October Crypto Crash Left Market Makers Entangled

Effects of the October Crypto Crash

In the past October, the significant decline in cryptocurrencies left market makers with a certain inventory. A statement from BitMEX emphasized that this situation led to a slowdown in trading volumes. The cryptocurrency market is facing many dynamics that affect investor sentiment.

Challenges for Market Makers

After the crypto crash, market makers began to hold an excess of coins. This situation caused trading volumes to decline and market liquidity to decrease. As investors faced uncertainty in the market, they became hesitant to trade. BitMEX pointed out that this development further complicates the trading environment by reviewing recent data.

As investors are concerned about the future of market fluctuations, these challenges faced by market makers continue to affect the overall functioning of the cryptocurrency ecosystem.