Liquidity is always very important; without it, there is no growth; it is like water for plants.
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krypton_bit
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Why the market continues to decline: an analysis for those who want to understand what is happening
<t-30/>$BTC #bitcoin $BNB
Tom Lee explained that the key factor of the current decline is the issues in the balances of market makers. This is not related to macroeconomics or new regulations, but is caused by an internal liquidity failure.
1. How it all started
On October 10, the stablecoin USDe on Binance lost its peg. This triggered a cascade of liquidations, after which market makers incurred losses. They are the ones who provide liquidity, and when their capital decreases, the market becomes weaker.
Tom Lee explained that the key factor of the current decline is the issues in the balances of market makers. This is not related to macroeconomics or new regulations, but is caused by an internal liquidity failure.
1. How it all started
On October 10, the stablecoin USDe on Binance lost its peg. This triggered a cascade of liquidations, after which market makers incurred losses. They are the ones who provide liquidity, and when their capital decreases, the market becomes weaker.
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