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Bitcoin network activity seems to be flashing a warning for the largest cryptocurrency by market cap.
According to Santiment, since February 2021, the five-year difference in Bitcoin’s level of network activity remains significant; there are now 42% fewer unique BTC addresses making transactions and 47% fewer new BTC addresses created.
While this might seem concerning, Santiment clarifies that this does not mean that “crypto is dead” or that the market is entering a multiyear bear phase. Santiment indicated a clear bearish divergence that had been forming throughout 2025 as the Bitcoin price rallied, with its market cap increasing while utility declined.
While the Bitcoin price currently trades in green, up 0.02% in the last 24 hours to $66,906, Santiment noted that a justification for a true long-term relief rally might arise when metrics such as active addresses and network growth begin to rise. Santiment noted that although altcoins might be somewhat dependent on BTC in this regard, they could also see price rallies once their network activity rises.
The price of Bitcoin has come under sustained pressure since it started dropping from a record high of $126,000 in October. It has been in an extended four-week slide since the start of 2026 that took it to near $67,000 amid broader market volatility as investors worry over the impact of AI on the economy.
Flows remain a headwind for Bitcoin, with $360 million withdrawn from U.S.-listed exchange-traded funds last week, a fourth straight week of net outflows.
In positive news, long-time crypto skeptic Goldman Sachs Group Chief Executive Officer David Solomon now owns Bitcoin.
The Wall Street executive holds “very, very limited” amounts of Bitcoin, he mentioned to an audience at the World Liberty Forum at Mar-a-Lago in Florida, on Wednesday.
Solomon added that he was not a “great Bitcoin prognosticator” and was merely an observer of the asset. Bitcoin is down 47.22% from an ATH of $126,198 reached last October, with short term indicators now signaling it might be entering the accumulation zone.
