CryptoQuant analysts stated that the decrease in Bitcoin network activity is due to reduced interest from investors. They believe that the number of active wallets and transactions is gradually falling and has nearly reached a historical minimum.
According to their data, the accumulation rate of the first cryptocurrency through spot ETFs has also decreased; moreover, small capital outflows have been recorded. The amounts of unspent outgoing transactions (UTXO) are also decreasing — the scale of this decline is similar to the correction period in September 2023.
If this trend continues, investors will increasingly exit the first cryptocurrency, although a simple decrease in the number of UTXOs is not sufficient grounds to confirm the end of the current cycle, as other indicators still point to a potentially bullish trend, analysts believe.
In their opinion, the decline in investor interest has become the most significant problem for the market, and the previous growth of the asset was driven by optimism surrounding Donald Trump's election victory and the creation of a strategic crypto reserve.
They believe that if this situation persists, another prolonged consolidation phase in the industry will occur, similar to the one that began in March 2024.
Indeed, there are no apparent catalysts for Bitcoin's growth, and none are expected in the near future, which explains the decrease in network activity. This process is reinforced by the relatively high price of Bitcoin, leading its retail holders to adopt a holding strategy.