During the record $19 billion liquidation event in October 2025, Bitcoin and Ethereum experienced steep declines while many altcoins lost more than half their value. Despite high reported trading volumes, liquidity on exchanges collapsed, with order book depth vanishing and spreads widening dramatically, exposing the illusion of volume as a liquidity measure. This event highlighted the importance of reliable liquidity metrics, such as executable depth, spread stability, and slippage, over mere volume, urging traders to focus on venues with proven market maker commitment and verifiable capital reserves.

#BTC #ETH