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First, Bitcoin began the ultimate month of 2025 with clear bearish momentum, with the worth structure taking a transparent bearish direction. However, this bearish momentum soon faded after the flagship cryptocurrency hit the $85,000 support. Since then, Bitcoin has largely been in a consolidation range and has struggled to convincingly break out of either end of the chart. Interestingly, an on-chain evaluation was published that examines the dynamics which will have influenced BTC's performance in December.
Binance inflows recorded a rapid monthly decline from $24.7 billion to $16.54 billion
In a QuickTake post on CryptoQuant, market expert CryptoOnchain shares insights on evaluating inflows into Binance on behalf of Bitcoin. The indicator included on this evaluation is the Binance Monthly Inflow By UTXO Age metric, which determines how much Bitcoin (in USD or BTC) flows into Binance every month, broken down by the age of deposited UTXOs (Unspent Transaction Outputs).
CryptoOnchain emphasizes that this drop in inflows was influenced by young UTXOs (transactions lower than a day old). From its November peak of around $24.7 billion, the metric quickly fell to $16.54 billion in December, representing an inflow gap of $8.16 billion. Typically, young UTXOs are a method by which to trace short-term speculative behavior as they’re representative of recently transferred coins. Therefore, the numerous decline in Binance inflows suggests that short-term holders are increasingly reluctant to sell their coins.
Source: CryptoQuant
It is noteworthy that increased inflows from this investor group indicate an increasing propensity to sell. This creates increased downward pressure on Bitcoin price, resulting in short-term price corrections. The decline in inflows in December is due to this fact a reversal. It shows a “cooling off in speculative activity,” which in turn is reflected within the charts in a major lack of selling pressure.
The crypto expert also points out possible reasons for this exodus of speculative activity. Structurally, the analyst suspects that the drop in inflows might be because of the weakening price dynamics that characterize the last days of the yr. Short-term investors could have exited the market out of caution to see what the brand new yr brings without entering into the combo.
This motion then ends in a “handover of supply control” to Bitcoin’s medium and long-term investors. Historically, such transitions have been related to periods of consolidation and lower volatility, where no significant degree of directional momentum has been evident. So if history is anything to go by, Bitcoin price might be preparing for sustained cycles in the approaching months.
Bitcoin price overview
At press time, Bitcoin is value about $89,533, with data from CoinMarketCap showing every day growth of 0.85%.
BTC is trading at $89,533 on the every day chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Pexels, chart from Tradingview
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