Bitcoin’s Vanishing Users: A $100K Reality Check for BTC in 2025

Bitcoin's price flirts with six figures—but where did all the users go?

The ghost town behind the gold rush

Network activity flatlines as speculators chase the next shiny thing. Daily active addresses sink to 2021 levels while BTC's market cap soars past $2T. Classic crypto: price divorces utility, again.

Miners vs. hodlers: the silent standoff

Hash rate keeps climbing, but new wallets gather dust. Retail's out—institutions are playing musical chairs with ETF inflows. Guess who gets left holding the bag when the music stops?

The $100K paradox

Every analyst's prediction hits Bloomberg terminals as adoption metrics miss the memo. Wall Street's latest 'digital gold' narrative works great… until someone asks about actual usage.

Wake-up call: Price isn't adoption. Just ask the 90% of 2017 buyers who panic-sold before $20K.

Source: CryptoQuant

Why are BTC users vanishing?

Having said that, things weren’t rosy across the board.

Bitcoin’s on-chain activity shriveled. Transaction Count fell to 50.3K, while Network Growth slumped to 57.6K—both multi-month lows.

This contraction pointed to waning participation, likely due to cautious retail sentiment or sidelined users amid elevated prices.

When fewer new users join and fewer transactions occur, it typically reflects retail caution or fatigue at high prices.

In fact, such dual declines often precede local slowdowns—unless reversed quickly. The rally needs more than just strong hands; it needs new ones joining in.

Source: Santiment

Is Bitcoin’s scarcity narrative getting overhyped?

Meanwhile, Bitcoin’s Stock-to-Flow Ratio exploded to 458, well above recent averages.

This metric reflects the relationship between current supply and annual production, and a spike suggests intensifying scarcity narratives. 

This may encourage long-term holders, but here’s the rub — When perceived scarcity rises while actual network use declines, the gap between story and reality widens.

Source: Santiment

Could Bitcoin’s valuation be outpacing its utility?

Another warning bell came from the NVT Ratio with Circulation, which spiked to 1,527—its highest in over a year.

This metric evaluates whether Bitcoin’s market cap is supported by transactional activity. A soaring NVT usually signals that valuation is outstripping usage, especially when network activity is weak. 

Combined with declining transaction volume and user growth, this surge may suggest Bitcoin is overvalued in its current state.

Although investors may still expect further gains, historically elevated NVT levels often precede local tops. 

Source: Santiment

Are BTC outflows masking brewing volatility?

Despite all the mixed signals, BTC holders weren’t rushing to sell.

The 7th of July saw a $30.14 million net exchange outflow, continuing a long-standing trend of coins moving off exchanges. 

This behavior implies strong investor conviction, with holders opting for custody rather than immediate selling.

However, this conviction now faces a test, as conflicting signals between accumulation and weakening network strength emerge. 

Source: CoinGlass

Conclusively, while Bitcoin’s outflows and declining Funding Rates suggest bullish undercurrents, faltering on-chain activity and valuation excesses raise red flags. 

The short squeeze potential remains real, but without renewed transaction growth or network expansion, upside momentum may weaken. 

Therefore, despite current optimism, traders must remain cautious as on-chain fragility could quickly shift sentiment if price support fails.