Declining Bitcoin Activity

🔷The Bitcoin Network Activity Index (CryptoQuant Network Activity Index) has dropped to 3,760, reaching its lowest level since February 2024. Since November, the index has fallen by 15%, possibly indicating increased investor caution. The last similar sharp decline occurred in 2021 after China banned mining.

🔷The index considers active addresses, transactions, and transferred volume. A drop below the 365-day moving average could signal a cooling market. Key factors include anticipation of decisions from the Trump administration and the SEC regarding cryptocurrency regulation.

🔷Despite this, Bitcoin’s long-term metrics remain stable, and institutional investments continue to grow. If historical trends repeat, this period of low activity could be followed by a new rally.