Who's Really Shaking Up the Crypto World?
The Crypto Market Nosedive: Who's Really Behind It?
The crypto market recently experienced a significant downturn, but the culprits might not be who you'd expect. Unlike previous crashes, this one wasn't driven by big institutions but by everyday crypto enthusiasts and retail investors.
Bitcoin and Ethereum Take a Hit
Both Bitcoin and Ethereum saw substantial losses. However, the interesting twist is that the big players in Bitcoin ETFs and CME futures didn't panic sell.
- Bitcoin ETFs: Saw some outflows, but the amounts were minimal compared to the total assets.
- Ethereum ETFs: Had a bit more activity, but still nothing major.
The Real Drama: Perpetual Futures Market
The real action was in the perpetual futures market, where crypto-native traders were cutting their losses. Both Bitcoin and Ethereum contracts saw a significant drop in open interest, far more than the spot prices.
Momentum-Driven Traders in the Spotlight
It appears that momentum-driven traders were the main movers of the market. They were the ones reducing risk and causing the steepest losses. Ethereum took a bigger hit than Bitcoin, which aligns with its known volatility.
Crypto-Native Traders: The Main Drivers
This situation highlights that crypto-native traders are the primary drivers of the downturn. It's not the big institutions calling the shots but the everyday folks deeply involved in the crypto space. This serves as a reminder that the market can be influenced by a variety of factors, and it's not always the big players who are in control.