The Bitcoin Network Activity Index has recently declined into the bear market zone, indicating a decrease in demand for using the network. The index tracks activity-related indicators like transaction count and active addresses to gauge the situation on the blockchain. The metric has been sharply moving down since reaching a peak last year, implying waning demand. A surge in user activity is necessary for a sustainable price move, so a decrease in the index is considered a bad sign. The trend in network activity has entered a "bear phase", which has historically accompanied bear markets. However, there was an exception in the second half of the 2021 bull run, where the index signaled a bear phase despite the price rally. This suggests that the run was unlikely to last, and the price couldn't reach a higher top. Despite the bear signal, Bitcoin still witnessed a notable period of bullish momentum in 2021. The latest red signal could indicate a bear market, but it could also be a buying opportunity. Meanwhile, the combined market cap has reached an all-time high, which could be a bullish sign for the sector.

Fifteen minutes after the April employment report hit early Friday, President Donald Trump seized on the surprisingly strong job growth to ratchet up his pressure on Federal Reserve Chair Jerome Powell, saying there was no reason to hold off on cutting interest rates.