Fundstrat co-founder Tom Lee has attributed the recent Bitcoin downturn to a liquidity drought triggered by the October 11 flash crash. Speaking on CNBC, Lee highlighted that market makers faced losses between $19 billion and $20 billion, leading them to sell assets to cover balance sheet deficits. This sell-off further deepened the liquidity crunch, with order book depth plummeting by 98%, causing a cycle of forced liquidations and price suppression. Lee emphasized that market makers, who function like central banks in the crypto space, are now in their sixth week of recovery. They are rebuilding financial buffers through deleveraging and capital injections. Meanwhile, BitMine Immersion Technologies has started accumulating Ethereum, indicating a belief in a liquidity-driven market rebound.