Bitcoin and Ether Liquidity Rebuilds a Year After $19 Billion Flash Crash, But Altcoins Lag Behind

One year later, the split story behind crypto's biggest crash

One year after the largest liquidation event in crypto history, the market shows signs of recovery — but only in parts. Bitcoin and ether trading depth has rebuilt beyond pre-crash levels, according to a new CoinDesk Research analysis. Smaller altcoins and overall spot trading volume, however, remain well below where they were.

On October 10, 2025, bitcoin briefly sat near $122,600 before plunging below $105,000 in a matter of hours. The collapse followed President Donald Trump's announcement of 100% tariffs on Chinese imports and triggered roughly $19 billion in liquidations of leveraged positions in a single day. Most of the damage occurred in thin Friday evening (U.S. time) trading.

To measure what has changed since, CoinDesk Research compared order book depth across major centralized exchanges (platforms where crypto is bought and sold) on four dates: January 1, 2025; October 10, 2025; January 1, 2026; and the week of October 7, 2026. Depth refers to how much money is resting as buy and sell orders near the current price — a deeper book means a large trade can be absorbed without causing a sharp price move.

Key numbers from the analysis

• Bitcoin's order book within 1% of the current price held about $11.7 million on October 7 — roughly 75% more than on crash day, up from about $9 million at the start of 2026 and $6.9 million at the start of 2025.
• Despite bitcoin being about one-third cheaper than it was before the crash, the dollar-value depth still grew. This means market makers committed more actual capital, not just cheaper coins.
• Ether's depth within 0.5% of the price more than doubled since crash day, reaching about $4.2 million. At the 1% level, it rose about 75% to roughly $5.3 million.
• Altcoin liquidity has moved in the opposite direction, with dollar depth falling steadily since early 2025.
• Weekly spot trading volume is down nearly two-thirds from the crash week, though it has roughly doubled from an August low.

What CoinDesk Research confirmed

CoinDesk Researcher Saksham Diwan said the improved depth for bitcoin and ether reflects "real capital, not a price effect." The study compared data across major centralized exchanges at four specific points in time, making the findings measurable rather than anecdotal.

The improved depth in both majors is concentrated near the current price, where market makers quote most actively. Further from the price — at the 5% mark for bitcoin — the depth of around $24 million is roughly the same as it was in January 2025.

The rebuilt order books faced an early test this week. As the market sold off, bitcoin's 1% depth fell about 12% between October 7 and October 8. Ether's tightest band thinned slightly, but orders placed further from the price actually increased.

What remains unclear

The sources do not explain why altcoin liquidity has been declining while the two largest tokens have recovered. Nor do they provide a clear reason why spot trading volume has not returned to its pre-crash peak. These gaps in the data mean the full picture of market recovery is still incomplete.

Why this split recovery matters

Deeper order books in bitcoin and ether mean these assets can absorb larger trades with less price disruption. For someone buying or selling a meaningful amount, a deep book means their trade is less likely to cause a large price swing.

The weaker liquidity in altcoins, however, leaves those markets more exposed to sharp moves. When there are fewer orders resting near the price, a single large trade can push prices up or down more than would happen in a deep market.

Sources

• CoinDesk — One year after 10/10 flash crash, bitcoin and ether liquidity have rebuilt, but altcoins still face risks