The underwhelming performance of Bitcoin’s price isn’t the only negative aspect affecting the largest cryptocurrency market in 2025. Recent on-chain data shows that the fundamentals of the Bitcoin network have been declining since the last quarter of the previous year.
Is Bitcoin’s Active Addresses And Transaction Count Decreasing?
In a recent Quicktake post on the CryptoQuant platform, a crypto analyst using the pseudonym Yonsei_dent discussed the correlation between the current price stagnation and decreasing network activity. A significant on-chain indicator is the Active Addresses (AA) metric, which tracks how many wallet addresses are participating in transactions over a set timeframe.
The Active Addresses metric is typically employed to gauge investor sentiment on a specific blockchain. According to Yonsei_dent, there is a consistent decline in the number of active addresses on the Bitcoin network, indicating a “possible weakness in investor participation.”
Moreover, a “death cross” has recently appeared between the AA’s 30-day moving average (30DMA) and its 365-day moving average (365DMA). In technical analysis, a “death cross” is a bearish indicator where a short-term moving average crosses beneath a longer-term moving average.
The occurrence of this death cross suggests that bearish momentum is building, indicating a potential sustained downward trend in both price and network activity.
Yonsei_dent further noted:
While both metrics have been fluctuating within a narrow range, the 365DMA continues to trend downwards, implying an ongoing decline in network engagement.
Additionally, another on-chain metric highlighted by the Quicktake analyst is the Transaction Count, which reflects the number of distinct transactions occurring on the network during a designated period. Data from CryptoQuant indicates that the number of unique transactions on the Bitcoin network has been on the decline since Q4 2024.
Yonsei_dent linked this troubling trend to the global macroeconomic instability and growing risk aversion that have affected the market since US President Donald Trump took office.
What Lies Ahead for BTC Price?
As previously mentioned, diminishing network activity does not bode well for Bitcoin’s price trajectory. Periods characterized by low transaction activity have frequently aligned with extended sideways movement and occasional price corrections.
This pattern may clarify the price behavior of the leading cryptocurrency in 2025. Bitcoin has been struggling to sustain any significant bullish momentum to reach new highs.
At the time of this writing, Bitcoin is priced just above $97,700, reflecting a modest 0.3% increase over the last 24 hours. The weekly performance is not much better, with the market leader registering barely a 1% rise in the past seven days.
