#Bitcoin is often described as having two big strengths: acting like digital gold because its supply is limited to 21 million coins, and working as a payment system that lets people send money directly without banks.
Right now, it isn’t doing very well at either role. Compared with gold, silver, and other precious metals, Bitcoin has been underperforming. At the same time, activity on the Bitcoin network has slowed a lot.
Data shows that the number of daily payments on Bitcoin’s blockchain has fallen to levels last seen in mid-2025. On average, about 748,000 payments are being processed per day over the past month, down from more than 884,000 in September. The total number of monthly transactions is also dropping, and the “mempool” the waiting area for unconfirmed transactions has shrunk to just a few thousand per day, a trend that has continued since late 2025.
Market experts say these on-chain signals suggest the market is moving sideways rather than seeing strong new buying. Fewer active users and lower transaction volumes show that both institutions and retail traders are being more cautious.
Because a crypto’s price is closely linked to how much its network is used, this slowdown helps explain why Bitcoin’s price has looked weak lately.
Bitcoin recently slipped back to around $87,500 after touching above $90,000 ahead of the Federal Reserve meeting. The Fed kept interest rates unchanged, but its comments hinted that rate cuts might take longer than expected, which weighed on crypto markets.
Some of the hottest areas earlier in the week have now fallen sharply. Memecoins dropped more than 9% in a day, while metaverse and entertainment-focused tokens slid over 5%.
Meanwhile, gold-backed tokens like PAXG and XAUT went up as gold prices kept rising. Worldcoin’s WLD also climbed about 5%.
Outside crypto, oil prices jumped to four-month highs, raising worries about inflation worldwide. If energy-driven inflation continues, it could make it harder for the Fed to cut rates in the future something markets are watching closely.