Bitcoin Network Activity Index Signals Bear Market Zone

Recent on-chain data indicates that Bitcoin's network activity has declined, entering a bear market zone. Key points include:

The Bitcoin Network Activity Index from CryptoQuant is currently signaling a bear phase.
This index tracks various activity metrics such as transaction count and daily active addresses.
Since December, the index has sharply decreased, suggesting reduced demand for network usage.
A decrease in network activity typically indicates potential price declines.
This bear signal has persisted even during recent recovery rallies.
Historically, similar signals have preceded bear markets but had exceptions during previous bull runs.

Furthermore, the combined market cap of stablecoins has reached an all-time high, which may positively impact other cryptocurrencies, including Bitcoin.

As of now, Bitcoin is priced at approximately $93,800, reflecting a 1% decrease over the past week.