Initially, Bitcoin started the last month of 2025 with significant bearish momentum, and the price structure also took on a clearly bearish direction. However, this downward momentum quickly weakened as the flagship cryptocurrency reached support at $85,000. Since then, Bitcoin has traded within a near-consolidation range, struggling to break out of either end of the chart in a convincing manner. Interestingly, an on-chain analysis was released that explores the dynamics that may have influenced BTC’s December performance.
Monthly inflows to Binance plummet from $24.7 billion to $16.54 billion
In a QuickTake post on CryptoQuant, market expert CryptoOnchain shares his findings regarding the valuation of inflows to Binance in the name of Bitcoin. The metric included in this analysis is the Binance Monthly Inflow metric by UTXO age. This determines the amount of Bitcoin (in USD or BTC equivalent) flowing into Binance each month, broken down by age of UTXOs (unspent transaction outputs) being deposited.
CryptoOnchain highlights that this slump in capital inflows is influenced by young UTXOs (transactions occurring less than a day ago). From a high of about $24.7 billion in November, it declined rapidly to $16.54 billion in December, creating an inflow gap of $8.16 billion. Young UTXOs are typically representative of recently transferred coins, and thus provide a means by which short-term speculative activity can be tracked. Therefore, the significant decrease in inflows to Binance indicates that short-term holders are more willing to sell their coins.
It is worth noting that increasing inflows from this group of investors indicate a growing selling trend. This will lead to increased bearish pressure on Bitcoin price, leading to a short-term price correction. Therefore, the decline in inflows in December is reversed. This reveals a “cooling down in speculative activity,” which is reflected on the chart as a significant drop in selling pressure.
Cryptocurrency experts further highlight possible reasons for this outflow of speculative activity. Structurally, analysts speculate that the decline in inflows is due to the weakening of price momentum that characterizes the end of the year. Short-term holders may have exited the market out of caution to see what the new year brings without getting caught up in the turmoil.
This measure will result in a “handover of supply management” to Bitcoin medium- to long-term investors. Historically, such transitions have been associated with periods of declining price and volatility without significant directional momentum. Therefore, if history is any guide, Bitcoin prices could be poised for a sustainable cycle in the coming months.
Bitcoin price overview
At the time of writing, Bitcoin is valued at approximately $89,533, with data from CoinMarketCap showing daily growth of 0.85%.
Featured images from Pexels, charts from Tradingview
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