Bitcoin Network Activity Falls to 7-Year Low as Price Holds Near $64,000
Bitcoin’s on-chain activity has fallen to its lowest level in more than seven years, even as the world's largest cryptocurrency continues to trade above $63,000.
Summary:
- Bitcoin’s 60-day average active addresses have fallen to seven-year lows near 600,000.
- BTC remains above $63,000 despite a sharp decline in on-chain participation.
- Institutional adoption and off-chain trading continue to reshape network activity metrics.
New data shows the 60-day average of active Bitcoin addresses has dropped to just above 600,000, a level last seen during the depths of the 2019 bear market, highlighting a growing disconnect between network usage and market valuation.
The divergence has reignited debate among analysts about whether traditional on-chain indicators remain reliable in an increasingly institutionalized Bitcoin market. While active addresses have historically served as a proxy for user demand and network health, the current cycle appears fundamentally different from previous bull and bear markets.
Bitcoin Network Usage Returns to 2019 Bear Market Levels
According to the latest network data from Bitcoin Magazine, shared by Coin Bureau, Bitcoin utilization has steadily declined throughout 2025 and into 2026. The 60-day moving average of active addresses has retraced to levels last recorded during the prolonged crypto winter that followed Bitcoin’s 2017 bull run.
At the same time, Bitcoin is trading near $63,600, a valuation dramatically higher than the sub-$10,000 levels associated with similar network activity readings in prior cycles.
This disconnect suggests that Bitcoin’s market structure has evolved significantly. Rather than relying on millions of retail users moving coins on-chain, a growing share of Bitcoin exposure now exists through spot ETFs, institutional custody solutions, centralized exchanges, and derivative markets.
As a result, substantial amounts of trading activity occur without generating corresponding blockchain transactions.
Institutional Adoption Is Changing Bitcoin’s On-Chain Footprint
One of the most important shifts in the current cycle is the migration of capital toward institutional investment vehicles.
Spot Bitcoin ETFs, corporate treasury allocations, and large custodial platforms allow investors to gain exposure without directly interacting with the BTC blockchain. Thousands of investors may effectively be represented by a single custodial wallet, reducing address growth while preserving demand for the asset itself.
This structural transformation means lower network activity no longer necessarily signals weakening investor interest.
Instead, Bitcoin increasingly resembles a settlement layer where large-scale value transfers occur behind the scenes while trading activity remains concentrated in off-chain markets.
READ MORE: Strive Expands Bitcoin Holdings to $1.35 Billion With Latest Purchase
The trend has become particularly visible during recent volatility. Despite Bitcoin falling from roughly $64,800 to intraday lows near $61,873 during the June 3–4 selloff, on-chain activity failed to show the type of panic-driven surge that characterized previous market corrections.
Technical Analysis: Bitcoin Attempts Recovery Above Key Support
From a technical perspective, Bitcoin remains under pressure despite staging a modest rebound from recent lows.
The 30-minute TradingView chart shows BTC trading around $63,583 after briefly falling below $62,000 during a sharp liquidation event. Price has recovered above the 20-period moving average near $63,346 but continues to face resistance from the 50-period moving average around $64,052.
More importantly, Bitcoin remains below its 100-period and 200-period moving averages at approximately $65,486 and $68,666 respectively, confirming that the broader short-term trend remains bearish.
Momentum indicators suggest selling pressure may be easing. The Relative Strength Index (RSI) has recovered to 48.9 after previously dipping into oversold territory, indicating that buyers are attempting to regain control. However, a decisive move above $64,000 – $64,100 is likely needed to confirm a stronger recovery.
Key levels to watch include:
Support
- $63,300
- $62,000
- $61,800
Resistance
- $64,050
- $65,500
- $68,600
A break below recent lows could expose Bitcoin to additional downside toward the psychological $60,000 level, while reclaiming $65,500 would improve the near-term outlook considerably.
Is Low Activity a Warning Sign or a Contrarian Signal?
Historically, extreme declines in network activity have often occurred near major market bottoms rather than cycle tops.
Periods of reduced participation frequently coincide with the departure of short-term speculators, leaving long-term holders and institutional investors to accumulate assets during consolidation phases. Some analysts argue that declining activity reflects a healthy market reset rather than a deterioration in Bitcoin’s fundamentals.
At the same time, others caution that prolonged weakness in user engagement could limit future demand growth if retail participation fails to return.
The reality may lie somewhere in between. Bitcoin’s role is evolving from a retail-driven transactional network into a global digital reserve asset increasingly dominated by institutions, ETFs, and long-term capital allocators.
$1.72 Billion in Liquidations Signals Forced Market Reset
The recent selloff triggered one of the largest derivatives flushes of 2026, highlighting the extent of leverage that had accumulated across the crypto market. According to CoinGlass data, approximately 286,277 traders were liquidated over the past 24 hours, with total liquidations reaching $1.72 billion. Long positions accounted for $1.41 billion of those losses, compared with $305.8 million in short liquidations, underscoring how aggressively bullish traders were positioned before the correction.
The liquidation heatmap reveals that Bitcoin led the market-wide deleveraging event, accounting for nearly $796 million in forced liquidations, followed by Ethereum at $381 million and Solana at $86.9 million. Hyperliquid’s HYPE token, which has recently attracted significant speculative activity, recorded approximately $36.5 million in liquidations. The largest single liquidation order occurred on the Hyperliquid platform, where a BTC-USD position worth $16.19 million was forcibly closed.
From a market structure perspective, these liquidation events often serve as a mechanism for removing excessive leverage from the system. While the immediate impact creates sharp downside volatility, large-scale long liquidations can also reset funding rates, reduce speculative excess, and establish conditions for a healthier recovery. Historically, major deleveraging events have frequently preceded periods of consolidation or accumulation as weaker hands exit the market and longer-term investors begin rebuilding positions.
Why the Liquidation Data Matters
The significance of the $1.72 billion liquidation event extends beyond the headline figure. Combined with Bitcoin’s seven-year low in network activity, the data suggests the market is undergoing a broad transition from speculative participation toward a more defensive environment. Retail traders have largely retreated, leverage is being aggressively unwound, and institutional investors appear to be focusing on capital preservation rather than risk expansion.
For investors, the key question is whether this deleveraging marks the final phase of a healthy market reset or the beginning of a deeper correction. If Bitcoin can maintain support above the $62,000-$63,000 region while leverage continues to decline, the current flush could ultimately be remembered as a necessary cleansing event rather than the start of a prolonged bear market.
Market Perspective
The current seven-year low in active addresses should not be viewed in isolation. Unlike previous cycles, Bitcoin now operates within a vastly different ecosystem shaped by regulated investment products, corporate treasury adoption, and institutional custody solutions.
While declining network activity highlights weaker retail engagement and reduced speculative participation, it does not necessarily indicate a collapse in underlying demand.
For investors, the more important question may be whether Bitcoin can maintain support above the $62,000-$63,000 region while network utilization remains subdued. If price stability persists despite historically low activity levels, it would further reinforce the argument that Bitcoin’s value proposition is becoming increasingly detached from traditional on-chain usage metrics and more closely tied to its role as a macro financial asset.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
