Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) prices remained largely stagnant in December, even as derivatives activity and leverage quietly increased.
What Happened: Data from on-chain data provider CryptoQuant shows that instead of capitulating amid falling volumes and elevated fear, traders added leverage.
Combined Bitcoin and Ethereum futures open interest rose about 7%, or roughly $2 billion to $3 billion, during December, even as BTC hovered near $88,000 and the Fear & Greed Index fell to 27.
Over the past week alone, an additional $450 million in leverage entered the market, signaling that traders are positioning for a rebound rather than reducing risk.
Funding rates stayed positive, leverage was not flushed out, and major exchanges showed continued accumulation — conditions that typically do not align with a definitive market bottom.
At the same time, whale behaviour diverged.
Larger holders reduced exposure, suggesting professional money stepped back while retail traders increased leverage.
This points to conviction without confirmation and a market that has yet to reach full capitulation.
Also Read: Bitcoin Rejected At $90,000 As Ethereum, XRP, Dogecoin Tread Water
Why It Matters: CryptoQuant also highlighted a sharp decline in Bitcoin whale inflows to Binance, which fell about 50% in December, from roughly $7.88 billion to $3.86 billion.
This slowdown suggests reduced near-term selling pressure, a constructive signal for short-term price stability.
However, sporadic large inflows persist. Notable spikes included $466 million from wallets holding 100–10,000 BTC and more than $435 million from the 1,000–10,000 BTC cohort, underscoring that whales still have the ability to drive sudden volatility.
Overall, while selling pressure from large holders has eased, leverage remains elevated and sentiment fragile, leaving the market vulnerable to sharp moves in either direction.
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