The post Tom Lee Says A Market Maker or Two Is Gone appeared on BitcoinEthereumNews.com. Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead. Grab a coffee and settle in, because the latest crypto pullback may not be what it seems, at least according to BitMine chair Tom Lee. Beneath the headlines and market jitters, a far more unexpected force may be driving Ethereum’s slump, one that has little to do with the Fed, and everything to do with crypto’s own plumbing. Sponsored Sponsored Crypto News of the Day: Tom Lee Warns of ‘Crypto QT’ as Ethereum Enters a Supercycle Setup Ethereum may be suffering from one of its sharpest drawdowns of the year, but Fundstrat’s Tom Lee argues the real culprit is not the Federal Reserve (Fed). Rather, it is a sudden liquidity shock inside crypto itself. Speaking in a new interview, Lee said the October 10 washout unleashed the largest liquidation event in crypto history, wiping out players and potentially crippling key market-makers, creating what he calls a form of “crypto QT.” According to the BitMine chair, the market’s weakness stems from a combination of macro fear and internal structural stress. “There was this big liquidation event on October 10. One that really was a larger liquidation event than anything seen in history,” he explained. At the same time, crypto’s sensitivity to the interest-rate outlook has kept traders skittish. “If you end up with a hawkish Fed, it gets crypto investors very nervous.” However, for Ethereum specifically, Lee believes the more important factor is the quiet disappearance of crucial liquidity providers following the wipeout. “It does have the signs of that maybe a market maker or two actually is unable to provide market liquidity, and as you know, as liquidity contracts, it’s the same thing as the central bank tightening. So… The post Tom Lee Says A Market Maker or Two Is Gone appeared on BitcoinEthereumNews.com. Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead. Grab a coffee and settle in, because the latest crypto pullback may not be what it seems, at least according to BitMine chair Tom Lee. Beneath the headlines and market jitters, a far more unexpected force may be driving Ethereum’s slump, one that has little to do with the Fed, and everything to do with crypto’s own plumbing. Sponsored Sponsored Crypto News of the Day: Tom Lee Warns of ‘Crypto QT’ as Ethereum Enters a Supercycle Setup Ethereum may be suffering from one of its sharpest drawdowns of the year, but Fundstrat’s Tom Lee argues the real culprit is not the Federal Reserve (Fed). Rather, it is a sudden liquidity shock inside crypto itself. Speaking in a new interview, Lee said the October 10 washout unleashed the largest liquidation event in crypto history, wiping out players and potentially crippling key market-makers, creating what he calls a form of “crypto QT.” According to the BitMine chair, the market’s weakness stems from a combination of macro fear and internal structural stress. “There was this big liquidation event on October 10. One that really was a larger liquidation event than anything seen in history,” he explained. At the same time, crypto’s sensitivity to the interest-rate outlook has kept traders skittish. “If you end up with a hawkish Fed, it gets crypto investors very nervous.” However, for Ethereum specifically, Lee believes the more important factor is the quiet disappearance of crucial liquidity providers following the wipeout. “It does have the signs of that maybe a market maker or two actually is unable to provide market liquidity, and as you know, as liquidity contracts, it’s the same thing as the central bank tightening. So…