Bitcoin Activity Spikes, Price Falls Amid Speculation
Key Takeaways
- Bitcoin reached its highest level in six months with over 925,000 active addresses.
- Despite this, the price dropped by 2% – indicating speculative behaviour rather than genuine demand.
- A BTC target of 100,000 USD remains speculative for now.
- Declining network activity suggests waning market interest.
Strong Network Activity, but No Price Increase
On May 2, 2025, the Bitcoin network recorded 925,914 active addresses – the highest number in six months. At that time, Bitcoin was trading at approximately 96,951 USD. Despite this activity, the price dropped by nearly 2% the following day.
A similar pattern occurred on March 7, when active addresses rose to 860,000. A price drop followed then as well. This trend points to a so-called bearish divergence: on-chain activity increases while the price declines.
Speculative Moves Instead of Genuine Demand
On the day of the address peak, around 5,000 BTC – approximately 484 million USD – flowed into derivatives exchanges. This indicates speculative leveraged positions rather than long-term purchases.
Genuine demand is typically reflected by outflows from exchanges, when investors move their coins to private wallets. Such outflows were last observed on April 29, when the price was at 94,280 USD. Since then, net flows have stagnated.
Drop in Active Addresses as a Warning Sign
Just one day after the peak, the number of active addresses fell to 618,000 – a two-week low. This decline shows that many market participants are hesitant to buy Bitcoin at the current price level.
This suggests a certain exhaustion in the market. Hopes for a quick rise to 100,000 USD may therefore be premature.
You should read that too:
-
Asian Slots – The Best Asia-Themed Online Slot GamesReading time: ~ 2 minutes
-
Magic Slots – The Best Magic-Themed Slots
Reading time: ~ 2 minutes
-
Food and Drink Slots: The Best Slot Games Inspired by Culinary Delights
Reading time: ~ 2 minutes
-
The Best Jackpot Slots & Casinos 2025
Reading time: ~ 2 minutes
-
Versus Odds B.V. Casinos
Reading time: ~ 2 minutes
What Does This Mean for You?
If you invest in Bitcoin or are considering it, you should keep an eye on current on-chain data. High network activity is not automatically a buy signal. What matters is whether the movements reflect genuine demand or speculative trades.
Current data points more towards the latter. Until clear outflows from exchanges reappear, the market remains vulnerable to pullbacks.
Our Assessment
The short-term hype surrounding Bitcoin appears to be fading. Despite high network activity, there is a lack of fundamental support through genuine demand. The decline in active addresses and stagnant net flows argue against a sustainable upward trend.
A price target of 100,000 USD is not out of the question, but from today’s perspective, it remains speculative. Those looking to invest long term should focus on stable fundamentals – not just short-term price movements.
Sources
- Glassnode
- CryptoQuant
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 109485 |
| 24h % | 2.40 % |
| 7d % | 5.78 % |
| 30d % | 25.67 % |
| 60d % | 30.42 % |
| 1y % | 56.00 % |
| Market Cap | $2,170,420,777,404.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
Advertising transparency