- continues the decline in institutional demand for Bitcoin:

The decline in institutional demand continued this week. SoSoValue data indicates that Bitcoin spot ETF funds recorded outflows of $175.29 million on Wednesday, marking the fifth consecutive day of withdrawals since December 18. If these outflows persist and worsen, Bitcoin's price could see further correction.

Daily chart of net spot Bitcoin flows into ETFs. Source: SoSoValue

- The calm before the storm:
Deribit data shows that Bitcoin options contracts worth $23.47 billion will expire on Friday. Bitcoin derivatives traders are heavily focused on high strike prices, with open interest in call options significantly exceeding that of put options, as evidenced by the put-to-call ratio dropping to 0.35, indicating a generally bullish sentiment.

Additionally, the maximum pain price of $95,000 suggests that option sellers will benefit more if Bitcoin's price gravitates toward this level by the expiration date, as most contracts will expire worthless at this level.

QCP Capital's report this week highlighted that despite a decrease in leveraged positions, market depth contraction means that risk of pressure in both directions remains high.

QCP analyst said: "Historically, Bitcoin tends to experience volatility of 5 to 7% during the Christmas period, a pattern often associated with year-end options expiration rather than new fundamental catalysts."