The Daily: Crypto selloff deepens, JPMorgan blames retail BTC and ETH ETF outflows, 24-hour liquidations top $2 billion, and more
Bitcoin plunged toward $80K following weak jobs data, while JPMorgan cited retail ETF selling as the cause of the crypto market correction.Summary
The cryptocurrency market experienced a significant sell-off, pushing Bitcoin near $80,500 after stronger-than-expected U.S. jobs data dampened hopes for an early interest rate cut. This macro pressure, combined with thin liquidity, amplified the drop, sending the Crypto Fear & Greed Index to extreme fear levels (11).
JPMorgan analysts suggest the correction is primarily driven by retail outflows from spot Bitcoin and Ethereum ETFs, noting that retail investors simultaneously poured money into equity ETFs, indicating a specific crypto retreat rather than a broad risk-off move. U.S. spot Bitcoin ETFs saw their second-largest daily outflows ever at $903 million, though cumulative inflows remain substantial. This market turmoil also resulted in over $2 billion in leveraged crypto liquidations within 24 hours, one of the largest waves this year.
Furthermore, corporate crypto treasury firms are suffering, with their combined market caps nearly halving since July. Despite the downturn, some analysts suggest capitulation may be nearing completion, with institutional cost bases acting as potential support zones.
(Source：The Block)