Bitcoin has staged a dramatic rebound, recovering from a steep drop below $75,000 to hit a new all-time high of $112,000.
Traders are celebrating the bullish price action, but beneath the surface, something doesn’t add up. While the charts show strength, the blockchain itself appears oddly subdued. Activity metrics that typically follow big moves are lagging — and that could be a sign of deeper issues in the market.
One of the clearest signs of this disconnect is the low number of active addresses. These represent wallets that send or receive BTC and are often viewed as a pulse check for the network. During Bitcoin’s recent drop, activity on this front also dipped — which is normal. But even after the strong price recovery, address activity has failed to bounce back. It’s a puzzling divergence: price is climbing, yet fewer people seem to be using the network.
This pattern is reinforced by the broader Network Activity Index, which blends several indicators like transaction count, block size, and unspent outputs. The index also reflects a lull in engagement.
If Bitcoin’s rise was truly organic and supported by widespread use, these metrics would typically rise in tandem. Instead, they remain flat, suggesting that the recent rally may be driven more by speculation and institutional flows than by genuine retail participation.
Another clue is found in the mempool — the queue where unconfirmed transactions wait to be added to the blockchain. At the moment, it’s unusually empty. While upgrades like SegWit and transaction batching can reduce congestion, they don’t explain everything. With so few pending transactions and low address activity, it seems more likely that overall demand for blockchain space has simply fallen. In other words, users just aren’t moving their Bitcoin.
All of this points to a key takeaway: retail interest in Bitcoin appears to be waning, even as price climbs. This isn’t unprecedented. Previous bull cycles have sometimes seen institutions drive rallies while everyday users remained hesitant — often burned by volatility or distracted by other market narratives. But the risk is that if network usage continues to stagnate, the rally could lose its foundation.
Looking ahead, macroeconomic conditions may be the wildcard. With rate cuts potentially on the horizon and global liquidity poised to expand, the stage is set for risk appetite to return. That could bring a fresh wave of retail investors back into the crypto fold. But until that happens, the blockchain’s silence raises questions about how sustainable this rally truly is.
The current situation reveals a market at a crossroads — bullish in price, but uncertain in participation. If Bitcoin is to hold its momentum, it will need more than just a chart breakout. It will need people to come back and actually use it.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoins-price-climbs-but-the-network-feels-abandoned/