Core Insights - The recent crypto market selloff was primarily driven by crypto-native investors rather than institutional players, as indicated by JPMorgan's analysis [2][4] - Over $19 billion in liquidations occurred, leading to a significant decline in market sentiment and prices, with Bitcoin dropping below $105,000 [3][5] - Institutional flows remained stable, with CME's Bitcoin open interest holding steady and minor ETF outflows, suggesting that institutional investors were largely passive during the selloff [4][5] Market Dynamics - The selloff resulted in nearly $12 billion in futures open interest disappearing in a single day, marking the largest decline in dollar terms ever recorded [3] - Despite the turmoil, ETFs experienced steady inflows, with Bitcoin ETF inflows at $2.4 billion and Ethereum ETF inflows at $460 million [6] - The market is characterized by a divide, where retail investors are selling while institutions continue to buy, indicating a "cleaning out" of the crypto market [4][5] Investor Behavior - Ancient whales and those believing in the four-year cycle were significant sellers, with many having planned their sales in alignment with historical patterns [7] - The sentiment among Asian whales remains focused on the four-year cycle, influencing their decision to sell this year [7]