Crypto Struggles To Recover After Massive October Selloff

Six months after the October 2025 crash, the crypto market has still not regained its balance. Behind the apparent calm, scars remain visible. The question is no longer whether the storm has passed, but what it has truly left behind. Between structural fragility and absence of clear momentum, the crypto ecosystem seems to be evolving on a much more unstable ground than it appears.

A flash crash with immediate consequences

On October 10, 2025, the crypto market was hit by an extraordinarily intense panic move, triggered by a massive liquidation of leveraged positions. Within hours, the market structure wavered, causing a brutal price drop across all cryptos.

This situation immediately raised concerns about the stability of market mechanisms, with some observers pointing to anomalies in price formation and the role of institutional players.

Following this drop, several factors were put forward to explain the scale of the phenomenon. The rapid deleveraging of speculative positions, notably in decentralized finance, accelerated the downward spiral.

Thus, the sudden drying up of liquidity amplified every move, revealing a strong dependence on certain liquidity providers. This context fueled suspicions around the market’s internal functioning and the resilience of its infrastructures.

The reported facts illustrate the magnitude of the shock :

• 19 billion dollars in leveraged positions were liquidated within hours ;
• Altcoins recorded losses between 40 % and 80 % ;
• Suspicions of disappearance of some market makers ;
• Manipulation accusations targeted major platforms.

A market weakened despite apparent calm

Six months later, indicators show a market far from having regained its pre-crash strength. The order book depth on bitcoin fell from 180 to 260 million dollars in September 2025 to about 130 million today, a contraction close to 50 %.

The phenomenon reached a critical point in February 2026, with liquidity below 60 million dollars for nearly ten days. Meanwhile, derivatives volumes fluctuate between 40 and 130 billion dollars, well below the 200 billion observed in 2025. This situation reflects a clear decline in trader activity and engagement.

Current data also shows a lack of clear direction. Demand for long leveraged positions remains low, while the balance between buyers and sellers prevails.

The market operates in a waiting zone, without a marked upward momentum or a clear capitulation. This setup highlights that today’s observed fragility does not result only from the past crash, but from current market conditions marked by reduced participation and still hesitant confidence.

In the long term, this liquidity loss could weigh on the market’s ability to absorb new shocks or support a sustainable recovery. A less liquid environment tends to amplify volatility and slow institutional capital inflow. The evolution of volumes and leverage in the coming months will be crucial to determine whether the market begins a rebuilding phase or settles into a more uncertain cycle.