The chief commercial officer at crypto market maker Auros, Jason Atkins, heightened tensions in the crypto markets by identifying liquidity as the market’s primary challenge, rather than a volatility crisis. Atkins delivered this statement before the Consensus event in Hong Kong.
Analysts later noted that while institutional interest in crypto has continued to grow throughout 2025, limited market liquidity remains a key barrier, preventing large Wall Street players from entering without causing price disruptions.
This situation prompted Atkins to publish a statement alleging that markets cannot conclude that institutional investors want to participate in their activities if the factors required to make this possible are absent.
According to him, the primary question is whether these markets can handle the significant institutional demand. “It’s one thing to say, ‘we’ve convinced them to come now,’” Atkins added. “It’s another to ask, ‘Do you have enough room for everyone?’”
Auros’s Atkins raises concerns about liquidity status in the crypto markets
As this discussion hit headlines, Atkins still insisted that liquidity has become a key issue in the crypto markets, mainly due to fading market interest. He further explained that substantial sell-offs, such as the October 10 crash, that have outpaced the speed at which traders and leverage can return to the market, are the factors behind this trend.
To better understand this point, industry executives highlighted that liquidity providers shifted their focus from demand generation to demand fulfillment.
This statement indicated that reduced trade activity triggers market makers to lower their risk, thereby heightening volatility, which in turn leads to tighter risk protocols and reduced market liquidity.
In the meantime, Atkins argued that this situation cannot be solved when institutions serve as stabilizers while markets remain weak. The incident demonstrates that the market lacks a natural safety net in difficult times.
As a result, a cycle is established in which volatility, caution, and illiquidity reinforce one another, thereby suppressing market performance, even as long-term yields are strong.
At this point, Atkins highlighted that volatility itself does not scare off major investors, but the problem arises when volatility meets weak markets. He also acknowledged that it is difficult to handle volatility in thin markets, as safeguarding one’s investment is challenging, and selling them off is even more difficult.
Institutions face significant challenges in the crypto industry
Atkins’ statement illustrated that the current situation in the crypto markets is substantially greater for institutions than for individual traders. Moreover, it is worth noting that major investors have adopted stringent rules for capital preservation, implying they are limited in their ability to accept liquidity risk.
“At that level of wealth, or if you are a huge institution,” he said, adding that, “it’s not just about getting the highest returns. It’s about getting the best returns while keeping your capital safe.”
Atkins also expressed disapproval of the idea that money is transferred from crypto to AI, arguing that these two sectors are at contrasting stages of development.
Following his argument, reports highlighted that, while artificial intelligence has existed for some time, the recent heightened interest in AI has never been seen before and is not causing funds to leave the crypto ecosystem.
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