Summary:
Bitcoin's price performance in 2025 is sluggish, correlating with declining network fundamentals.
The Active Addresses (AA) metric shows a steady decline, indicating weak investor participation.
A death cross between 30DMA and 365DMA suggests bearish momentum ahead.
The Transaction Count has also decreased since Q4 2024, linked to global economic uncertainty.
Current Bitcoin price is just above $97,700, with minimal growth in recent days.
A Sluggish Start for Bitcoin in 2025
The year 2025 has not been kind to Bitcoin, with lackluster price performance being a significant theme. Recent data reveals that Bitcoin's network fundamentals have been on a decline since late last year.
Bitcoin’s Active Addresses and Transaction Count on a Decline?
In a Quicktake post on CryptoQuant, analyst Yonsei_dent discusses the connection between Bitcoin's stagnant price and its diminishing network activity. The Active Addresses (AA) metric, which tracks the number of wallet addresses involved in transactions, indicates a steady decline. This drop hints at a potential weakness in investor participation.
A recent “death cross” formed between the AA's 30-day moving average (30DMA) and its 365-day moving average (365DMA), signaling bearish momentum. This technical analysis suggests that a prolonged downward trend in both price and network activity may be on the horizon.
Yonsei_dent elaborates that while both metrics have fluctuated within a narrow range, the 365DMA is trending downward, indicating a slowdown in network engagement.
What About Transaction Count?
Another concerning metric highlighted is the Transaction Count, which tracks unique transactions on the network. According to CryptoQuant data, this number has been declining since Q4 2024. Yonsei_dent links this trend to global economic uncertainty and rising risk aversion since Donald Trump's presidency.
What’s Next for BTC Price?
The declining network activity does not bode well for Bitcoin's price action. Historically, periods of low transaction activity have been associated with sideways movement and even price corrections. This trend might explain Bitcoin's struggles in 2025, as it has failed to gain bullish momentum.
Currently, Bitcoin's price is slightly above $97,700, showing only a 0.3% increase in the last 24 hours and just 1% over the past week.
Comments