Bitcoin’s failure to surpass the $90,000 mark is evolving from a mere narrative debate into a clear reflection of underlying market mechanics.
Throughout most of 2025, the prevailing story was one of institutional adoption. The United States progressed toward establishing effective regulatory frameworks, highlighted by President Donald Trump signing the GENIUS Act, which federalized payment stablecoins.
Simultaneously, spot Bitcoin ETFs became mainstream within brokerage platforms, and the broader cryptocurrency ecosystem began trading as if it had firmly entered traditional asset class territory.
This momentum propelled Bitcoin to an unprecedented peak of $126,223 in early October.
However, on October 10th, market microstructure faltered dramatically when a sharp unwind wiped out approximately $20 billion in leveraged positions across various crypto exchanges. This event caused Bitcoin’s price to plunge by 30% from its yearly high and marked its first negative October performance in several years.
Since then, Bitcoin has steadily declined due to reduced liquidity levels, diminished trading volumes, and significant holders offloading their assets during price rebounds.
These factors largely explain why Bitcoin struggles below $90K instead of using that level as a launchpad for new highs.
The Aftermath of October 10th
The liquidation episode was pivotal because it fundamentally shifted risk tolerance among marginal liquidity providers.
In robust markets with deep liquidity pools volatility can be uncomfortable but manageable. Market makers provide substantial quotes near mid-prices; arbitrage desks keep prices aligned across venues; large trades execute without causing significant price gaps.
Post-October 10th however saw these incentives reverse. Dealers tightened risk parameters leading to markedly reduced shock absorption capacity within the market structure.
This fragility is visible through the actions of major holders. CryptoSlate previously reported ongoing selling pressure from BTC whales which has suppressed upward momentum even after deleveraging occurred.
The shift also manifests clearly in volume and depth data for Bitcoin trading activity.
Diminished Trading Activity
A November review by CoinDesk Data reveals centralized exchange volumes have fallen back to their lowest since June this year.
The combined spot and derivatives turnover on centralized platforms dropped by nearly 25% month-over-month down to $7.74 trillion — marking April’s steepest monthly decline since April 2024 ended this year’s bullish run earlier than expected.
- Spot volume: fell by over twenty percent (21%) reaching roughly $2.13 trillion
- Derivatives volume: sank around twenty-six percent (26%) settling at about $5.61 trillion
Notably, derivatives’ share shrank below three quarters (72.5%), hitting lows unseen since February 2025.
While prices can climb amid low turnover rates, the dynamics change sharply when participants need larger trade executions.
Dwindling Market Depth Signals Risk
Market depth — reflecting buy/sell interest close to mid-price — offers one stark warning sign regarding current conditions.
This exposes what some call “the trillion-dollar illusion.” While total market capitalization measures theoretical value based on current prices, true liquidity gauges how easily intentions convert into actual trades without hidden costs like slippage.
When order books are thick with predictable spreads,&&&&>amp;amp;amp;aelig;'s institutional strategies thrive—scheduled rebalancing happens smoothly while hedging avoids costly shocks.nnnnu003cpu003eConversely,u0020thinu0020orderu0020booksu0020raiseu0020transactionalu0020costs,u0020discourageu0020participation,u0020andu0020amplifynthe impactufeffof sudden shocks.uff08uff09nnnnThe latest Kaiko data reveals that aggregated two-percent market depth for BTC has decreased approximately thirty percent compared with its peak earlier this year.uff08uff09nPractically speaking,uff08uff09this means markets now struggle more significantly absorbing typical fund rebalancing flows without causing disruptive price swings.uff08uff09nA snapshot from Binance—the world's largest crypto exchange—illustrates this vividly:ufeff u003c/iufeff u003c/bufeff u003cp style=”margin-bottom:16px”>
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