Crypto Market Sell-Off Was Driven by Retail Investors, JPMorgan Says

Wall Street giant JPMorgan said it's keeping its cautious stance on cryptocurrency markets in the near term due to a lack of positive catalysts and because the retail impulse is disappearing.

The bank notes that retail investors sold both crypto and equity assets in April and spot bitcoin exchange-traded funds have seen outflows. Thethe bank has already identified – elevated positioning, high bitcoin prices versus gold and versus the estimated bitcoin production cost, and subdued crypto venture capital funding – are also still in place.

Cryptocurrency markets have seen significant profit taking in recent weeks, with retail investors playing a bigger part in the sell-off than institutional investors, the report said. Bitcoin fell 16% in April, the biggest monthly decline since June 2022.on Wednesday. The 11 ETFs saw a cumulative net outflow of $563.7 million, the largest since the funds started trading on Jan. 11.

With regards to institutional investors, “it has been mostly momentum traders such as commodity trading advisors or other quantitative funds taking profit on previous extreme long positions in both bitcoin and gold,” analysts led by Nikolaos Panigirtzoglou wrote. Still, analysis of the futures market suggests a “more limited position reduction by other institutional investors outside quantitative funds and CTAs,” the authors wrote.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Crypto market stumbles amid arrest of Samourai Wallet foundersDespite favorable market sentiment, the crypto market briefly fell amid the arrest of Samourai Wallet founders.
Source: Cointelegraph - 🏆 562. / 51 Read more »

Stock market sell-off has 'further to go,' JPMorgan warnsJPMorgan analysts warned in a note to clients this week that the U.S. stock market sell-off has 'further to go' amid a number of macroeconomic headwinds.
Source: FoxBusiness - 🏆 458. / 53 Read more »

Breaking down the market sell-off and odds this 5% pullback turns into a 10% correctionMike Santoli dissects the latest downturn in the market and whether a bounce is coming.
Source: CNBC - 🏆 12. / 72 Read more »

Ancient Ethereum Whale's 5,000 ETH Sell-off stirs marketEthereum whale still has 76,638 ETH remaining
Source: Utoday_en - 🏆 295. / 63 Read more »