Bitcoin's On-Chain Activity Weakens Amid Stable Trading Volumes

Bitcoin's on-chain activity has been showing signs of weakness over the past six months, despite stable trading volumes. This trend is reflected in a decline in active addresses, which could be a contrarian signal of structural weakness in the bull market.

According to data from Glassnode and CryptoQuant, the number of active addresses on Bitcoin's network has declined by around 30% over the past six months. This is a concerning trend, as it suggests that fewer entities are participating in on-chain activity.

The decline in active addresses is not reflected in trading volume, which remains stable. However, this divergence is critical, as it signals that Bitcoin's on-chain footprint is narrowing, while market exposure remains active elsewhere.