Data Dive: JPMorgan Pinpoints Perp Futures as Epicenter of Crypto Sell-Off

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A new report from JPMorgan isolates the source of last week’s crypto correction: leveraged crypto native traders.

The key evidence lies in the 40% collapse in open interest for Bitcoin and Ethereum perpetual futures, a decline that far exceeded the price drops and indicates forced liquidations.

Meanwhile, flows from the broader market were relatively calm. Spot Bitcoin ETF outflows were a minimal 0.14% of AUM, and CME Bitcoin futures saw little action.

The analysis concludes that the deleveraging was an internal event for the crypto ecosystem, with traditional investors playing a minor role.