JPMorgan (JPM) Says Crypto-Native Investors Likely Driving the Market Slide

JPMorgan analysts, led by Nikolaos Panigirtzoglou, concluded that the recent crypto market sell-off was primarily driven by retail and crypto-focused investors rather than traditional institutions. This conclusion is based on data showing minimal forced selling in spot Bitcoin ETFs and CME BTC futures, with Bitcoin ETF outflows totaling only $220 million (0.14% of AUM) and Ether ETF outflows at $370 million (1.23%). Furthermore, CME futures showed minimal Bitcoin liquidations but heavier Ether selling, which the bank attributed to momentum-driven traders reducing risk. The steepest losses occurred in perpetual futures, where open interest fell significantly, indicating that the scale of unwinding points to crypto-native traders as the main driver, with Ether being hit harder than Bitcoin.

(Source：CoinDesk)