The CoinDesk 20 (CD20), an index tracking the largest cryptocurrencies by market capitalization, excluding stablecoins, dropped by 2.7% over the past 24 hours.

Bearish pressure continued to affect the bitcoin (BTC) market on Monday, with the price briefly dipping below $92,000 due to profit-taking, despite MicroStrategy’s latest large Bitcoin acquisition. However, by Tuesday morning in Asia, BTC had recovered slightly to around $92,800.

Some traders predict that the current price action will likely persist until February, following the inauguration of President-elect Donald Trump, who is expected to enact policies that could influence the crypto market.

“We’re skeptical about any fireworks in the market at the start of the year, particularly with funding conditions remaining strong,” traders from Singapore-based QCP Capital stated in a Telegram update. “Historically, January’s average returns (+3.3%) are similar to December’s (+4.8%), and we expect Bitcoin to remain in its current range for the near term before things pick up around February.”

Options market activity reflects this cautious sentiment, with implied volatility on the decline and demand for March call options increasing. These options, which profit from rising prices, saw increased buying activity, especially in the $120k-$130k range. This suggests that traders are positioning themselves for potential upward movement in March, although options pricing indicates lower volatility in the immediate future.

Bitcoin is set to close December with a 4% loss, marking its worst performance since 2021. The decline comes after a remarkable 117% price increase over the course of the year, as both retail and long-term investors cash out. In addition, economic data from the U.S. Chicago PMI, which indicates an economic slowdown, is adding to the pressure on the market, which has historically correlated with macroeconomic trends.

In its final Bitcoin purchase of 2024, MicroStrategy increased its BTC holdings by 2,138 BTC, spending $209 million in the week ending Dec. 29. This brings the company’s total Bitcoin stash to 446,400 BTC, marking its eighth consecutive week of purchasing Bitcoin.

Despite the purchase, the news did little to halt the selling momentum. Bitcoin prices continued to slide after the announcement, and shares of MicroStrategy fell 8%, reaching their lowest level since early November.

The downturn also affected other major cryptocurrencies, with Ether (ETH), XRP, Solana (SOL), and Cardano (ADA) dropping by up to 3% before recovering. BNB Chain’s BNB remained mostly stable, while memecoins Dogecoin (DOGE) and Shiba Inu (SHIB) saw declines of around 5%.

The CoinDesk 20 index ended the day down by 2.7%, reflecting the overall weakness in the market.

Bitcoin exchange-traded funds (ETFs) experienced substantial outflows, with a total of $420 million in redemptions on the second-to-last day of trading before the new year. Fidelity’s FBTC led the way with $154 million in outflows, followed by Grayscale’s GBTC at $130 million and BlackRock’s IBIT at $36 million.

These products have faced over $1.5 billion in net outflows since Dec. 19, reversing a positive trend earlier in the month when nearly $2 billion flowed in. Large outflows often indicate a shift in investor sentiment, signaling caution or a more bearish outlook on Bitcoin’s short-term prospects.