- Lin Chen addresses post-“1011” crypto market liquidity issues at Deribit.
- 15%-20% market liquidity reduction.
- Potential year-end rally amid volatile conditions.
Deribit’s Asia-Pacific Business Director Lin Chen highlighted on X that post-‘1011’ crash liquidity remains 15%-20% lower, amidst U.S. stock market volatility and a potential year-end rally.
The ongoing liquidity constraints impact crypto assets like Bitcoin and Ethereum, as funds migrate, challenging near-term rally prospects amid high volatility.
Deribit Reports 20% Liquidity Drop After “1011” Incident
Lin Chen of Deribit, a leading crypto derivatives exchange, stated market liquidity remains 15%-20% lower than before the “1011” crash. This follows a period of market turmoil prompted by U.S. stock market volatility and earnings season fluctuations.
In the current environment, liquidity drain has chiefly affected the BTC options market, a sector where Deribit holds significant influence. Chen predicts market stabilization as U.S. stock conditions improve, suggesting the potential for a year-end crypto rally.
Historical Context: U.S. Market Stability Key to Crypto Recovery
Did you know? Major occurrences like the post-FOMC volatility have historically led to short-lived liquidity drops, often seeing subsequent recovery phases linked to traditional market stabilization.
As of November 2, 2025, Bitcoin (BTC) is valued at $110,503.87 with a market cap of approximately $2.20 trillion and a dominance of 59.44%. Recent price trends show a 24-hour increase of 0.36% but a weekly decrease of 1.78%, according to CoinMarketCap.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 11:01 UTC on November 2, 2025. Source: CoinMarketCapExperts suggest continued liquidity challenges could affect market recovery, though historical data indicates a potential rally if traditional market stability persists. Investors are advised to stay informed on regulatory developments and evolving market structures.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/markets/lin-chen-crypto-market-liquidity/


