Bitcoin's active supply has dropped by 17%, indicating a significant slowdown in on-chain activity . This decrease is observed despite the cryptocurrency's price remaining stable above $100,000 in mid-2025 . The reduction in active supply suggests that a substantial number of Bitcoin holders are opting to hold onto their assets .
This trend may indicate a period of market consolidation, where prices remain relatively stable as investors hold onto their assets in anticipation of future price movements . Various factors could influence this trend, including investor sentiment, regulatory developments, and broader economic conditions . The decrease in active supply also highlights the growing trend of long-term holding, or "HODLing," among Bitcoin investors, who are increasingly viewing the cryptocurrency as a store of value rather than a speculative asset .
The recent dip in active supply mirrors a similar 17% decrease observed in September 2024, which historically preceded a significant upward rally in Bitcoin's price . This historical pattern suggests that the current market conditions may be setting the stage for a potential bullish reversal in the near future . On-chain analyst Axel Adler Jr. notes that while short-term supply activity has cooled, long-term network metrics continue to reflect robust growth and sustained investor engagement .
The 365-day active supply change remains stable, indicating that overall network engagement and coin movement over extended periods continue to support Bitcoin's growth narrative . This divergence between short and long-term metrics suggests that while traders may be pausing, long-term holders and institutional participants maintain steady involvement, reinforcing Bitcoin's market foundation .
The current 17% drop in active supply is reminiscent of previous market corrections that ultimately led to bullish reversals, underscoring the importance of supply activity as a leading indicator for potential price action . Bitcoin is up 45% since bottoming out near $75,000 in April and is now trading just under 4% away from its all-time high of $112,000 .