Bitcoin network activity hits 7-year low as ETFs and stablecoins shift demand
Bitcoin network activity has fallen to its lowest level in more than seven years, with the 60-day moving average of active Bitcoin addresses just above 600,000 (June 4). The decline, starting after the 2021 bull run, mirrors weaker utilization seen around the 2019 bear market.
Traders should note the structural drivers behind the drop in Bitcoin network activity. Spot Bitcoin ETFs reduce some holders’ need to transact on-chain. Meanwhile, stablecoin usage increasingly concentrates on faster-payment networks. The article links part of that shift to the U.S. “Genius Act” signed in July 2025, which established federal stablecoin rules and boosted institutional stablecoin issuance and activity on Ethereum, Solana, and Tron—diluting Bitcoin’s share of transactional demand.
At reporting time, BTC is around $63,950 and down over 26% year-to-date, with attention on the February 2026 support zone. The piece also points to a short-term sentiment cushion from weaker-than-expected U.S. labor data, but warns Bitcoin network activity remains a headwind if capital keeps rotating into other sectors such as AI stocks.
For positioning: a sustained rebound in Bitcoin network activity is likely needed to restore bullish momentum. Without that, market confidence may stay fragile and downside pressure could persist.
Bearish
Bitcoin network activity at 7-year lows is typically consistent with weaker risk appetite and reduced on-chain utilization. The later article adds that spot Bitcoin ETFs and the July 2025 “Genius Act” are likely shifting transactional demand away from Bitcoin toward faster-payment ecosystems, where stablecoin activity is expanding on ETH/SOL/TRON. This reduces the immediate probability of a positive feedback loop from improving usage, keeping downside pressure relevant.
Short term, a weaker U.S. labor market print may provide a brief sentiment boost, but without stabilization (or a rebound) in Bitcoin network activity, rallies may lack fundamental support. Longer term, if capital continues rotating into other sectors like AI, Bitcoin could face sustained headwinds until active addresses recover meaningfully.