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Bitcoin On-Chain Activity Slows as Profitability Takes a Hit
February 24, 2025 – Written by José Gustavo
A recent analysis of Bitcoin’s (BTC) on-chain activity reveals a concerning trend. New addresses created have plummeted below the yearly average, signaling weaker network fundamentals and reduced utilization. This downturn is accompanied by a sharp decline in profitability.
In this article, we will explore these findings and their implications for the cryptocurrency market.
The chart provided by Ali_charts shows that the monthly average of new BTC addresses has dropped significantly since April 2024. This decrease indicates that fewer users are actively participating in the network, suggesting weaker fundamentals and reduced utilization. A declining trend like this typically does not bode well for Bitcoin’s future performance.
Moreover, an examination of Bitcoin’s supply in profit reveals a striking correlation between price movements and profitability. The data highlights the stark contrast between uptrends and downtrends.
A significant price increase during April 2024 led to an enormous rise in the total supply in profit. In other words, as the market rallied, more supply moved into profit. Conversely, when prices fell between June and September 2024, the total supply in profit declined, indicating a shift towards loss-making positions.
Furthermore, the data suggests that Bitcoin’s on-chain activity slows as profitability takes a hit.
Source: https://cryptonewsland.com/bitcoin-on-chain-activity-slows-as-profitability-takes-a-hit/
