Tom Lee: Liquidity Crisis in Market Makers Driving Crypto Decline
TLDR
- Tom Lee attributes the recent downturn in the crypto market to liquidity issues in market makers’ balance sheets.
- The October 10 crash caught market makers off-guard, leading to severe liquidity problems.
- Reduced capital from traders has left market makers struggling to operate efficiently.
- Lee compares the role of market makers in crypto to that of central banks in traditional finance.
- Bitcoin and Ethereum have seen significant price declines, with further volatility expected.
Tom Lee, chairman of BitMine, believes the recent downturn in the cryptocurrency market stems from deep issues in market makers’ balance sheets. Speaking on CNBC, Lee pointed to the October 10 market crash, which wiped out $20 billion….
