JPMorgan Chase: The recent sell-off in the cryptocurrency market was driven by retail investors

PANews reported on May 3rd that JPMorgan Chase (JPM) released a report stating that the cryptocurrency market has seen significant profit-taking in recent weeks, with retail investors playing a larger role in the sell-off than institutional investors.

JPMorgan pointed out that retail investors sold off their cryptocurrency and stock assets in April. There was an outflow of funds from Bitcoin exchange-traded funds (ETFs), along with three other unfavorable factors: high positions, high prices of Bitcoin relative to gold and expected production costs, as well as sluggishness in crypto risk investment funds.

Due to the lack of positive factors and declining demand in the retail market, JPMorgan is cautious about the cryptocurrency market recently.