for BTC was positive across most exchanges, suggesting a prevailing optimistic sentiment among traders.

While there were a few negative funding rates, the overall market sentiment remained bullish.

Source: Coinglass