Bitcoin Network Faces Stagnation: Active Supply Reaches a Standstill Amid Price Fluctuations
The Bitcoin network exhibits signs of inactivity, hinting at reduced participation and engagement from users, as price volatility diminishes.
Bitcoin is currently trading around the mid-$60,000 range after losing a considerable amount of value since its peak in late 2025. Efforts to reclaim the significant $70,000 level have been unsuccessful despite multiple attempts.
Recent data from Alphractal suggests that the on-chain activity of Bitcoin, the largest cryptocurrency, is exhibiting signs of stagnation.
Signs of Bearish Divergence
Alphractal has reported that the active supply of Bitcoin has ceased to grow, indicating a decrease in the number of BTC moving on the network and a slowdown in overall activity. This declining trend reflects broader market phenomena, as the combination of lower prices and growing uncertainty has resulted in users becoming less active.
According to Alphractal, holders are increasingly keeping their coins inactive, leading to a quieter network. This trend is described as “social demotivation” caused by emotional fatigue and reduced engagement from users. These behavioral shifts usually precede significant changes in market perspectives.
Data from Santiment shows a notable decrease in Bitcoin’s network activity compared to levels seen in 2021, with 42% fewer unique BTC addresses participating in transactions and a 47% drop in the creation of new addresses. While these patterns do not imply that the cryptocurrency market is facing extinction or that a prolonged bear market is unavoidable, there is a clear bearish divergence that has developed throughout 2025, as overall market capitalizations consistently reached new peaks even as Bitcoin’s on-chain activities diminished.
Increased Whale Accumulation
Despite the decline in on-chain activity, large Bitcoin holders (whales) have ramped up their accumulation efforts. Recently, Bitcoin whale accumulation has surged, increasing by over 200,000 BTC in just weeks. While inflows from whales to exchanges typically signal short-term selling activity, overall holdings among whales have been on the rise.
To gauge behavioral trends over an extended period, CryptoQuant measures whale-held supply using monthly averages rather than transient flows. This metric experienced a sharp decrease to nearly -7% as of December 15 but has since rebounded, with whale holdings increasing by 3.4% in the last month.
During this period, Bitcoin holdings among whales grew from about 2.9 million BTC to over 3.1 million BTC. CryptoQuant has previously noted that a similar pattern of accumulation occurred during the April 2025 market correction, where whale buying helped absorb selling pressure and supported the BTC rally from $76,000 to $126,000. Currently sitting 46% below its all-time high, this price level may be motivating larger holders to accumulate further.
