Bitcoin's On-Chain Activity Slump Leads Analyst To Claim Apex Crypto's Shift From P2P Cash To Store Of Value

Core Insights - Bitcoin is transitioning from a peer-to-peer currency to a store of value, as indicated by a significant decline in network activity and active addresses [2][3]. Group 1: Bitcoin Network Activity - There has been a 42.6% decline in Bitcoin's active addresses since 2021, suggesting a shift in usage patterns [2]. - Bitcoin's exchange supply ratio has decreased significantly since January 2023, indicating a reduction in liquid supply as investors prefer to hold rather than trade [2][3]. - The Mean Coin Age of Bitcoin has increased by 16% since January 2023, further reflecting a trend towards HODLing [4]. Group 2: Bitcoin's Performance - Bitcoin's performance in 2025 has not supported its image as a reliable store of value, with a 4.23% decline from the start of the year [6]. - In contrast, physical gold-backed cryptocurrencies have seen substantial growth, with increases over 70% this year, highlighting their role as effective wealth preservers [7].