RETREAT

Summary from the TLDR Crypto newsletter

TradFi funds that were heavily involved in crypto market making like Jane Street and Jump have been pulling out from the space in the US due to increased regulatory scrutiny, leading to decreased liquidity and potentially scaring away other institutional investors. This retreat and the subsequent liquidity issues have caused price instability in crypto markets. This has created a dynamic in the market where bigger investors are sidelined or inactive as they worry about causing large price fluctuations and smaller investors that are still trading are subject to greater volatility.