Deribit’s Asia-Pacific Business Director Lin Chen recently highlighted on X that liquidity in the crypto market remains 15% to 20% lower following the “1011” crash. This decline in liquidity comes amid ongoing volatility in the U.S. stock market and the potential for a year-end rally.

### Deribit Reports 20% Liquidity Drop After “1011” Incident

Lin Chen, representing Deribit—a leading crypto derivatives exchange—stated that market liquidity has not yet recovered to pre-crash levels. The “1011” incident triggered significant market turmoil, compounded by fluctuations during the U.S. earnings season and stock market volatility.

The liquidity drain has predominantly impacted the Bitcoin (BTC) options market, an area where Deribit holds substantial influence. Chen remains cautiously optimistic, predicting market stabilization as conditions in the U.S. stock market improve, which could pave the way for a crypto rally towards the end of the year.

> “The current market liquidity is still 15%-20% lower compared to before the ‘1011’ crash. The U.S. stock market is experiencing a volatile earnings season, so most of the funds have been drained away. Fortunately, the U.S. stock market is still hitting new highs. As long as the U.S. stock market remains stable, when liquidity spreads over, I think there will still be a year-end market rally; but it’s difficult to rally in the near term, and the volatility is also high.”

### Historical Context: U.S. Market Stability Key to Crypto Recovery

Major events such as post-FOMC volatility have historically resulted in short-term liquidity drops in crypto markets. However, these periods often see subsequent recovery phases that correlate with stabilization in traditional financial markets.

### Bitcoin Market Snapshot (As of November 2, 2025)

– **Price:** $110,503.87
– **Market Cap:** Approximately $2.20 trillion
– **Dominance:** 59.44%
– **24-Hour Price Change:** +0.36%
– **7-Day Price Change:** -1.78%
(Source: CoinMarketCap)

Despite near-term challenges, the interplay between traditional market stability and crypto liquidity remains critical in shaping the outlook for major cryptocurrencies such as Bitcoin and Ethereum. Investors will be watching closely to see if the anticipated year-end rally materializes as liquidity conditions improve.
https://bitcoinethereumnews.com/crypto/deribits-lin-chen-predicts-crypto-market-rally-post-liquidity-crash/?utm_source=rss&utm_medium=rss&utm_campaign=deribits-lin-chen-predicts-crypto-market-rally-post-liquidity-crash