Bitcoin’s Bearish Woes: A Tale of Crypto Despair and Hope

It is a truth universally acknowledged, that a cryptocurrency in possession of a bear market must be in want of a silver lining. 🐻💎 Bitcoin (BTC), the most illustrious of digital currencies, finds itself ensnared in such a predicament. The network activity metric, in its prolonged “negative” state, suggests a correction far from the realms of health, as per the data spanning 2016 to 2025. Yet, amidst this gloom, a beacon of optimism shines for the Bitcoin (BTC) bulls.

The Bear Market’s Arrival: A Major Indicator Speaks

An indicator of Bitcoin (BTC) network activity has declared the segment to be in the clutches of a bear market. This proclamation was made by none other than Julio Moreno, the esteemed Head of Research at the CryptoQuant analytical platform.

Moreno graced his 19,200 followers on X with this insight earlier today, April 2, 2025.

Bitcoin Network Activity, an indicator of considerable repute, tracks key network metrics such as the active address count, number of transactions, number of UTXOs, and the size of each Bitcoin (BTC) block.

In this context, “negative” values for Bitcoin Network Activity metrics denote the indicator’s deviation beyond the trendline. A recession of similar magnitude was last witnessed in late 2021, during Bitcoin (BTC)’s previous bearish downturn.

While “red” periods may occasionally mar bullish phases, they are typically fleeting. The last such negligible dip into negative zones was observed in July 2024.

Macroeconomic Tensions: A Hindrance to Bitcoin (BTC)’s Ascent

Simultaneously, Bitcoin (BTC) derivatives contracts funding rates—a mechanism exchanges employ to maintain equilibrium between short and long positions—have plummeted below zero.

CryptoQuant community expert Axel Adler interprets this drop as a mixed signal for traders:

On the four major exchanges – Binance, ByBit, OKX, and Deribit – the average funding rate has dropped into negative territory, currently, the metric is just above zero. In this cycle, in four similar instances it ended with a price increase and once with a decline.

He attributes the potential liquidity inflow to the activities of corporate holders and seasoned investors. Conversely, selling pressure emanates from the “paper hands.”

Bitcoin (BTC), the preeminent crypto by market cap, is currently trading at $84,700, marking a 0.89% increase in the last 24 hours. The market benchmark has risen by 0.49%.

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2025-04-02 16:05