Bitcoin, the world's most widely recognized cryptocurrency, has been experiencing a quiet decline in user numbers over the past year. According to data from Glassnode, the number of active addresses on the Bitcoin network has fallen by roughly 31% since mid-August 2025. This decline is not immediately apparent in the headline metric of transaction volume, which has remained stable. However, a closer look at the data reveals a narrowing of Bitcoin's on-chain footprint, even as market exposure remains active through exchange-traded funds (ETFs) and derivatives.
This trend has become increasingly hard to ignore as the bear market has dragged on. CryptoQuant has also flagged low network activity for six consecutive months, describing the current stretch as an extended period of stagnation. Meanwhile, Bitcoin's price has experienced significant volatility, briefly falling to $64,400 on Sunday before rebounding above $66,000.
Despite the decline in user numbers, Bitcoin's exchange balances have been on the rise. Data from CryptoQuant shows that Bitcoin holdings in wallets linked to Binance have climbed to about 676,835 BTC, a level last seen in November 2024. This represents a 9.3% rise from a recent low. However, rising balances on the exchange are said to have bearish implications.
The complex picture of Bitcoin's market health is further complicated by the performance of ETFs. In 2026, Bitcoin ETFs have bled $4.5 billion, highlighting the challenges faced by these investment vehicles. The decline in user numbers and ETF outflows suggests that investors may be losing confidence in Bitcoin, at least in the short term.
Regulatory developments have also had an impact on the cryptocurrency market. In Austria, KuCoin EU has been prohibited from conducting new business and onboarding customers due to compliance staffing shortfalls. The regulator granted KuCoin approval under the Markets in Crypto Assets regime in November but has since deemed the exchange's staffing inadequate.
In contrast, the Bank of Korea has renewed its call for bank-led won stablecoins, citing the US GENIUS Act as a model. The proposal includes the establishment of a bank-led consortium and a statutory interagency body for issuer approvals. This development highlights the ongoing efforts of regulators to shape the cryptocurrency market and ensure compliance with existing laws.
The decline in Bitcoin's user numbers and ETF outflows has significant implications for the market. As the bear market continues, investors will be watching closely to see how Bitcoin's on-chain footprint and exchange balances evolve. While the current trend is bearish, it remains to be seen whether Bitcoin will regain its footing and attract new users. For now, the cryptocurrency's quiet decline serves as a reminder of the market's ongoing volatility and the need for investors to remain vigilant.
Sources:
- Glassnode data shows Bitcoin active addresses at about 778,680 on an eight-day average in mid-August 2025.
- CryptoQuant has flagged low network activity for six consecutive months.
- Bitcoin holdings in wallets linked to Binance have climbed to about 676,835 BTC, a level last seen in November 2024.
- Bitcoin ETFs have bled $4.5 billion in 2026.
- KuCoin EU has been prohibited from conducting new business and onboarding customers due to compliance staffing shortfalls.
- The Bank of Korea has renewed its call for bank-led won stablecoins, citing the US GENIUS Act as a model.
Bitcoin, the world's most widely recognized cryptocurrency, has been experiencing a quiet decline in user numbers over the past year. According to data from Glassnode, the number of active addresses on the Bitcoin network has fallen by roughly 31% since mid-August 2025. This decline is not immediately apparent in the headline metric of transaction volume, which has remained stable. However, a closer look at the data reveals a narrowing of Bitcoin's on-chain footprint, even as market exposure remains active through exchange-traded funds (ETFs) and derivatives.
This trend has become increasingly hard to ignore as the bear market has dragged on. CryptoQuant has also flagged low network activity for six consecutive months, describing the current stretch as an extended period of stagnation. Meanwhile, Bitcoin's price has experienced significant volatility, briefly falling to $64,400 on Sunday before rebounding above $66,000.
Despite the decline in user numbers, Bitcoin's exchange balances have been on the rise. Data from CryptoQuant shows that Bitcoin holdings in wallets linked to Binance have climbed to about 676,835 BTC, a level last seen in November 2024. This represents a 9.3% rise from a recent low. However, rising balances on the exchange are said to have bearish implications.
The complex picture of Bitcoin's market health is further complicated by the performance of ETFs. In 2026, Bitcoin ETFs have bled $4.5 billion, highlighting the challenges faced by these investment vehicles. The decline in user numbers and ETF outflows suggests that investors may be losing confidence in Bitcoin, at least in the short term.
Regulatory developments have also had an impact on the cryptocurrency market. In Austria, KuCoin EU has been prohibited from conducting new business and onboarding customers due to compliance staffing shortfalls. The regulator granted KuCoin approval under the Markets in Crypto Assets regime in November but has since deemed the exchange's staffing inadequate.
In contrast, the Bank of Korea has renewed its call for bank-led won stablecoins, citing the US GENIUS Act as a model. The proposal includes the establishment of a bank-led consortium and a statutory interagency body for issuer approvals. This development highlights the ongoing efforts of regulators to shape the cryptocurrency market and ensure compliance with existing laws.
The decline in Bitcoin's user numbers and ETF outflows has significant implications for the market. As the bear market continues, investors will be watching closely to see how Bitcoin's on-chain footprint and exchange balances evolve. While the current trend is bearish, it remains to be seen whether Bitcoin will regain its footing and attract new users. For now, the cryptocurrency's quiet decline serves as a reminder of the market's ongoing volatility and the need for investors to remain vigilant.
Sources:
- Glassnode data shows Bitcoin active addresses at about 778,680 on an eight-day average in mid-August 2025.
- CryptoQuant has flagged low network activity for six consecutive months.
- Bitcoin holdings in wallets linked to Binance have climbed to about 676,835 BTC, a level last seen in November 2024.
- Bitcoin ETFs have bled $4.5 billion in 2026.
- KuCoin EU has been prohibited from conducting new business and onboarding customers due to compliance staffing shortfalls.
- The Bank of Korea has renewed its call for bank-led won stablecoins, citing the US GENIUS Act as a model.