Bitcoin Network Fundamentals Continue Decline
Bitcoin's network fundamentals have been in decline since the last quarter of 2024, according to recent analysis by crypto analyst Yonsei_dent on CryptoQuant.
The Active Addresses (AA) metric, which tracks wallet addresses participating in transactions over a defined period, has seen a steady decline. This indicator often gauges investor sentiment on the blockchain and suggests a weakening in investor engagement.
A 'death cross' bearish signal has appeared, marked by the 30-day moving average crossing below the 365-day moving average for active addresses. This pattern indicates 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 that have impacted markets since the tenure of US President Donald Trump.