The activity of the Bitcoin network has fallen to the minimum values ​​since 2021

The network activity of bitcoin (Cryptoquant Network Activity Index) dropped to 3760 mark, which became the lowest value since February 2024. Since November last year, the indicator has fallen by 15%, which may indicate a decrease in interest in the network and the caution of investors before key events in the market.

Cryptoquant analysts drew attention to the fact that the last time the index was reduced even more only in July 2021. Then the indicator fell by 27% after the prohibition of mining in China, which led to a temporary downturn on the Bitcoin network. Now a decrease in activity occurs without obvious external reasons, which makes the situation more uncertain.

The network activity index takes into account the number of transactions, active addresses and volumes of movement of funds inside the network. Its decrease below 365-day sliding average can signal the slowdown of fundamental activity in the bitcoin network. This can lead to a fall in the volatility and gradual cooling of the market.

Some experts associate the fall of the index with the expectation of the future actions of the US President Donald Trump and the US Securities and Birges Commission (SEC) regarding the regulation of cryptocurrencies. Investors could become less active, preferring to accumulate bitcoins in anticipation of a possible increase in price, with favorable news.

Nevertheless, despite the slowdown in the indicators, long -term bitcoin metrics remain stable. The number of large holders (whales) does not decrease, and institutional investments continue to grow. This suggests that the fall in activity can be a temporary phenomenon. If the index continues to decline, this may well lead to a temporary decline in interest To bitcoin and reducing trade activity in the market. However, if historical trends are repeated, after a period of calm, a new growth may follow.

Author

Peter Ivanov