Analysts at %JPMorganChase (NYSE: $JPM) say that the current selloff in %Cryptocurrencies is being driven by retail investors.

In a note to clients, JPMorgan, the biggest U.S. bank with more than $3 trillion U.S. of assets under management, said that retail investors were net sellers of crypto in April, especially spot %Bitcoin exchange-traded funds (ETFs) that have seen outflows in recent weeks.

The JPMorgan analysts said they continue to see three headwinds for crypto, elevated positioning, high prices versus gold, and subdued venture capital (VC) funding.

Furthermore, JPMorgan said that crypto markets have seen significant profit taking in recent weeks, with retail investors playing a bigger part in the selloff than institutional investors.

Bitcoin’s price dropped 16% in April, the biggest monthly decline in two years.

Investors sold spot Bitcoin ETFs at the fastest pace ever on May 1, with net outflows of $563.7 million U.S, the biggest since the funds started trading on January 11 of this year.

Selling of cryptocurrencies among institutional investors has remained muted, said the JPMorgan Chase analysts.

The price of Bitcoin, the largest cryptocurrency by market cap, has risen 37% so far in 2024 and is currently trading right around $60,500 U.S.