The performance of Bitcoin, the leading cryptocurrency, has been notably stagnant in 2025, reflecting broader challenges within the crypto market. Recent analysis of on-chain metrics reveals a decline in Bitcoin network fundamentals since the last quarter of 2024.

A crypto analyst known as Yonsei_dent, in a report on CryptoQuant, discussed how Bitcoin's price stagnation correlates 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.

This metric often gauges investor sentiment on the blockchain. According to Yonsei_dent, the steady decline in active addresses indicates a potential weakening in investor engagement.

The situation worsens with the appearance of a "death cross," a bearish signal in technical analysis, 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.

Yonsei_dent further noted that while fluctuations are evident between the two averages, the 365DMA's continuing downward trend suggests a prolonged decrease in network engagement.

Additionally, the Transaction Count—tracking the number of unique transactions—has shown a downward trend since Q4 2024. This is attributed to global macroeconomic uncertainties and increased risk aversion that have impacted markets since the tenure of US President Donald Trump.

The decreased network activity does not favor Bitcoin's price behavior. Historically, lower transaction volumes have aligned with extended periods of price stagnation or corrections.

This may elucidate Bitcoin's performance in 2025, as it has struggled to achieve any noteworthy bullish momentum. Currently, Bitcoin's price is slightly over $97,700, reflecting a modest 0.3% increase over the past 24 hours, while its weekly growth is barely 1%.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.