Binance Bitcoin STH Activity Drops By $8 Billion In December – Here’s Why
Initially, Bitcoin started the last month of 2025 with significant bearish momentum, with the price structure taking a clear bearish direction. However, this momentum quickly weakened after the flagship cryptocurrency met its $85,000 support. Since then, Bitcoin has traded mostly within a composite range, struggling to break out of either part of the chart convincingly. Interestingly, an on-chain analysis was released that examines the potential impact on BTC performance in December.
Binance Entry Sees Fastest Monthly Drop From $24.7B To $16.54B
In a QuickTake post on CryptoQuant, market expert CryptoOnchain shares findings from analyzing penetration of Binance on behalf of Bitcoin. The indicator involved in this analysis is the Binance Monthly Inflow By UTXO Age metric, which determines how much Bitcoin (in USD or BTC terms) flows into Binance each month, divided by the age of UTXOs (Unspent Cash Out) deposited.
CryptoOnchain highlights that this drop in revenue was influenced by small UTXOs (transactions less than a day old). From its November high of $24.7 billion, the metric quickly dropped to $16.54 billion in December, marking an inflow gap of $8.16 billion. In general, small UTXOs are a way to track short-term speculative behavior, as they represent newly transferred coins. Therefore, the significant decline in the entry of Binance indicates a growing reluctance among short-term holders to sell their coins.
It is worth noting that high inflows from this group of investors point to a growing tendency to sell. This translates the price of Bitcoin as higher bearish pressure, leading to a short-term price correction. So the decline in income in December is a fluke. It indicates a “cooling of speculative activity,” which also translates on the charts as a significant loss of selling pressure.
The crypto pundit also highlights the possible reasons for this speculative activity. Structurally, the analyst speculates that the decline in revenue may be due to price erosion, which is characteristic of the last days 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 consolidation.
This action then creates a “handover of supply control” to medium- and long-term Bitcoin investors. Historically, such reversals have been associated with consolidation phases and periods of low volatility, when no significant amount of directional momentum is observed. So, if history is anything to go by, the price of Bitcoin may be preparing for sustained cycles in the coming months.
Bitcoin price overview
At press time, Bitcoin is valued at around $89,533, with CoinMarketCap data showing a daily growth of 0.85%.
Featured image from Pexels, chart from Tradingview
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