Bitcoin Holds Below $90K as Network Activity and Exchange Flows Hit Lows

Bitcoin trades near $88K as active addresses and Binance flows hit yearly lows; ETF outflows persist.

Bitcoin traded below $90,000 on December 25 as key participation metrics weakened across the market. On-chain data showed a sharp cooling in Bitcoin network activity. Exchange flow data also pointed to reduced positioning. 

Meanwhile, U.S. spot Bitcoin ETFs extended a multi-day run of net outflows. A brief flash move on one Binance pair added a liquidity warning during thin holiday trading.

Active addresses fall to the yearly low as BTC stays below $90K

Recent CryptoQuant data showed the 30-day simple moving average of active addresses near 807,000. That level marked the lowest reading in the past year. The decline suggested fewer retail users and short-term traders interacted with the Bitcoin network.

Additionally, analysts tracked a widening gap between Bitcoin’s price and day-to-day on-chain use. Traders often move fewer coins when they expect range conditions. Consequently, price can stall even when support holds, because fewer transactions support fresh price discovery.

Past cycles often showed volatility returning after long periods of muted on-chain activity. Traders track whether active addresses rebound or slide further as Bitcoin tests support near $88,000.

Binance inflows and outflows hit lows as traders stay sidelined

CryptoQuant data also showed Binance deposits and withdrawals at annual lows. Low deposits can limit immediate sell pressure because fewer coins reach exchange order books. However, quiet inflows can also signal lower urgency from traders during risk-off sessions.

Moreover, weak withdrawals can point to fading accumulation through exchanges. Investors did not shift large balances into cold storage at current prices. Hence, both sides appeared cautious, and market depth can thin faster than usual when liquidity providers step back. Deposits rise when holders prepare to sell. Withdrawals rise during accumulation phases.

ETF outflows persist as BTC/USD1 flash drop flags thin liquidity

Farside Investors data showed U.S. spot Bitcoin ETFs recorded about $175.3 million in net outflows on December 24. That result kept five consecutive sessions negative, totaling about $825.7 million. Market participants linked the selling to tax positioning and hedging ahead of quarterly options expiry.

Besides ETF pressure, Binance saw an isolated wick on the BTC/USD1 pair. Bitcoin briefly traded near $24,111 on that pair before rebounding above $87,000 within seconds. Reports linked the move to low liquidity on BTC/USD1, not broad weakness across major Bitcoin pairs.

USD1 is a recently launched stablecoin linked to World Liberty Financial. Thin order books can increase slippage when large trades occur. The episode underscored execution risks on low-liquidity pairs, particularly during off-peak trading hours.