The crypto market is going through a zone of turbulence. After months of growth, bitcoin suddenly fell below $90,000, dragging all digital assets with it. According to JPMorgan, those responsible for this correction are not the traditional institutional players, but rather individual investors. A trend that questions the strength of the crypto rally in 2025.
In brief
- Retail investors are massively selling their bitcoin and ether ETFs, triggering the current crypto market correction.
- Bitcoin's crossing of $94,000 accelerated the wave of sales according to JPMorgan.
- 3 scenarios are emerging for bitcoin: technical rebound, domino effect, or opportunity for institutions.
Individual investors, new scapegoats for the bitcoin crash
The current correction in the crypto market finds its origins in an unexpected movement: the massive sales of Bitcoin and Ether ETFs by individual investors. According to JPMorgan, nearly $4 billion was withdrawn from spot ETFs in November, an unprecedented amount. Unlike past corrections, often attributed to professional traders or hedge funds, this time it is small portfolios that are triggering the fall.
In October, the drop was mainly linked to the deleveraging of positions on perpetual futures contracts! A complex financial product, mainly used by crypto-native players. But in November, the scenario changes radically. ETFs, accessible and popular with the general public, are becoming the main exit channel. But why do individual investors, often perceived as long-term hodlers, sell massively? Some mention:
- A simple profit taking after an exceptional year;
- While others see it as a sign of weariness in the face of persistent volatility.
Bitcoin at $94,000, the threshold that started it all
The triggering of this wave of sales of Bitcoin and Ether ETFs coincides with BTC falling below a key level: $94,000. According to JPMorgan, this threshold corresponds to the estimated cost of production of crypto, a major psychological benchmark for investors. Its downward crossing acted as a warning signal, accelerating profit taking and position exits.
Historically, deep corrections often occur when the price of bitcoin falls below its cost of production. For what ? Because this calls into question the profitability of miners and the confidence of investors. In this context, ETFs, supposed to offer simplified and secure exposure to the crypto market, are transforming into a vector of panic. Their liquidity and accessibility become weaknesses in times of stress.
3 scenarios for BTC and the crypto market
Faced with this situation, several scenarios emerge for the coming weeks:
- Optimistic, counting on rapid stabilization
Indeed, after an oversold phase, prices could rebound, once again attracting opportunistic buyers. Current levels could even represent an interesting entry for institutional investors, who have not yet fully deployed their capital in the sector.
- More pessimistic, considers a domino effect
If ETF sales intensify, they could trigger cascading selloffs in derivatives markets, adding to downward pressure. In this case, bitcoin could test lower supports, around $80,000, before finding new life.
- An opportunity for big players
Institutions, such as JPMorgan, could take advantage of this drop to strengthen their positions in Bitcoin (BTC) at more attractive prices. A strategy which, if confirmed, could restore credibility to the market in the medium term.
This correction of BTC below $90,000 reveals that individual investors, once perceived as unconditional supporters, are becoming accelerators of the decline. A development that raises questions about the future of bitcoin. In your opinion, is this trend cyclical, or does it signal a lasting disengagement from small portfolios?
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