Bitcoin Network Activity Is Declining — Impact On Price?
A sluggish Bitcoin price performance has not been the only disappointing theme for the largest crypto market so far in 2025. According to the latest on-chain data, the Bitcoin network fundamentals have been dwindling since the final quarter of last year. Bitcoin’s Active Addresses And Transaction Count On A Decline? In a Quicktake post on the CryptoQuant platform, a crypto analyst with the pseudonym Yonsei_dent explained how recent price stagnation is tied to declining network activity. One of the relevant on-chain indicators here is the Active Addresses (AA) metric, which measures the number of wallet addresses involved in a transaction within a specific period. Usually, the Active Addresses metric is 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, suggesting a “potential weakness in investor participation.” Additionally, a “death cross” recently formed between the AA’s 30-day moving average (30DMA) and its 365-day moving average (365DMA). For context, a “death cross” in technical analysis refers to a bearish signal marked by a short-term moving average crossing below a longer-term moving average. Source: CryptoQuantThis death cross signals a bearish momentum is forming and that a prolonged downward trend (for both price and network activity) might be on the horizon. Yonsei_dent added: While the two metrics have been fluctuating in a tight range, the 365DMA remains in a downward trend, suggesting a prolonged slowdown in network engagement. Furthermore, another on-chain metric spotlighted by the Quicktake analyst is Transaction Count, which measures the number of unique transactions on the network within a specific period. According to data from CryptoQuant, the number of unique transactions on the Bitcoin network has been declining since Q4 2024. Yonsei_dent associated this worrying trend with the global macroeconomic uncertainty and increasing risk aversion that has plagued the market since US President Donald Trump took the Oval Office. What Next For BTC Price? As inferred earlier, the declining network activity does not exactly bode well for the Bitcoin price action. Periods of low transaction activity have often coincided with prolonged sideways movement and sometimes price corrections. This trend might explain the price performance of the premier cryptocurrency in 2025. The Bitcoin price has struggled to maintain any serious bullish momentum to push new highs. As of this writing, the price of Bitcoin sits just above $97,700, reflecting a measly 0.3% increase in the past 24 hours. The coin’s weekly record is not any better, as the market leader has increased by barely 1% in the last seven days. The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingViewFeatured image from iStock, chart from TradingView Opeyemi Sule Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies. Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part - in fact, far from it. Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger. When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix. Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books - ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K. Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that. Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings. Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time - he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better. Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon - cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment - spreading the crypto gospel to the rest of the world. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.