Tom Lee speculates wounded market makers behind crypto crunch — TradingView News
The recent downward pressure on the cryptocurrency market could be the result of deep holes in the balance sheets of market makers, according to Tom Lee, chairman of Ether treasury company BitMine.
Speaking with CNBC on Thursday, Lee suggested that the Oct. 10 market crash, which saw a record $20 billion liquidated from the market, ultimately caught some market makers off-guard, causing severe liquidity issues.
With less capital to operate, combined with reduced capital from traders as their primary source of revenue, it’s a tough time for market makers, Lee said. As a result, this has also led them to shrink their “balance sheet further” in a bid to free up more capital.
“And if they’ve got a hole in their balance sheet that…
