Traders Foresee Dull Bitcoin Returns Coming Into the New Year as BTC ETFs Face $420 Million Drop

Highlights:

Bearish trends in the Bitcoin (BTC) market continued on Monday as BTC briefly dipped below $92,000 due to profit-taking.
Current predictions suggest December might close with a 4% decline, marking its lowest performance since 2021, following a 117% increase this year.
The CoinDesk 20 (CD20) index, tracking leading cryptocurrencies by market capitalization excluding stablecoins, fell by 2.7% in the last 24 hours.

Market Overview:

Bearish trading in the Bitcoin market has persisted, causing BTC to briefly fall under $92,000, although it rebounded to around $92,800 by Tuesday morning in Asia.

Traders anticipate further action likely until February, when President-elect Donald Trump will enact a range of policies potentially impacting the market. A trader from Singapore's QCP Capital shared in a Telegram post:

"We are skeptical of any New Year fireworks especially with funding healthy. January's average returns (+3.3%) are relatively similar to December's (+4.8%)."

They predict Bitcoin prices may remain within the current range until February when optimistic trends might emerge.

The exchange-traded funds (ETFs) associated with Bitcoin suffered $420 million in outflows as the year-end approached, with Fidelity’s FBTC leading the losses at $154 million. This trend has raised concerns about the investors' sentiment shifting towards a more cautious stance on Bitcoin's short-term outlook.

Conclusion:

MicroStrategy made its final Bitcoin purchase of the year, adding 2,138 BTC for $209 million, raising its total holdings to 446,400 BTC. However, this purchase did not prevent Bitcoin prices from falling or the drop in MicroStrategy's stock value, which decreased by 8% following the announcement.