The CryptoQuant Bitcoin Network Activity Index shows a 15% decline in activity since its peak in November 2024, with the index reaching its lowest level in a year. This decrease in activity is primarily due to a significant drop in the number of transactions on the Bitcoin network, falling by 53% since September 2024. The decline is attributed to a decrease in the use of the Runes Protocol for token minting on the blockchain. Additionally, Bitcoin's mempool traffic has fallen by 99%, indicating reduced activity. Based on network activity, Bitcoin's fair value is estimated to be between $48,000 and $95,000, suggesting the current market price of around $98,000 may be overvalued. However, some analysts see this as a buying opportunity, while others believe Bitcoin is in the distribution phase of the market cycle. Despite short-term concerns, BTC's long-term outlook remains bullish, with a prediction that it could reach $200,000 by the end of 2025. Currently, BTC is trading at $97,914.



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