What Exchange Liquidity Reveals Under Stress
🔥 Key Takeaways
- Crypto’s largest liquidation event in history occurred on Oct. 10, 2025, with $19 billion in leveraged positions wiped out in 25 minutes.
- Bitcoin and Ethereum prices plummeted, while some altcoins lost over half their value in a single day.
- Exchange liquidity played a crucial role in the crash, revealing underlying market stress.
The Great Crypto Crash of 2025: A Liquidity Crisis
On Oct. 10, 2025, the cryptocurrency market experienced its largest liquidation event in history. In a mere 25 minutes, $19 billion in leveraged positions were wiped out, causing a ripple effect throughout the market. Bitcoin’s price dropped from $126,000 to $105,000, while Ethereum fell by 12%. Some altcoins lost more than half their value in a single day. While many focused on the price movements, the real story lies in what exchange liquidity revealed under stress.
Liquidity: The Unseen Force Behind Market Volatility
Liquidity is the lifeblood of any market, enabling the smooth execution of trades and maintaining price stability. In times of stress, however, liquidity can become a double-edged sword. As prices began to drop, exchanges struggled to maintain adequate liquidity, exacerbating the downward
Read Also Epochs
