Bitcoin's network activity has fallen to its weakest level in more than seven years as selling pressure and lower on-chain activity weigh on market confidence. According to Bitcoin Magazine, Bitcoin active addresses dropped near 2019 bear market levels, with the 60-day moving average of active Bitcoin addresses standing slightly above 600,000 on June 4, placing Bitcoin's address activity near levels last seen during the 2019 bear market. The decline in network activity has continued since the end of the 2021 bull market, with Bitcoin active addresses returning to 2019 levels as investors increasingly use regulated investment products and alternative layer-one networks for transactional demand.
Bitcoin has experienced another 5.5% decline in early trading, falling to a 4-month low of $61,500 before clawing back above $64,000 by afternoon and currently sitting at $63,950. According to AMBCrypto data, $1.76 billion in leveraged crypto liquidations occurred over the past 24 hours, with Bitcoin accounted for $810.64 million among this figure, with $734.07 being long liquidations. The move below $67,000 represents a significant escalation from previous lows, with the break of this psychological level signaling a shift in short-term momentum. Bitcoin has now fallen more than 20% over the past month and 21% over the past four weeks, reaching its lowest level since October 2024. Tuesday, June 2nd saw the largest liquidation numbers since the market crash on February 5th, when $1.844 billion in long positions alone were liquidated across the market.
The recent decline began after Strategy, the firm founded by Michael Saylor, revealed it had sold a small portion of its Bitcoin holdings. Although the sale was limited, it shook investor confidence as the company had long been seen as a committed long-term holder. The move triggered large-scale liquidations worth hundreds of millions of dollars, pushing prices further down according to CNBC. On Friday, Bitcoin fell as much as 7% to about $59,100 during US trading hours, before recovering slightly. The selling pressure from institutional holders has compounded the broader market weakness, contributing to the cryptocurrency's overall decline of more than 50% from its October 2025 peak near $126,000.
Spot Bitcoin exchange-traded funds have fundamentally changed how investors gain exposure to BTC, with some investors moving toward ETF shares instead of direct on-chain transactions after products received approval. According to Bitcoin Magazine, these regulated products offered regulated access and deeper trading liquidity, reducing the need for some investors to move Bitcoin across the network. At the same time, Bitcoin has faced stronger competition from other layer-one networks, with Ethereum, Solana, and Tron continuing to host stablecoin payments and frequent settlement activity while Bitcoin remains mostly used as a store-of-value asset. The Genius Act, a U.S. law signed in July 2025, has also contributed to this trend by creating federal rules for stablecoin issuers, leading to institutional stablecoin activity expanding across chains built for faster and cheaper payments.
Market conditions have worsened after stronger-than-expected US jobs data lifted Treasury yields, with higher yields often reducing appetite for riskier assets like cryptocurrencies. Investor attention has shifted to other markets, with money moving into booming sectors such as artificial intelligence stocks and semiconductor companies, especially in Asia. Upcoming major stock market listings are also expected to attract retail investors, drawing funds away from crypto assets. Uncertainty around regulation has added to the cautious mood, with a key US crypto bill, known as the Clarity Act, appearing to be losing momentum as lawmakers remain divided. Meanwhile, global geopolitical tensions have failed to support Bitcoin, raising doubts about its reputation as a 'digital gold' safe haven. Despite global equity markets reaching new highs, Bitcoin has not followed the same trend, with its recent movements showing weaker links with major indices like the Nasdaq.
