One year after 10/10 flash crash, bitcoin and ether liquidity have rebounded, but altcoins still face risks
Bitcoin and ether order books are deeper than before the crash, while altcoin liquidity has declined. Spot trading remains below pre-crash levels.
Intelligence analysis by Qwen 2.5 (3B)
One year after the largest liquidation event in crypto history, bitcoin and ether liquidity have recovered, but altcoins continue to face challenges.
Bitcoin and ether have more money ready to buy and sell than before the crash. But smaller coins and people buying and selling coins directly (spot trading) still have less money ready to go.
Analysis
Market Depth Comparison
Before the Crash
- Bitcoin and ether order books were at their lowest levels since the crash, with depth measured in dollars reflecting the value of market makers' capital.
After the Crash
- Bitcoin and ether order books have recovered, with depth measured in dollars reflecting more capital from market makers, not just cheaper coins.
Altcoin Liquidity
- Altcoin liquidity has moved in the opposite direction, with dollar depth falling steadily since early 2025, masked by falling token prices.
Spot Trading Volume
- Weekly spot trading volume has nearly halved from the crash week, though it has doubled from an August low.
Market Impact
- The recovery in major cryptocurrencies like BTC and ETH is a positive sign for the market, but altcoins continue to struggle with liquidity issues.
Future Outlook
- Analysts expect the divergence between major cryptocurrencies and altcoins to persist into the next year, with majors dominating institutional interest and volumes.
Key points
- Bitcoin and ether order books are deeper than before the crash
- Altcoin liquidity has declined since the crash
- Spot trading volume has not fully recovered from the crash
As market makers continue to return to major cryptocurrencies, we can expect liquidity to remain strong in the future.
Altcoins may continue to struggle with liquidity issues, which could affect their performance in the market.
Market signals
- BTC Bitcoin and ether order books have recovered, reflecting more capital from market makers.
- ETH Ether’s order book has recovered, with depth at 1% above pre-crash levels.
AI-generated analysis of potential market relevance. Not financial advice.
