BitMEX: October crash leads to record low order book depth, ending the "easy profit era" in the crypto market

BitMEX released a report on Thursday stating that the crypto market crash in October last year marked the end of the "easy profit" era in the crypto market. After the crash on October 11, which wiped out $20 billion, market makers fully withdrew liquidity in the fourth quarter, causing the order book depth to drop to its lowest level since 2022. The arbitrage strategies between the spot and futures markets became "overcrowded," with funding rates falling to 4%, and returns now lower than U.S. Treasury bonds.

The report noted that trading volume is "aggressively shifting" to high-performance on-chain perpetual contract platforms like Hyperliquid.