Initially, Bitcoin started the last month of 2025 with significant bearish momentum, with its price structure taking a clear bearish direction. However, this downward momentum soon weakened after the flagship cryptocurrency hit support at $85,000. Since then, Bitcoin has mostly traded within a consolidation range and struggled to break clearly outside either end of the chart. Interestingly, an on-chain analysis has been published that examines the dynamics that could impact BTC’s December performance.
Binance inflows show a sharp monthly decline from $24.7 billion to $16.54 billion.
In a post on CryptoQuant’s QuickTake, market expert CryptoOnchain shares the results of his assessment of inflows to Binance in the name of Bitcoin. The metric included in this analysis is the Binance Monthly Inflow by UTXO Age indicator, which determines the amount of Bitcoin (in USD or BTC terms) flowing into Binance each month, broken down by the age of deposited UTXOs (unspent transaction output).
CryptoOnchain highlights that this decrease in fund inflows is influenced by young UTXOs (transactions of less than 1 day). It quickly fell from a peak of about $24.7 billion in November to $16.54 billion in December, creating an inflow gap of $8.16 billion. In general, young UTXOs are a means of tracking short-term speculative activity as they represent recently transferred coins. Therefore, the significant decline in Binance inflows indicates a growing reluctance among short-term holders to sell their coins.
It is worth noting that increased inflows from this group of investors indicate a growing willingness to sell. This translates into bearish pressure on the Bitcoin price, leading to a short-term price correction. Therefore, the decline in inflows in December is a reversal. This shows a “cooling of speculative activity,” which ultimately translates into a significant loss of selling pressure on the charts.
Cryptocurrency experts further highlight the possible reasons for this exodus of speculative activity. Structurally, analysts speculate that the decline in inflows may be due to the weakening of price momentum that characterizes the end of the year. Short-term holders may have cautiously exited the market to observe what the new year will bring rather than get caught up in the chaos.
This move “hands control of supply” to medium- to long-term investors in Bitcoin. Historically, these transitions have been associated with consolidation phases and periods of low volatility, where no significant amount of directional momentum is seen. So, if history is anything to go by, Bitcoin price could be primed for a sustainable cycle in the coming months.
Bitcoin Price Overview
As of press time, Bitcoin is worth about $89,533, with CoinMarketCap data showing a daily growth rate of 0.85%.
Featured image from Pexels, chart from Tradingview
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