Liquidity Crisis in Crypto: Auros' Jason Atkins Warns of Growing Market Risk

Jason Atkins, co-founder of algorithmic trading firm Auros, has highlighted a deepening liquidity crisis as a major concern for the cryptocurrency market. He points out that while market volatility has decreased, the underlying liquidity—essential for smooth trading and price stability—has significantly deteriorated. This trend makes the market more vulnerable to sharp price swings from large trades. Atkins links this issue to the collapse of several major crypto entities in 2022, which removed key market makers and liquidity providers. The current environment, he suggests, is marked by a "liquidity drought" that poses a persistent risk to crypto asset stability and investor confidence, demanding close monitoring by all market participants.