Beyond the lackluster Bitcoin price, 2025 hasn’t been stellar for the top cryptocurrency. New data reveals key operational aspects of the Bitcoin network have weakened since late last year.
Is Bitcoin’s User Base and Transaction Volume Shrinking?
A crypto expert, known as Yonsei_dent, shared insights on CryptoQuant, suggesting the current price stability is linked to decreased network usage. One vital indicator is the number of Active Addresses (AA), tracking wallets used in transactions over a set time.
The Active Addresses metric generally reflects how people feel about a blockchain. Yonsei_dent notes a consistent drop in Bitcoin’s active addresses, hinting at less investor involvement.
A “death cross” recently appeared, where the AA’s short-term (30-day) average fell below its long-term (365-day) average. In trading, a “death cross” is a negative sign, showing a short-term trend falling below a long-term trend.
This suggests a downward shift is gaining strength, and a continued decline in both price and activity could be coming.
Yonsei_dent commented:
While these measurements have stayed relatively stable, the 365-day average is still going down, implying a sustained reduction in network participation.
Another key metric emphasized is the Transaction Count, representing the number of unique transactions processed on the network during a given period. Data indicates a decrease in Bitcoin transactions since the last quarter of 2024.
Yonsei_dent connects this concerning pattern to the global economic instability and increased caution affecting the market ever since Donald Trump’s time in office.
What’s Next for the Price of Bitcoin?
As mentioned, declining network activity isn’t a positive sign for Bitcoin’s value. Historically, low transaction levels have often accompanied extended periods of sideways trading or even price drops.
This may explain why Bitcoin’s price has struggled to build enough positive momentum to reach new all-time highs during 2025.
Currently, Bitcoin is priced slightly above $97,700, a small increase of 0.3% in the last 24 hours. The week’s performance isn’t much better, with a gain of about 1%.