The post Expert Blames Crypto Crash on Market Maker Liquidity Shock appeared on BitcoinEthereumNews.com. Bitcoin The crypto market has taken another hit, but BitMine Chairman Tom Lee insists the story behind the drop has nothing to do with fading adoption or a weakening long-term outlook. Key Takeaways: Tom Lee says the crypto crash is likely caused by a liquidity problem at a major market maker, not fading adoption. Lee expects the downturn to be temporary but warns traders to avoid leverage until markets stabilize. The U.S. and China are aiming to finalize a rare earth minerals deal by Thanksgiving, which could improve broader market sentiment Lee argues that the sell-off is more likely tied to a liquidity crunch on the balance sheet of a major market-making firm — a scenario that can trigger chain-reaction selling across exchanges. Not a Demand Problem — A Liquidity Shock As reported by WuBlockchain, Lee explained that when a large market maker becomes financially stressed, the result is not gradual weakness but sudden, heavy selling. Liquidity dries up, bids disappear, and the price crashes faster than fundamentals would suggest. In his words, aggressive traders tend to “push the wounded player until they drop,” accelerating the decline to force more liquidations. Bitcoin and Ethereum both continue to face selling pressure, but Lee says neither asset has lost institutional relevance. Instead, he sees the downturn as a short-term episode created by structural damage rather than a shift in sentiment about crypto. Long-Term View Still Standing Despite acknowledging that Bitcoin could fall further — potentially retracing as much as half from previous highs before stabilizing — Lee maintains that his long-term thesis hasn’t changed. BitMine continues to accumulate Ethereum, and Lee believes Wall Street’s embrace of the asset will only strengthen over time. He repeated a message for retail investors: this is not the moment to trade with leverage. Borrowed positions are… The post Expert Blames Crypto Crash on Market Maker Liquidity Shock appeared on BitcoinEthereumNews.com. Bitcoin The crypto market has taken another hit, but BitMine Chairman Tom Lee insists the story behind the drop has nothing to do with fading adoption or a weakening long-term outlook. Key Takeaways: Tom Lee says the crypto crash is likely caused by a liquidity problem at a major market maker, not fading adoption. Lee expects the downturn to be temporary but warns traders to avoid leverage until markets stabilize. The U.S. and China are aiming to finalize a rare earth minerals deal by Thanksgiving, which could improve broader market sentiment Lee argues that the sell-off is more likely tied to a liquidity crunch on the balance sheet of a major market-making firm — a scenario that can trigger chain-reaction selling across exchanges. Not a Demand Problem — A Liquidity Shock As reported by WuBlockchain, Lee explained that when a large market maker becomes financially stressed, the result is not gradual weakness but sudden, heavy selling. Liquidity dries up, bids disappear, and the price crashes faster than fundamentals would suggest. In his words, aggressive traders tend to “push the wounded player until they drop,” accelerating the decline to force more liquidations. Bitcoin and Ethereum both continue to face selling pressure, but Lee says neither asset has lost institutional relevance. Instead, he sees the downturn as a short-term episode created by structural damage rather than a shift in sentiment about crypto. Long-Term View Still Standing Despite acknowledging that Bitcoin could fall further — potentially retracing as much as half from previous highs before stabilizing — Lee maintains that his long-term thesis hasn’t changed. BitMine continues to accumulate Ethereum, and Lee believes Wall Street’s embrace of the asset will only strengthen over time. He repeated a message for retail investors: this is not the moment to trade with leverage. Borrowed positions are…