Bitcoin Network Activity Plunges: 'Death Cross' Suggests Extended Bearish Momentum

Bitcoin's stagnant performance in 2025 has raised concerns about its network fundamentals. According to a recent report by Yonsei_dent on CryptoQuant, Bitcoin's price stagnation is correlated with diminishing network activity.

The Active Addresses (AA) metric, which tracks the number of wallet addresses participating in transactions over a defined period, serves as a key indicator of investor sentiment on the blockchain. The steady decline in active addresses suggests a potential weakening in investor engagement.

A 'death cross' has appeared in Bitcoin's network activity, marked by the 30-day moving average (30DMA) for active addresses crossing below the 365-day moving average (365DMA). This pattern suggests looming bearish momentum and possibly extended downturns in both price and network activity.

The Transaction Count has also shown a downward trend since Q4 2024, attributed to global macroeconomic uncertainties and increased risk aversion. Historically, lower transaction volumes have aligned with extended periods of price stagnation or corrections.