JPMorgan: Recent market pullback may be driven by native cryptocurrency investors

ChainCatcher news, according to The Block, JPMorgan analysts stated that last week's significant pullback in the crypto market, accompanied by large-scale liquidations, was driven by native cryptocurrency investors rather than institutional or retail ETF holders.

The report shows that the spot Bitcoin ETF, favored by traditional retail investors, showed "almost no signs of large-scale liquidations," with a net outflow of $220 million, accounting for only 0.14% of total assets under management; the Ethereum ETF had a net outflow of $370 million, accounting for 1.23%. Meanwhile, CME Bitcoin futures saw almost no liquidations, while CME Ethereum futures experienced significant deleveraging, possibly reflecting momentum traders "substantially reducing their risk exposure." In contrast, perpetual futures favored by native cryptocurrency traders underwent significant deleveraging, with the open interest in Bitcoin and Ethereum perpetual contracts dropping by about 40%, exceeding the price declines of these two assets. Analysts believe that native cryptocurrency investors were the main driving force behind last week's market pullback, while non-native cryptocurrency investors mostly remained on the sidelines.