Tom Lee, co-founder of Fundstrat Global Advisors, has revealed that one or two significant market makers have exited the U.S. cryptocurrency market. This move could affect liquidity and heighten price volatility, as market makers are crucial for facilitating trades and maintaining stable bid-ask spreads. While Lee did not disclose the names of the firms or the reasons for their departure, factors such as regulatory pressures and the prolonged bearish market since late 2021 may have contributed. The exit of these key players could lead to increased market turbulence, impacting trading efficiency and investor costs.
Major Market Makers Exit U.S. Crypto Market, Says Tom Lee
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