Bitcoin Tops $80,000 Even as On-Chain Activity Falls to Two-Year Low, Prompting Weak-Rally Warning

Bitcoin has climbed above $80,000, but on-chain activity has fallen to its lowest level in two years, underscoring a growing disconnect between the token’s price gains and network usage.

Data from on-chain analytics platform Santiment on May 4 showed Bitcoin’s daily active wallets recently fell to about 531,000, while newly created wallets dropped to about 203,000. Both were the lowest in two years.

Price rallies typically coincide with an influx of new users and stronger network activity. This advance, however, appears to be driven by a relatively limited group of participants.

Santiment wrote that on-chain participation has not increased despite Bitcoin’s roughly 22% gain over the past five weeks. That suggests a small group of investors may be pushing prices higher, leaving the rally on a fragile footing.

If those major participants start taking profits, there may be too little new demand to absorb the selling, potentially amplifying price volatility.

Santiment added that weak on-chain activity could still be a positive medium- to long-term signal. In past cycles, slowing network activity often marked a bottom in investor sentiment and was followed by strong gains as fresh capital entered the market.