Bitcoin Transactions Drop, But Holders Remain Strong

While bitcoin continues to capture the attention of the markets, the latest data shows a striking contrast between network activity and its net capital. Daily transfer volume has dropped by 76 %, while realized capitalization has surged by 160 billion dollars in three months. A dynamic that raises questions: are we witnessing a critical slowdown or a strategic consolidation before a new bullish impetus? Since its last peak beyond 100,000 dollars, bitcoin has struggled to maintain its momentum. The pressure is intensifying, and some analysts anticipate a possible drop below 90,000 dollars. However, despite a sharp decline in activity, the influx of fresh capital and the resilience of long-term investors offer an interesting counterpoint.

A Collapse in Bitcoin Network Transaction Volume

The latest statistics shed light on a significant decrease in activity on the Bitcoin blockchain. This volume of daily transfers has dropped by 76 %, a sign that market enthusiasm is waning. At the same time, the number of active wallets has decreased by 74 % in just seven days, an indicator that reflects a marked slowdown in exchanges.

According to Axel Adler Jr., a specialized analyst, this situation arises from a lesser participation of short-term investors. Fewer transactions mean lower fees collected on the network, which could also affect miners’ profitability. “The Bitcoin network is going through a latency phase marked by a drop in transactional activity,” explains him in a publication dated February 23, 2025. This decrease in network usage coincides with a more hesitant market, where institutional investors show signs of caution.

Long-term Investors Hold Firm Amid Uncertainty

While Bitcoin network activity is declining, some signals suggest that the market remains fundamentally solid. The realized capitalization, which represents the total value of BTC based on their last purchase price, has increased by 160 billion dollars. Sina G, co-founder of 21st Capital, highlights in a post on platform X on February 24, 2025, that “new net capital has been injected into the market, reinforcing the robustness of bitcoin.” Contrary to appearances, this is not a capital exodus, but a strategic redistribution of assets.

However, downward pressures remain. The drying up of flows to spot Bitcoin ETFs is also concerning: 364 million dollars in outflows were recorded on February 20, a sign of caution among institutional investors.

The current state of bitcoin perfectly illustrates the tension between a phase of accumulation and a risk of correction. On one side, long-term holders remain confident, and the new influxes of capital suggest a resurgence of strategic interest. On the other hand, the decrease in transactions and institutional flows could signal an exhaustion of the bullish momentum.