The Hidden Gap Between Crypto Volume and Real Liquidity
On Oct. 10, 2025, crypto went through its largest liquidation event in history. In just 25 minutes, $19 billion in leveraged positions were wiped out. Bitcoin dropped from $126,000 to $105,000. Ethereum fell 12%. Some altcoins lost more than half their value in a single day.
What many people missed was not the price move, but what happened inside the order books.
Exchanges were still reporting massive trading volume. Yet many traders could not execute anywhere near the prices they were seeing on their screens. Depth vanished, and spreads exploded. Liquidity that normally absorbs large trades simply disappeared.
Volume showed activity. Liquidity showed reality.
The Volume Illusion
For years, the industry has used volume as…
