Bitcoin and Ether have largely rebuilt the liquidity they lost in the October 10, 2025 crash, helped by ETF and institutional flows. Altcoins have not recovered the same way, as their derivatives open interest and rally lengths remain sharply lower.
Bitcoin and Ether have largely rebuilt the liquidity they lost a year after more than $19 billion in leveraged positions were wiped out within 24 hours. The rest of the altcoin market is still waiting for its turn.
A tariff announcement triggered the 10/10 liquidations
The trigger was political, not technical. President Trump announced a 100% tariff on Chinese imports, and the news landed on a market already stacked high with leverage.
Bitcoin dropped approximately 12-17% intraday from an all-time high of around $126,000. Each forced sale pushed prices lower, which triggered the next round of forced sales.
The damage to altcoin derivatives lasted longer. Open interest in altcoins fell from approximately $70 billion before the crash to around $30 billion by mid-December 2025.
ETF flows and institutional buyers drive the rebound
The recovery since then has been lopsided. Bitcoin and Ether liquidity has rebounded, driven largely by ETF inflows and institutional buyers.
In October 2026, US spot Bitcoin ETFs pulled in $102.7 million in a single day. By early October 2026, Bitcoin was trading between $80,000 and $87,000, well below the roughly $126,000 peak from a year earlier.
Altcoins have not seen the same recovery. The median altcoin rally lasted 60 days in 2024, but in 2025 that figure shrank to roughly 19-20 days.
A market running at two speeds
According to Crypto Briefing, Bitcoin and Ether behave increasingly like institutional assets, supported by ETF demand and steadier order books. Everything else trades more like a high-beta side bet.
The reduced altcoin open interest cuts both ways. Less leverage means fewer forced sellers if prices drop sharply again, but it also means less fuel for sustained rallies.
Source: Crypto Briefing
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