Bitcoin is facing renewed selling pressure after slipping below the $71,000 mark, with on-chain metrics revealing a stark decline in network participation since the 2021 bull market peak. Data from analytics platform Santiment shows that daily active addresses have plunged 44%, from an average of 1.12 million in May 2021 to just 624,000 as of today. Meanwhile, the creation of new wallets has dropped by 43%, from 489,000 to 278,000 per day. These figures suggest that Bitcoin is attracting far fewer new users and generating far less transactional activity than during the height of the retail-driven boom five years ago.
Despite Bitcoin’s price still trading well above its 2021 cycle highs for much of the current market, the network tells a very different story. Santiment notes that active addresses – a common proxy for unique participants transacting on the blockchain – have not kept pace with the asset’s elevated valuation. This divergence is attributed partly to the growing role of spot Bitcoin ETFs and institutional investment vehicles, which allow exposure without directly moving coins on-chain or opening new wallets. Long-term holders are also more passive, opting to store rather than transact frequently.
Prominent analysts have weighed in on the price outlook. Trader Ansem warned that failure to reclaim the $73,000 level could send Bitcoin toward $65,000 and eventually $60,000. Veteran critic Peter Schiff highlighted Bitcoin’s underperformance relative to the Nasdaq, which remains near record highs. However, Santiment adds that a drop in on-chain activity is not necessarily a bearish signal; historically, either upward or downward volatility tends to reawaken network usage. The current lull may simply reflect the protracted sideways price action and growing investor interest in equities and precious metals.
At the time of writing, Bitcoin was trading at $69,876, with a 5% gain in the last 24 hours and a 134% surge in trading volume, indicating that traders remain attentive despite the shaky network fundamentals.
