{"id":396642,"date":"2023-05-22T21:27:04","date_gmt":"2023-05-22T21:27:04","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=396642"},"modified":"2023-05-22T21:27:04","modified_gmt":"2023-05-22T21:27:04","slug":"crypto-industry-faces-setbacks-as-jane-street-and-jump-trading-retreat","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/crypto-industry-faces-setbacks-as-jane-street-and-jump-trading-retreat","title":{"rendered":"Crypto Industry Faces Setbacks as Jane Street and Jump Trading Retreat"},"content":{"rendered":"
The crypto industry has been hit by a series of setbacks, causing significant disruption and raising concerns about its stability. First, the crypto lenders experienced a major collapse, followed by the collapse of the industry’s second-largest exchange. Subsequently, even crypto-friendly banks faced significant challenges.<\/p>\n
The latest blow to the industry comes as major trading firms, responsible for the market’s infrastructure, are retreating from crypto trading in the United States due to increased regulatory scrutiny.<\/p>\n
As a result, the crypto market is rapidly losing liquidity and mainstream appeal, making it less attractive to institutional investors. This changing landscape resembles the earlier days of the crypto industry when it was considered riskier and less established.<\/p>\n
The withdrawal of major market makers from crypto trading has profound implications. Large investors are becoming hesitant to participate due to concerns about increased price volatility resulting from the reduced presence of market makers.<\/p>\n
Noelle Acheson, a former head of market insights at Genesis Global Trading Inc., highlights the potential for a downward spiral, where market makers are needed to create demand, but demand is necessary for market makers to return. This scenario creates a challenging cycle that could further exacerbate the liquidity and stability issues in the market.<\/p>\n