Report: The cryptocurrency market pullback appears to be driven by retail investors selling off Bitcoin and Ethereum ETFs.
TL;DR
The crypto market pullback is driven by retail investors selling $4B from Bitcoin and Ethereum ETFs in November, while they continue buying equity ETFs, suggesting a temporary shift rather than risk aversion.
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PANews reported on November 21st, citing a JPMorgan report cited by The Block, that the recent pullback in the crypto market was primarily driven by non-crypto-native retail investors. So far in November, approximately $4 billion has flowed out of Bitcoin and Ethereum spot ETFs, exceeding the February record. Meanwhile, retail investors continued to buy approximately $96 billion in equity ETFs this month, indicating that they have not generally avoided risky assets, only temporarily selling off crypto ETFs. JPMorgan believes that the correlation between crypto and small-cap tech stocks remains, and the overall upward trend remains unchanged.