Bitcoin has seen its network use fall to its weakest level in more than seven years as selling pressure and lower on-chain activity weigh on market confidence.
Summary
- Bitcoin active addresses dropped near 2019 bear market levels, according to Bitcoin Magazine’s 60-day moving average data.
- Bitcoin network use has declined since the 2021 bull market, as ETFs reduced direct on-chain transaction demand.
- The Genius Act helped stablecoin activity expand on Ethereum, Solana, and Tron, adding pressure on Bitcoin utilization.
Bitcoin Magazine data showed that the 60-day moving average of active Bitcoin addresses stood slightly above 600,000 on June 4. The reading placed Bitcoin’s address activity near levels last seen during the 2019 bear market, according to the same data.
Bitcoin active addresses return to 2019 levels
According to Bitcoin Magazine, the decline in active addresses has continued since the end of the 2021 bull market. The data showed a steady drop in wallet activity over several years, even as Bitcoin became more accessible through regulated investment products.
Spot Bitcoin exchange-traded funds changed how many investors gain exposure to BTC. After the products received approval, some investors moved toward ETF shares instead of direct on-chain transactions, according to the report. These products offered regulated access and deeper trading liquidity, which reduced the need for some investors to move Bitcoin across the network.
At the same time, Bitcoin has faced stronger competition from other layer-one networks. Ethereum, Solana, and Tron have continued to host stablecoin payments and frequent settlement activity, while Bitcoin remains mostly used as a store-of-value asset.
The report also linked part of the decline to the Genius Act, a U.S. law signed in July 2025 that created federal rules for stablecoin issuers. After the law took effect, institutional stablecoin activity expanded across chains built for faster and cheaper payments.
According to the report, more firms have used Ethereum, Solana, and Tron for stablecoin transfers, while Bitcoin has seen less frequent transactional demand. The trend has added pressure to Bitcoin’s active-address count, which remains one of the key measures used to track network participation.
BTC price slides as sentiment weakens
Bitcoin traded near $63,950 at the time of reporting, down more than 26% since the start of the year. The decline has kept market attention on the February 2026 support area, where traders previously watched for buyer interest.
As previously reported by crypto.news, Bitcoin had rebounded from an intraday low near $61,500 after weaker-than-expected U.S. labor market data raised expectations that the Federal Reserve could still cut interest rates later in 2026.
The U.S. Department of Labor reported that initial jobless claims for the week ended May 30 rose by 13,000 to 225,000. Economists had expected 215,000 claims, while the prior week’s reading was revised higher to 212,000.
Labor data offers limited relief
Additional Labor Department figures showed final labor costs rose 1.8% in the first quarter, below economists’ estimate of 2.5%. Continuing jobless claims fell by 8,000 to 1.777 million for the week ended May 23.
Market participants often view weaker labor data as supportive for risk assets because it can give the Federal Reserve more room to lower interest rates if economic conditions soften further.
However, the report warned that Bitcoin’s network activity may remain under pressure if capital continues moving into artificial intelligence-related stocks. A recovery in active addresses could support bullish sentiment, but Bitcoin’s current on-chain data shows participation remains weak compared with previous market cycles.
