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

Popular cryptocurrency analyst Ali Martinez argued that Bitcoin (CRYPTO: BTC) is shifting from a peer-to-peer currency to a store of value, citing a sharp dip in network activity.

Analyst Spotlights Drop In BTC Active Addresses

Martinez took to X, highlighting a 42.6% decline in Bitcoin’s active addresses since 2021, citing data from on-chain analytics firm Glassnode

“This illustrates the shift from peer-to-peer cash toward a store of value,” he stated.

Since 2021, Bitcoin $BTC network activity has dropped by 42.6%.

This illustrates the shift from peer-to-peer cash toward a store of value. pic.twitter.com/tf3KRt4suf

— Ali Charts (@alicharts) December 28, 2025

Drop In Bitcoin Liquid Supply

It was interesting to note that Bitcoin’s exchange supply ratio, calculated as the total number of BTC held in exchange wallets divided by the total supply, has fallen significantly since January 2023, as indicated by data from CryptoQuant.

A decline in exchange reserves means a drop in liquid supply, typically due to investors’ preference for HODLing instead of trading.

Similarly, Bitcoin’s Mean Coin Age, which shows the average time all BTC were dormant before moving, rose 16% since January 2023, indicating more HODLing and less trading.

See Also: Bitcoin (BTC) Price Predictions: 2025, 2026, 2030

Bitcoin Far From ‘Digital Gold’

That said, Bitcoin’s performance in 2025 failed to demonstrate its reputation as a reliable store of value.

​After hitting new highs, the apex cryptocurrency derailed in the year's last quarter, wiping away all of its 2025 gains. Bitcoin currently trades 4.23% lower than it was at the start of the year.

In contrast, precious metals like gold and silver, including their cryptocurrency counterparts, proved to be the real wealth preservers.

Physical gold-backed cryptocurrencies, such as Tether Gold (CRYPTO: XAUT) and PAX Gold (CRYPTO: PAXG), have surged over 70% this year.

Price Action: At the time of writing, BTC was exchanging hands at $89,520.69, up 2.19% in the last 24 hours, according to data from Benzinga Pro.

Read Next: 

• Michael Saylor Once Mirrored Warren Buffett And ‘Dr Doom’ While Predicting Bitcoin’s ‘Days Are Numbered’ — It Was A ‘Big Mistake’

Photo courtesy: PV productions on Shutterstock.com