Bitcoin on-chain activity drops as Spot ETF demand grows

Published: 2026-06-02 18:55:00 |

Bitcoin on-chain activity is cooling compared with the 2021 peak, even as BTC stays supported by price. Santiment data shows daily active BTC addresses fell from about 1.12M (May 2021) to ~624K, and new wallet creation dropped from ~489K/day to ~278K/day (around -43% to -44%). Active addresses are used as a proxy for unique participants, while new wallets indicate fresh first-time interaction. The latest explanation links the weaker Bitcoin on-chain activity to Spot Bitcoin ETFs and institutional vehicles. When investors get BTC exposure via ETFs, they may transact without triggering the same level of on-chain wallet creation, while some demand attention shifts toward equities and precious metals. The article also notes that lower on-chain engagement is not automatically bearish, because on-chain activity often rises when volatility increases. In parallel, trading signals remain active: BTC was about $69,876 (+~5% on the day) and reported volume surged more than 134% over the past 24 hours. A separate near-term catalyst mentioned is Strategy’s sale of 32 BTC (first in ~3.5 years), which briefly pushed BTC below $72,000 after the announcement. However, Strategy still holds 843,706 BTC (nearly 4% of total supply).

Neutral

The news is primarily about Bitcoin on-chain activity weakening: both daily active addresses and new wallet creation have fallen ~40%+ versus the 2021 peak. That can signal slower retail-style participation or fewer on-chain transactions. However, both summaries argue this may reflect structural demand routing to Spot Bitcoin ETFs rather than outright loss of interest in BTC. With BTC still holding price strength and volume rising sharply, short-term trading activity appears intact. So the most likely impact on BTC is neutral: reduced on-chain participation may dampen some bullish “network growth” signals over the medium term, but it does not necessarily predict downside if ETF-driven exposure sustains demand and volatility re-accelerates on-chain later.