Mike Novogratz reports 30% crypto market makers wiped out after October crash, impacting liquidity.Mike Novogratz reports 30% crypto market makers wiped out after October crash, impacting liquidity.

Mike Novogratz: 30% of Crypto Market Makers Wiped Out

What to Know:
  • 30% of crypto market makers wiped out, Novogratz reports.
  • Major liquidity issues impact BTC and ETH.
  • Shift from crypto to tech sectors noted.

On October 10, 2025, Galaxy Digital CEO Mike Novogratz announced that 30% of crypto market makers were wiped out due to a major market crash.

This significant loss impacts market liquidity and confidence, especially for Bitcoin and Ethereum, as institutional selling pressures increase and on-chain data shifts.

Mike Novogratz, CEO of Galaxy Digital, revealed on Twitter that nearly 30% of crypto market makers were eliminated after the October 10, 2025 crash.

This event emphasizes ongoing vulnerabilities in crypto liquidity, affecting market confidence and influencing investments.

30% Market Makers Eliminated Post-2025 Crash

The crash on October 10, 2025, led to a dramatic decline in market makers, as Mike Novogratz reported a near one-third elimination. This significant shift affected major cryptocurrencies like Bitcoin and Ethereum. Novogratz’s insights underscore the market volatility and risk exposures faced by these liquidity providers.

Galaxy Digital, under Novogratz’s leadership, noted substantial market impacts, observing a fallout that affected liquidity across the crypto landscape. The event highlighted the delicate balance in crypto markets and the consequences of such abrupt changes in trading environments.

Liquidity Challenges Emerge After Market Maker Exits

The reduction in crypto market makers led to liquidity challenges, affecting Bitcoin and Ethereum price stability. Institutional investors showed cautiousness, driven by these liquidity concerns. The drop resulted in significant outflows from US BTC ETFs, with $137 million moved in one day.

The crash also triggered a redistribution of Bitcoin holdings, signaling a move from long-term investors to more liquid market participants. This shift suggests a changing landscape in crypto investment strategies and market maturity.

Repeating Patterns: 2018 and 2025 Market Turmoil

Parallels can be drawn to the 2018 downturn where 90-98% value loss in crypto occurred, causing market maker failures. Such events illustrate recurring patterns of significant impact during market stress periods.

Given the historical context and present data, future crypto markets may focus on improved liquidity management and safeguarding against rapid market shifts. Galaxy Digital continues to project Bitcoin growth despite recent declines, with adjusted forecasts reflective of these challenging conditions.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
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