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Bitcoin Updates: Individual Investors View Cryptocurrency as Distinct Asset Category, Triggering $4 Billion ETF Outflow

Bitcoin Updates: Individual Investors View Cryptocurrency as Distinct Asset Category, Triggering $4 Billion ETF Outflow

Bitget-RWA2025/11/20 23:36
By:Bitget-RWA

- JPMorgan analysts attribute crypto market correction to $4B retail outflows from BTC/ETH spot ETFs in November, surpassing February's record. - Contrasting $96B equity ETF inflows highlights crypto sell-off's independence from broader risk-off sentiment, driven by non-crypto retail investors. - Market cap fell to $3.07T as Bitcoin dropped below $90K and Ethereum slid under $3K, with stablecoin outflows reaching $85B. - MicroStrategy faces $2.8B-$8.8B passive outflows risk if MSCI excludes firms with >50%

JPMorgan analysts have pointed to retail investors offloading spot

and ETFs as the main factor behind the ongoing correction in the crypto market, a pattern that has grown more pronounced after bitcoin slipped beneath significant support levels in November. , that individual investors have pulled out nearly $4 billion from BTC and ETH ETFs so far this month, already surpassing the previous record for outflows set in February. In stark contrast, retail investments into equity ETFs have soared to $96 billion in November, .

Bitcoin Updates: Individual Investors View Cryptocurrency as Distinct Asset Category, Triggering $4 Billion ETF Outflow image 0
The analysts observed that this correction is distinct from the volatility seen in October, which was largely caused by crypto-focused traders reducing leverage in perpetual futures. — mainly retail buyers using spot ETFs — have led the selling. highlighted that this trend demonstrates retail investors continue to treat crypto and stocks as separate investment categories, .

The overall crypto sector has

, with the total market value dropping to $3.07 trillion, the lowest since early May. Bitcoin has fallen under $90,000, and confirming the end of a two-year upward trend. also dropped below $3,000, with analysts identifying the 200-week moving average as a crucial support. The sell-off has been made worse by stablecoin withdrawals, which have reached $85 billion — the lowest since October 11 — and a Crypto Fear and Greed Index that has plunged into extreme fear territory.

Adding to these challenges is the structural risk facing MicroStrategy (MSTR), a company with significant leveraged bitcoin holdings.

that MSCI’s upcoming January 15 decision on whether to remove companies with more than half their assets in digital currencies from equity indices could prompt passive outflows between $2.8 billion and $8.8 billion. With MSTR’s market cap at $59 billion and its presence in major indices like the Nasdaq 100, to forced selling if it is excluded. The company’s recent lag behind bitcoin’s performance has been linked to concerns over possible index removal, rather than weakness in the crypto market itself, .

JPMorgan’s report highlights the vulnerability of crypto’s indirect ties to mainstream finance. Although the sector still moves in tandem with small-cap tech shares,

point to mounting structural risks. The firm warned that if MSTR is removed from indices, it could have a ripple effect, .

As the crypto sector navigates these headwinds, attention is shifting to potential market movers, such as MSCI’s index decision and the Federal Reserve’s policy direction. For now, the complex interplay of retail sentiment, underlying risks, and macroeconomic trends continues to drive volatility in the market.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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