Bitcoin Network Activity Is Declining — Impact On Price?
one Bitcoin price is sluggish This isn’t the only disappointing topic for the largest crypto market to date in 2025. According to the latest chain data, the fundamentals of the Bitcoin network have been declining since the last quarter of last year.
Bitcoin’s active address and transaction dependency declines?
In QuickTake post on encryption platform, crypto analyst with pseudonym yonse_dent Explained The recent price stagnation is how related to the decline in network activity. One of the relevant on-chain metrics is the Active Address (AA) metric, which measures the number of wallet addresses involved in transactions over a specific period.
Typically, active address metrics are used to evaluate investor sentiment on a particular blockchain. According to Yonsei_dent, the number of active addresses on the Bitcoin network is steadily declining, indicating “potential weakness in investor participation.”
in addition,The Cross of DeathRecently, the 30-day moving average (30DMA) of AA has formed between the 30-day moving average (365DMA). In the context, the “death cross” in technical analysis refers to a bearish signal that the short-term moving average exceeds the long-term moving average.
This death cross indicates that bearish momentum is forming and may extend the downward trend (for price and network activity).
yonsei_dent added:
Although these two indicators have been fluctuating in a tight range, 365DMA is still in a downward trend, indicating a slowdown in network engagement.
Additionally, another chain-chain metric for QuickTake analysts is Transaction countit can measure the number of unique transactions on the network over a specific period of time. According to CryptoQuant, the number of only transactions on the Bitcoin network has been declining since the fourth quarter of 2024.
Since U.S. President Donald Trump took office as the Oval Office, Yonsonsi_dent has linked this worrying trend to global macroeconomic uncertainty and increased risk aversion.
What is the next step in BTC price?
As mentioned earlier, the decline in network activity is not entirely good for Bitcoin price action. Periods of low trading activity usually coincide with the extension of lateral movement and sometimes even price corrections.
This trend may explain Prime Minister’s cryptocurrency in 2025. Bitcoin’s price has been working to maintain any serious bullish momentum to push new highs.
As of this writing, Bitcoin is just above $97,700, reflecting 0.3% of the past 24 hours. The weekly record of coins is not better, as market leaders have increased by 1% over the past seven days.
