Bitcoin Network Activity In Bear Market Zone—Warning Or Opportunity?
Bitcoin network activity has recently declined, entering a bear market phase according to CryptoQuant's Bitcoin Network Activity Index. This index tracks blockchain activity through metrics like transaction count and daily active addresses. Since December, the index has sharply decreased, indicating waning demand for network usage. Historically, a low Network Activity Index has preceded bear markets for Bitcoin, although there was an exception during the second half of the 2021 bull run. Despite the current bearish signal, it could also represent a buying opportunity. Additionally, the combined market cap of stablecoins has reached a new all-time high, potentially indicating future investment into cryptocurrencies like Bitcoin. As of now, Bitcoin is trading at approximately $93,800, reflecting a 1% decline over the past week.
