Bitcoin On-Chain Activity is Flashing Warning Signs

Bitcoin On-Chain Activity Report, January 2025

The dynamic has changed for Bitcoin after the FOMC meeting in December.

It was initially hard to tell because of the traditionally quieter end-of-year period. But now in mid-January, we can clearly see a deterioration in market conditions.

This is particularly obvious in the on-chain activity. Let's examine the data and its implications.

---

The Ecoinometrics newsletter gives you insights from crypto and macro data to help you make better investment decisions.

We spend hours every day gathering data, creating metrics and bringing them to life with data visualizations that allow you to quickly get to the heart of things.

We then distill all that knowledge in each issue of the newsletter with less words and more charts so that you get insights, direct to the point, in five minutes or less.

Join more than 28,000 investors here:

Done? Thanks! That’s great! Now let’s dive in.

---

Bitcoin On-Chain Activity is Flashing Warning Signs

The Takeaway

Bitcoin's on-chain activity is showing signs of reaching a top, marking a potential shift in market dynamics following December's FOMC meeting.

While this doesn't necessarily predict an immediate price decline, historical patterns suggest that periods of declining on-chain activity typically lead to neutral rather than positive price action for BTC, indicating limited upside potential in the near term.

On-Chain Activity is Hitting a Top