Bitcoin Network Activity Improves as Fund Demand Remains Weak

Bitcoin's network activity has been improving despite its price remaining below previous highs. According to CryptoQuant, in 2024, network activity moved in tandem with price action as Bitcoin approached the $100,000 zone. However, in 2025, this relationship diverged when network activity plummeted.

The divergence suggests that Bitcoin adoption is strengthening beneath the surface, even as investors remain cautious about the price outlook. Recently, however, the trend has reversed, and growing usage is appearing before a major price recovery.

Despite improving network activity, fund demand continues to weaken. The Fund Market Premium fell into negative territory as Bitcoin moved down toward $63,100. This indicates that institutions and investors are still unwilling to pay more than Net Asset Value (NAV) for exposure.