The recent selloff in Bitcoin (BTC-USD), Ethereum (ETH-USD) and other cryptocurrencies is "eerily" similar to 2018, JPMorgan fixed income strategists including Joshua Young wrote in a note Monday, but there are key differences, including market depth, availability of leverage and the "rise of DeFi."Though the selloff was undoubtedly triggered by exogenous events, like the "handful" of individuals who jawbone the crypto market with varying levels of support (read: Musk, Saylor, Dalio) and governmental bodies (read: China regulation, IRS), the analysts point to the increased volatility leading to a deterioration in market depth.The market makers in this market tend to "pull back" during volatile time frames, the analysts wrote, which can amplify the selloff.Further amplifying the selloff are leverage concerns. Data around sourcing leverage suggests that institutional longs were resilient in the face of the selloff, while retail/small account positions showed a steady decline. Open interest in derivatives positions have also
