One year after a significant liquidation event on October 10, 2025, cryptocurrency market liquidity has shown a stark divergence, with Bitcoin and Ethereum recovering while altcoin liquidity continues to contract, according to CoinDesk Research.
Bitcoin and Ethereum Rebound
Research indicates that liquidity for major cryptocurrencies has improved. Bitcoin’s 1% order book depth on October 7, 2026, reached approximately $11.7 million, marking a 75% increase compared to the day of the crash. Ethereum has also seen substantial gains, with its 0.5% order book depth more than doubling to around $4.2 million, and its 1% order book depth rising by roughly three-quarters to approximately $5.3 million.
These figures suggest that market makers are committing more capital to Bitcoin and Ethereum, a trend attributed by CoinDesk Research not just to lower prices but to a deeper commitment of funds.
Altcoin Liquidity Erosion
In contrast, the USD depth for a basket of altcoins has steadily declined since January 1, 2025. The depth at 5% from the price for altcoins has decreased by about one-third since early 2025, now standing at approximately $2 million. CoinDesk Research interprets this recovery in altcoin depth, when measured in token quantity, as primarily a result of price drops, potentially masking a continuous erosion of committed capital.
Trading Volume and Event Context
This liquidity divergence occurs alongside significantly lower spot trading volumes compared to the liquidation event. The average weekly spot trading volume for the four weeks ending September 27, 2026, was approximately $279 billion, a sharp decrease from the $801 billion recorded during the week of the October 10, 2025 event. August 2026 saw weekly spot trading volume hit a low of about $135 billion.
The October 10, 2025 liquidation event, which saw over $19 billion in leveraged positions liquidated, was triggered partly by Bitcoin’s drop below $105,000 following an announcement by President Trump regarding tariffs on Chinese imports. CoinDesk Research analyzed market depth across several key dates, including January 1, 2025, the crash day, January 1, 2026, and the current week.
Outlook
Market makers have largely returned to major cryptocurrencies, with liquidity now exceeding pre-crash levels. This trend is anticipated to persist into the next year, with major cryptocurrencies expected to continue dominating institutional interest and trading volume, barring a few exceptions among altcoins. Uncertainties remain regarding the precise amount of capital flowing into Bitcoin and Ethereum, specific altcoins that may defy the trend, and the long-term trajectory of altcoin liquidity.
Why This Matters
The materials describe a narrow update: One year after a significant liquidation event on October 10, 2025, research indicates that liquidity for Bitcoin and Ethereum has improved, with order book depth increasing. The exact amount of capital that has rotated into Bitcoin and Ethereum.
Broader Context
Source materials place the factual news in this context: The article discusses the one-year anniversary of a major liquidation event on October 10, 2025, which involved over $19 billion in leveraged positions being liquidated.
