Bitcoin activity has reached a one-year low, characterized by a significant drop in daily transactions and a decrease in network usage. The Bitcoin Network Activity Index has fallen by 15% since its peak in November 2024, registering its lowest level since February 2024. Daily transactions have plummeted to 346,000, a 53% decrease from the earlier high of 734,000. A notable decline in the use of Runes Protocol, a method for issuing fungible tokens on the Bitcoin network, has contributed to this drop. Despite the reduced activity, the demand from long-term holders is increasing, which may signal potential price growth. Historical patterns suggest that spikes in permanent holder demand often precede BTC price rallies. Overall, long-term holders, who accumulate Bitcoin over time without selling, create less sell-side pressure, indicating confidence in the asset as a store of value.

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