Oct 14, 2025
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Bitcoin Network Usage Declines Below 365-Day Average in 2025
Bitcoin (BTC) experienced a flash crash to $102,000 on October 9, recovering most losses. However, on-chain signals show a decline in Bitcoin network usage throughout 2025.
Key Insights:
- The Bitcoin Network Activity Index has been below its 365-day moving average, indicating reduced on-chain engagement.
- Previously, during 2023-24, increased network activity correlated with price growth driven by genuine on-chain usage.
- In 2025, liquidity moved off-chain through ETFs and custodians, reducing on-chain traffic and causing the Network Activity Index to drop.
- BTC price remains between $100,000 to $120,000, with valuations increasingly disconnected from network fundamentals.
- The current capital rotation does not reflect network strength but suggests momentum without substantial backing.
Despite concerns, some analysts believe the bull market is ongoing. According to Titan of Crypto, a bear market will start if BTC loses the 50-day Simple Moving Average (SMA) on the weekly chart.
Q4 2025 Predictions:
- Industry experts predict BTC may reach new record highs in Q4 2025.
- Crypto analyst Ash Crypto forecasts BTC hitting $180,000.
- Binance data suggests a potential target zone of $130,000 for BTC.
- Analyst Egrag predicts a surge to $175,000 with a minor catalyst.
- Currently, BTC trades at $114,076, up 0.8% over the past 24 hours.
