CryptoOnchain analyzed inflows into Binance attributed to Bitcoin using CryptoQuant’s QuickTake. The indicator is the Binance Monthly Inflow By UTXO Age metric, which determines how much Bitcoin flows into Binance each month, broken down by the age of the UTXOs being deposited. CryptoOnchain highlights that this downturn in money inflows was influenced by very young UTXOs (transactions less than a day old).
From its November high of approximately $24.7 billion, the metric quickly dropped to $16.54 billion in December, marking an $8.16 billion inflow gap. Typically, young UTXOs are a means through which short-term speculative behavior can be tracked, seeing as they are representative of recently transferred coins. Hence, the significant drop in Binance inflow indicates a growing unwillingness among short-term holders to sell their coins.
This inflow decline in December is therefore an inversion and reveals a cooling of speculative activity, translating to a reduction in selling pressure. Analysts propose that fading price momentum late in the year and caution ahead of the new year contributed to the exodus, potentially handing over supply control to mid- and long-term investors. Historically, such shifts have been associated with consolidation and lower volatility, implying Bitcoin could enter a more sustainable cycle in the coming months.
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