Recent price action has left Bitcoin lagging behind other major assets, and new on-chain data suggests the weakness may be more structural than temporary.

While equities, precious metals, and macro indicators point to a healthy global environment, Bitcoin’s momentum has continued to fade beneath the surface.

Key Takeaways

• On-chain data from CryptoQuant shows declining active addresses

• Some investors believe institutional flow management may be suppressing sustained upside.

• Bitcoin’s stagnation stands out as equities, metals, and U.S. economic data continue to show strong momentum. 

Fresh analysis shared by CryptoQuant highlights a steady decline in network activity. One of the clearest signals comes from active address data, which has slowed alongside price action. Historically, sustained rallies have been accompanied by expanding address activity, reflecting rising participation and capital inflows.

CryptoQuant notes that active address trends are closely tied to over-the-counter and on-chain transaction flows. When address growth stalls, it often signals reduced engagement from both retail and larger market participants. The current slowdown suggests that buying pressure is weakening not just on exchanges, but across the broader Bitcoin ecosystem.

Buying Pressure Continues to Weaken Across Market and On-Chain Data

“Active address metrics can be closely linked to OTC activity on-chain, and this slowdown is a clear indication that overall market participation and vitality are fading.” – By @mignoletkr pic.twitter.com/UuSQ2oZqlY

— CryptoQuant.com (@cryptoquant_com) December 23, 2025

Rather than signaling outright distribution, the data points to a market that is losing energy. Participation is thinning, and without fresh inflows, price advances struggle to gain traction.

Institutional behavior under scrutiny

Beyond on-chain metrics, some investors and market observers are increasingly pointing to institutional flow dynamics as a possible contributor to Bitcoin’s lack of upside momentum. In particular, attention has turned toward BlackRock and the behavior of its spot Bitcoin ETF.

According to this view, large allocators may be using a measured distribution strategy rather than aggressive selling. The theory suggests that institutions wait for local price peaks, offload a portion of holdings, then step back until another rally attempt forms. Over time, this pattern can suppress sustained upside without triggering sharp declines, creating a grinding, sideways market.

While difficult to prove definitively, the logic resonates with current conditions. Bitcoin has repeatedly failed to follow through on breakout attempts, even as broader risk assets continue to push higher.

BlackRock’s outlook vs short-term price action

BlackRock has maintained a constructive long-term stance on Bitcoin, recently placing it alongside U.S. Treasury bills and large-cap U.S. equities as a core investment theme for 2025. That positioning frames Bitcoin as a strategic allocation rather than a short-term trade.

Some investors argue this long-term confidence may coexist with tactical execution. Under that view, large allocators could be trimming exposure into local price peaks while waiting for new entry points, a pattern that may be dampening Bitcoin’s ability to sustain breakouts. Combined with weakening on-chain participation, this dynamic could help explain why price momentum remains muted despite supportive macro conditions.

A stark contrast with the macro backdrop

What makes Bitcoin’s stagnation more notable is the strength elsewhere in global markets. U.S. equities continue to trade near record levels, gold and silver are surging, and the broader U.S. economy is sending strong signals. Recent GDP data has exceeded expectations by a wide margin, reinforcing the narrative of resilient growth rather than slowdown.

In past cycles, this kind of macro environment often coincided with stronger demand for risk assets, including Bitcoin. The divergence suggests that Bitcoin-specific factors, rather than macro headwinds, may be the dominant force holding prices back.

Momentum problem, not a panic signal

Taken together, the picture that emerges is not one of fear or capitulation, but of exhaustion. On-chain activity is cooling, participation is fading, and large players may be managing exposure opportunistically rather than pressing bets higher.

Without renewed demand from either retail or institutions, Bitcoin may continue to drift even as traditional markets thrive. For now, the data suggests that the challenge see is not selling pressure, but the absence of enough buying power to overcome it.

Until participation metrics recover and fresh capital re-enters the market, Bitcoin’s struggle to build bullish momentum may persist – regardless of how favorable the macro backdrop looks elsewhere.