JPMorgan Beware, Retail Investors Cause Crypto Market Sell Off!


"Hmm, if it goes down again, it's okay, can the investor buy again, right?"

JPMorgan, the United States (US) multinational financial services firm maintains a cautious stance on the cryptocurrency market in the near term due to the lack of positive catalysts while the retail drive is weakening.

In addition to seeing outflows in spot BTC ETFs, JPMorgan also revealed that retail investors sold crypto and equities in April 2024, which caused the price of Bitcoin (BTC) to plummet to $56,596.

In recent weeks, the crypto market has seen quite significant profit-taking as retail investors played a larger role in the sell-off than institutional investors.

By observation, investors sold US-based spot BTC ETFs at the fastest pace on Wednesday yesterday as 11 ETFs saw cumulative net outflows of $563.7 million, the largest since the fund began trading on January 11, 2024.

As for institutional investors, most are momentum traders such as commodity trading advisors (CTAs) or other quantitative funds that take profits on previous extreme long positions in BTC and gold.

Despite this, futures market analysts suggest a more limited reduction of positions by other institutional investors outside of quantitative funds and CTA.

As of this writing, BTC price has surged by 3.69% to $59,303 in the past 24 hours with a market cap of over $1 trillion but is still down 8.06% over the past week.