Bitcoin’s on-chain activity has fallen to its weakest level in more than seven years. Data cited from Bitcoin Magazine showed the 60-day moving average of active Bitcoin addresses was slightly above 600,000 on June 4, a reading close to levels seen during the 2019 bear market.
The report said the decline in active addresses has continued since the end of the 2021 bull market. Wallet activity has trended lower for several years even as Bitcoin became easier to access through regulated investment products. That split matters. Exposure to BTC has broadened, while direct use of the network has faded.
ETF access reduced some need for on-chain transfers
After spot Bitcoin ETFs were approved, some investors shifted toward ETF shares instead of moving Bitcoin directly on-chain. According to the report, those products offered regulated access and deeper trading liquidity, cutting the need for part of the market to transact across the Bitcoin network.
Bitcoin is also facing stiffer competition from other layer-one blockchains. Ethereum, Solana, and Tron continue to host stablecoin payments and frequent settlement flows, while Bitcoin is still used mainly as a store-of-value asset. That difference in usage is showing up in network data.
Stablecoin growth moved activity to rival chains
The report also tied part of the drop to the Genius Act, signed in the United States in July 2025. The law created federal rules for stablecoin issuers. After it took effect, institutional stablecoin activity expanded across chains designed for faster and cheaper payments.
More firms have been using Ethereum, Solana, and Tron for stablecoin transfers, while Bitcoin has seen less transactional demand, according to the report. That has kept pressure on Bitcoin’s active-address count, one of the main indicators used to track participation on the network.
BTC trades near $63,950 as sentiment stays soft
At the time of reporting, Bitcoin was trading around $63,950, down more than 26% since the start of the year. The decline has pushed attention back to the support area watched in February 2026, where traders had previously looked for signs of buyer interest.
crypto.news had earlier reported that Bitcoin rebounded from an intraday low near $61,500 after weaker-than-expected U.S. labor data lifted expectations that the Federal Reserve could still cut interest rates later in 2026. The U.S. Department of Labor said initial jobless claims for the week ended May 30 rose by 13,000 to 225,000. Economists had expected 215,000, and the prior reading was revised up to 212,000.
Labor figures offered only limited support
Additional Labor Department data showed final labor costs rose 1.8% in the first quarter, below the 2.5% estimate from economists. Continuing jobless claims for the week ended May 23 fell by 8,000 to 1.777 million. Softer labor numbers are often seen as helpful for risk assets because they can leave the Fed with more room to cut rates if conditions weaken.
Even so, the report warned that Bitcoin network activity may remain under pressure if capital keeps moving into artificial-intelligence-related stocks. A rebound in active addresses could help sentiment, but current on-chain data still shows weaker participation than in previous market cycles.