The market making algorithm for Bitcoin is: the highest bid and the lowest ask.

Personally I have more trust into established banks as market makers than into unregulated crypto exchanges, when it comes to market making.

But we probably have to agree to disagree here.

The exchanges aren't market makers, they're exchanges. Totally separate concept. The NYSE isn't a market maker for stocks, for example.

Your confusion seems to be that the exchanges are coming up with the prices, which is not at all how it works. Again, the price is set exactly the same way as it is on the NYSE, by matching bids and asks.

You can just go to any online exchange and check the order books and history. How much more transparent can it be?