Bitcoin’s network utilization has dropped to its lowest level in more than seven years, with key metrics pointing to declining user engagement amid ongoing selling pressure. Data from Bitcoin Magazine shows that the 60-day moving average of active addresses fell to just over 600,000 on June 4, a figure that mirrors readings from the 2019 bear market. This sustained slump in wallet activity has persisted since the conclusion of the 2021 bull run, even as Bitcoin gained wider accessibility through regulated products.
The introduction of spot Bitcoin exchange-traded funds has shifted how many investors gain exposure to the cryptocurrency. Rather than executing direct on-chain transactions, a growing number of participants now turn to ETF shares, which offer regulated access and deeper trading liquidity. This trend has reduced the need for moving Bitcoin across the network, contributing to the drop in active addresses.
Competition from other layer-one blockchains has also intensified. Ethereum, Solana, and Tron have become primary venues for stablecoin payments and frequent settlements, while Bitcoin remains predominantly used as a store of value. The Genius Act, a U.S. law enacted in July 2025 that established federal rules for stablecoin issuers, has further accelerated institutional stablecoin activity on faster and cheaper chains. Consequently, Bitcoin has experienced less transactional demand, compounding the pressure on its active-address count.
Meanwhile, Bitcoin’s price has weakened considerably, trading near $63,950 at the time of reporting—a decline of more than 26% since the start of the year. The February 2026 support level remains a key area of focus for traders monitoring buyer interest. A recent bounce from an intraday low of around $61,500 followed weaker-than-expected U.S. labor data, which raised hopes that the Federal Reserve might cut interest rates later in 2026. Initial jobless claims for the week ended May 30 rose to 225,000, exceeding economists’ forecasts of 215,000. Additionally, final labor costs for the first quarter increased by 1.8%, below the 2.5% estimate. Continuing jobless claims fell by 8,000 to 1.777 million.
While weaker labor data is often seen as supportive for risk assets due to potential Fed rate cuts, the report warns that Bitcoin’s network activity may continue to suffer if capital flows into artificial intelligence-related stocks. A recovery in active addresses could bolster bullish sentiment, but current on-chain data indicates participation remains feeble compared to previous market cycles.