Crypto Leverage Drives Bitcoin Down 13% as Market Sees Significant Unwinding

Recent volatility in the crypto market was driven by leveraged trading on perpetual futures, causing a significant sell-off that affected both Bitcoin and Ethereum. While Bitcoin saw an impressive 13.1% decline during the downturn, ETFs experienced minimal impact. According to analysts from JPMorgan, this action primarily stemmed from crypto-native investors utilizing leverage on these platforms rather than traditional institutional trading activity.