Recent on-chain data by Alphractal indicates that Bitcoinâs Active Supply growth has started to plateau. In simple terms â fewer previously idle coins are being moved across the network compared to earlier phases of the cycle.
What does this mean?
Active Supply reflects how much BTC is participating in economic activity (transfers, reallocations, profit-taking, etc).
When this metric grows:
âĄïž More coins enter active circulation
âĄïž Market participants are repositioning
When growth slows or flattens:
âĄïž Long-term holders may prefer to hold
âĄïž Traders may wait for clearer direction
âĄïž Overall network activity becomes more subdued
This kind of slowdown is commonly observed during:
âą Consolidation phases
âą Periods of uncertainty
âą Transitions between broader market trends
Itâs important to note that reduced activity is not inherently bullish or bearish â
it simply signals a temporary pause in participant-driven movement while the market searches for direction.
On-chain behaviour often evolves before broader sentiment narratives catch up.
For now, this points to a market becoming more cautious and selective with capital deployment.
đ Chart Source: Alphractal
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