BitMEX Annual Report: How the October Crash Evaporated Crypto Liquidity
The BitMEX annual report reveals the devastating impact of the October 2025 crash on market liquidity and basis trades, warning of a more fragile trading environment.
The market's pulse skipped a beat in October, and the scars are deeper than they look. According to the latest BitMEX annual report, the October 2025 market crash didn't just drop prices—it fundamentally altered the liquidity landscape for global traders.
BitMEX Annual Report October Crash Impact on Liquidity
The report provides a forensic look at how liquidity vanished within seconds during the October rout. BitMEX highlights that the collapse of basis trades was a primary driver. This strategy, which exploits price gaps between spot and futures markets, typically provides a buffer for the market but turned into a liquidation spiral as volatility spiked.
The Fragility of Basis Trades Exposed
Arbitrageurs who once thrived on basis trades have largely exited or scaled back, leaving the market more susceptible to slippage. The BitMEX report suggests that market makers are now demanding higher premiums to provide liquidity, indicating that the 'cheap' liquidity of the pre-October era hasn't returned yet.
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