Fundstrat: Crypto Market Downturn Stems From Market Makers’ Troubles

• Fundstrat pointed to signs of balance sheet problems at one or more market makers.
• According to the company’s CIO, the weakness in the crypto market is due to this.
• Despite this, Tom Lee believes that Ethereum’s “supercycle” is not in jeopardy.

Tom Lee, head of investment company Fundstrat Capital, said that the current pressure on the cryptocurrency market may be the result of financial difficulties of major players. According to his assumption, one or more market makers have significant balance sheet issues, and this is affecting asset performance.

According to the expert, whales are trying to provoke liquidation and collapse of the price of the first cryptocurrency.

The expert emphasized that the surge in volatility is short-term in nature. He also reassured investors, saying that the situation does not jeopardize the global trend of development of the Ethereum ecosystem.

In addition, Lee recommends refraining from leverage in the current environment and avoiding potential liquidations.

Recall, earlier in JPMorgan Chase called the level of $94, 000 support for bitcoin because of the cost of mining.