NEWSLETTER
A slow price performance of bitcoin has not been the only disappointing theme for the largest cryptographic market so far in 2025. According to the latest data in the chain, bitcoin Network foundations have been decreasing since last quarter last year.
Active bitcoin addresses and transactions count in a decrease?
In a quick publication on the cryptocant platform, a cryptographic analyst with the pseudonym Yensei_dent <a target="_blank" href="https://cryptoquant.com/insights/quicktake/67b0712959d0ed3675d02ed9-bitcoin-Network-Contraction-At-a-Crossroads” target=”_blank”>explained How the recent stagnation of the price is linked to the decrease in network activity. One of the relevant indicators in the chain here is the active addresses (AA), which measures the number of wallet addresses involved in a transaction within a specific period.
In general, the metric of active addresses is used to evaluate the feeling of investors in a particular block chain. According to Yonsei_dent, the number of active addresses in the bitcoin network is constantly decreasing, which suggests a “potential weakness in the participation of investors.”
In addition, a “cross of death” was recently formed between the mobile average of 30 days of AA (30dma) and its mobile average of 365 days (365dma). For the context, a “cross of death” in the technical analysis refers to a bearish signal marked by a short -term mobile average crossing below a longer -term mobile average.
<img src="https://technicalterrence.com/wp-content/uploads/2025/02/Bitcoin-network-activity-is-decreasing-impact-on-the-price.png" alt="bitcoin” />
This death of death indicates that a bassist impulse is being formed and that a prolonged downward trend (both for price and network activity) could be on the horizon.
Yonsei_dent added:
While the two metrics have fluctuate in a narrow range, 365dma remains in a downward trend, which suggests a prolonged slowdown in the commitment of the network.
In addition, another chain metric highlighted by Quicktake analyst is the transaction count, which measures the number of unique transactions in the network within a specific period. According to Cryptoquant data, the number of unique transactions in the bitcoin network has decreased from the fourth quarter of 2024.
Yonsei_dent associated this worrying trend with global macroeconomic uncertainty and the increase in risk aversion that has affected the market since the president of the United States, Donald Trump, took the Oval office.
What follows for the price of btc?
As previously inferred, Declive network activity is not exactly a good omen for bitcoin's price action. The periods of low transaction activity have often coincided with a prolonged lateral movement and, sometimes, price corrections.
This trend could explain the price performance of the main cryptocurrency in 2025. The price of bitcoin has fought to maintain any severe bullish impulse to push new maximums.
At the time of writing this article, the price of bitcoin is located just above $ 97,700, reflecting a 0.3% increase in the last 24 hours. The weekly record of the currency is not better, since the market leader has increased just 1% in the last seven days.
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