Bitcoin’s Transaction Velocity Drops to Lowest Level in Over a Decade
Recent data from CryptoQuant reveals that Bitcoin’s velocity—a measure of how frequently BTC changes hands—has dropped to its lowest point since June 2011.
Bitcoin velocity is calculated by dividing the total transaction value by the average supply, and a lower velocity indicates reduced on-chain activity and a growing tendency among holders to keep their coins rather than transact with them.
This decline in velocity highlights a significant shift in market behavior: rather than using Bitcoin for frequent transactions or speculation, more participants are choosing to hold their assets, treating Bitcoin increasingly as a store of value.
The persistent drop in velocity, which accelerated in 2024 and continued into 2025, suggests the market is maturing and investors are accumulating BTC for the long term.
Despite this slowdown in transactional activity, Bitcoin’s price has seen substantial upward movement, underscoring the contrast between reduced on-chain usage and growing institutional demand.
