 
 
Bitcoin may be in familiar territory price-wise, but on-chain data suggests its current cycle is playing out differently from past runs. According to analyst DarkFost, the number of active Bitcoin addresses has been in steady decline since 2021.
“Several data points confirm that the BTC market is evolving: the reasons people buy Bitcoin are shifting, and the type of investor itself is changing,” DarkFost noted on X. While the overall structure remains intact, the makeup of participants and how they interact with BTC is diverging from historical norms.
One key driver is the rise of centralized exchanges, which now offer yield products that encourage investors to keep holdings off-chain. The launch of spot Bitcoin ETFs in 2024 intensified this trend, making it easier for traders to gain exposure without managing wallets or securing assets themselves.
Combined with dormant long-term holders no longer registering as active, these shifts help explain why address activity no longer mirrors price rallies.
The structural change comes as institutional adoption accelerates. U.S.-listed Bitcoin ETFs now hold a sizeable portion of the circulating supply, with weekly inflows shaping price momentum.
 
Some U.S. states are even exploring BTC reserves, while federal discussions around a “Strategic Bitcoin Reserve” highlight its growing role as a macro asset.
Momentum Meets Mixed Signals
Recent market data highlights the bullish implication. Digital asset products attracted $3.3 billion last week, with Bitcoin drawing $2.4 billion; its strongest haul since July. Assets under management (AuM) now sit near record highs at $239 billion, signaling a return of confidence.
At press time, Bitcoin trades at $115,748, up 2.6% on the week with a $2.3 trillion market cap. Technicals show resistance around $117K–$118K, while whale activity and exchange inflows suggest potential volatility.
Meanwhile, upcoming upgrades such as BIP-119, focused on smart contract functionality, and planned quantum resistance measures by 2027 could redefine Bitcoin’s long-term role in DeFi.
For now, investor behavior is rewriting old assumptions. The big question is whether ETF inflows and institutional adoption can sustain momentum, even as on-chain activity tells a different story.
Source: https://zycrypto.com/the-most-important-on-chain-metrics-suggest-a-massive-change-in-bitcoins-cycle/