Lack of liquidity is crypto market's biggest problem, says Auros CCO

The biggest problem facing the cryptocurrency market today is a lack of liquidity, according to Jason Atkins, chief client officer at crypto market making firm Auros. In an interview with CoinDesk, Atkins stated that the market's current structural flaws are a far more serious issue than volatility. He explained that the market depth—the total value of buy and sell orders within 1% of the market price—is insufficient to accommodate capital from Wall Street, meaning the market cannot support institutional investors even if they wish to enter. Atkins emphasized that building the infrastructure to handle this scale is more urgent than simply attracting institutional interest. He attributed the liquidity shortage to an exodus of market participants following repeated deleveraging events, including the largest-ever forced liquidation event last October. Atkins added that a decline in liquidity providers has suppressed trading, causing market makers to offer thinner quotes. This, in turn, leads to higher volatility, which conflicts with institutional risk management regulations and blocks capital inflows, creating a vicious cycle.