Crypto market liquidity dries up following Alameda and FTX collapse

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The crypto market has seen liquidity dry up as market makers re-examine their exposure and risk tolerance.

The ability to purchase large amounts of bitcoin and ether has declined since Alameda shut down.

The firms, both founded by disgraced former billionaire Sam Bankman-Fried, were key market participants until they filed for bankruptcy protection earlier this month."Crypto liquidity is dominated by just a handful of trading firms, including Wintermute, Amber Group, B2C2, Genesis, Cumberland and [the now defunct] Alameda," the firm said."With the loss of one of the largest market makers, we can expect a significant drop in liquidity, which we will call the 'Alameda gap.

The ability to make a large order within 2% of bitcoin's midpoint price has declined to the lowest level since early June. Wintermute's Evgeny Gaevoy said that market makers re-examining their exposure to certain venues in the wake of the FTX meltdown is one driving factor behind the liquidity dry-up.

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fintechfrank That’s so shameful, Gemini planned this to trap our funds, they must have gotten a handsome cut, now Genesis declaring bankruptcy to get off the hook

Theyy don’t want youu to know thiss

Theyy don’t want youu to know thiss

Quite the shocker after everyone has been effectively wiped out! Brilliant reporting.

Theyy don’t want youu to know thiss

Mind the gap

It was that nerdy intelligent girl that just wanted to save the world!!!!

Really sucks to not have Alameda as the losing end of every trade now 😭

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