JPMorgan: Recent market correction may be driven by native crypto investors

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

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