The chief commercial officer of crypto market maker Auros, Jason Atkins, has increased tensions in crypto markets by identifying liquidity as the main challenge in the market, rather than a volatility crisis. Atkins made the statement ahead of the consensus event in Hong Kong.
Analysts went on to note that while institutional interest in crypto has continued to grow throughout 2025, limited market liquidity remains a major obstacle, preventing large Wall Street players from entering without causing price disruption.
This situation prompted Atkins to issue 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.
The main question, he says, is whether these markets can meet the significant institutional demand. “It’s one thing to say ‘we convinced them to come now,'” Atkins added. “It’s another to ask, ‘Do you have enough room for everyone?’ »
Auros’ Atkins Concerns About State of Liquidity in Crypto Markets
While this discussion made headlines, Atkins still insisted that liquidity a key question in the crypto markets, mainly due to decreasing market interest. He further explained that massive sell-offs, such as the October 10 crash, which exceeded 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 have shifted their focus from generating demand to meeting demand.
This statement indicates that reduced trading activity incentivizes market makers to reduce their risks, thereby increasing volatility, which leads to stricter risk protocols and reduced market liquidity.
Meanwhile, Atkins argued that this situation cannot be resolved when institutions serve as stabilizers while markets remain weak. This incident demonstrates that the market does not have a natural safety net in difficult times.
As a result, a cycle is established in which volatility, prudence and illiquidity reinforce each other, thereby dampening market performance, even if long-term returns are high.
At this point, Atkins emphasized that volatility in itself does not scare big investors, but the problem arises when volatility meets market weakness. He also acknowledged that it is difficult to manage volatility in tight markets because it is difficult to protect your investments and selling them is even more difficult.
Institutions face significant challenges in the crypto sector
Illustrated statement from Atkins that the current situation in crypto markets is significantly more serious for institutions than for individual traders. Additionally, it should be noted that large investors have adopted strict capital preservation rules, implying that they are limited in their ability to accept liquidity risk.
“At that level of wealth, or if you’re a large 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 of money moving from crypto to AI, arguing that these two sectors are at contrasting stages of development.
Following his argument, it was pointed out that while artificial intelligence has been around for a while, the recent increased interest in AI has never been seen before and is not leading to the flight of funds from the crypto ecosystem.