One year after a significant market event on October 10, 2025, Bitcoin and Ether have rebuilt their order book depth, indicating increased market stability. However, liquidity for smaller tokens, or altcoins, has declined, according to CoinDesk Research.
Key takeaways
- Bitcoin's order book depth within 1% of its price is approximately 75% higher than on October 10, 2025.
- Ether's order book depth within 0.5% of its price has more than doubled since the crash day.
- Altcoin dollar depth has steadily fallen since early 2025, despite a recovery in token-denominated depth.
- Weekly spot trading volume across centralized exchanges is nearly two-thirds lower than during the crash week in October 2025.
- The market's recovery in liquidity is concentrated in Bitcoin and Ether, reflecting renewed capital commitment from market makers.
A Split Recovery in Market Liquidity
On October 10, 2025, Bitcoin experienced a sharp decline, falling below $105,000 from $122,600 within hours, following an announcement of 100% tariffs on Chinese imports by President Donald Trump. This event led to over $19 billion in leveraged positions being liquidated. A year later, market liquidity, which refers to the ease with which an asset can be converted into cash without affecting its price, shows a divergent trend. Bitcoin and Ether have seen their order books deepen, indicating a more robust market structure, while altcoins have not followed this trend.
CoinDesk Research analyzed market depth on major centralized exchanges on January 1, 2025; October 10, 2025; January 1, 2026; and the current week. Market depth measures the value of buy and sell orders near the current price. A deeper order book suggests that larger trades can be absorbed with less price impact.
Bitcoin and Ether See Significant Depth Increases
Bitcoin's order book is now deeper than at any of the measured earlier dates. On October 7, approximately $11.7 million was available within 1% of Bitcoin's price. This represents an increase of about 75% compared to the crash day a year prior, and is up from approximately $9 million at the start of 2026 and $6.9 million at the start of 2025.
This increase in dollar-denominated depth is not merely a price effect. Bitcoin is about one-third cheaper than before the crash, meaning the deeper book reflects more capital committed by market makers. Most of this improvement is concentrated near the current price, where market makers are most active. Further out, at 5% from the price, the depth of around $24 million is similar to levels seen in January 2025.
Ether's recovery is even more pronounced. Its depth within 0.5% of the price has more than doubled since the crash day, reaching about $4.2 million. At 1% from the price, it has increased by roughly three-quarters to about $5.3 million, surpassing both January 2025 and 2026 readings. CoinDesk Researcher Saksham Diwan noted that "The majors' deepening is real capital, not a price effect."
Altcoin Liquidity Declines, Spot Trading Stagnates
In contrast to Bitcoin and Ether, altcoin liquidity has moved in the opposite direction. CoinDesk Research's basket of altcoins shows that dollar depth was highest on January 1, 2025, and has consistently decreased since then. Depth at 5% from the price has fallen by about a third since early 2025, to approximately $2 million. Closer to the price, at 1%, it has decreased by about a sixth.
While altcoin depth measured in tokens appears healthier, analysts suggest this is primarily due to falling token prices, masking a steady erosion of committed capital. Spot trading volume on centralized exchanges also remains subdued. Weekly spot volume averaged around $279 billion over the four weeks leading up to September 27, which is nearly two-thirds below the $801 billion traded during the crash week in October 2025. Although activity has doubled from an August low of approximately $135 billion, it is still significantly lower than pre-crash levels.
What This Means for Holders
For Bitcoin and Ether holders, the increased market depth signifies greater resilience to large buy or sell orders. This means that significant capital movements are less likely to cause drastic price swings, contributing to a more stable trading environment. The commitment of more capital by market makers suggests a renewed confidence in these major cryptocurrencies, which can be a positive indicator for long-term holders.
Conversely, the declining liquidity in altcoins suggests that these markets are more susceptible to volatility. Large trades in altcoins could lead to more significant price movements due to thinner order books. This divergence highlights a flight of capital towards more established assets, potentially indicating a maturing market where institutional interest and capital are increasingly focused on Bitcoin and Ether. As Joshua de Vos, Research lead at CoinDesk, stated, "Market makers have returned to majors, with liquidity above pre-crash levels, whilst altcoin liquidity continues to trend down as a whole."
Outlook and What to Monitor
The current trend suggests that the divergence in liquidity between major cryptocurrencies and altcoins may persist. Market makers are showing a clear preference for Bitcoin and Ether, indicating that these assets are perceived as more stable and attractive for capital deployment. This could mean that Bitcoin and Ether continue to dominate institutional interest and trading volumes in the near future.
Holders should monitor ongoing market depth reports and trading volumes to gauge the continued health of these markets. While Bitcoin and Ether show signs of robust recovery in liquidity, the altcoin market faces ongoing challenges in attracting and retaining market maker capital. This situation underscores the importance of understanding the underlying market structure beyond just price movements, especially when considering exposure to different digital assets.