Tom Lee: Why Crypto Market and BTC Are Crashing Harder Than Stocks
Bitcoin, Ethreum ( BTC), and XRP have dropped sharply - but behind the charts is a liquidity shock few noticed.
According to Tom Lee, it started back on October 10 with a bug: a major exchange used faulty price feeds, triggering auto-liquidations across nearly 2M accounts. A stablecoin even dropped to $0.65, setting off a domino effect.
🔻 The aftermath?
- Market makers took massive losses
- Liquidity dried up
- Spreads widened
- Crashes got faster
Lee says market makers are the “central bank” of crypto - and when they pull back, the market becomes fragile.
We’re now 6 weeks into what may be an 8-week reset cycle, just like in 2022. Until liquidity returns, crypto may stay more volatile than stocks.
