BTC and ETH Liquidity Recovered, Altcoins Still Face Risk Challenges

On October 10, marking the one-year anniversary of the "10-10" crypto market crash, CoinDesk reported that the underlying liquidity of Bitcoin (BTC) and Ethereum (ETH) has achieved substantial reconstruction. A full year has passed since the all-time high of over $126,000 set in 2025, and BTC currently sits at a drawdown of approximately 32%, trading steadily above $85,000.

Despite the significant recovery in trading depth and market confidence for leading assets, the liquidity networks of numerous small and mid-cap altcoins have yet to fully recover. Market analysis indicates that capital is highly concentrated in BTC and ETH, while order books for other tokens remain thin across both spot and derivatives markets. Should a new macro shock or localized leveraged liquidation occur, these coins are highly susceptible to sharp one-sided price swings.

[TechFlow]