On Christmas Day, Bitcoin briefly flashed down to around $24,000–$24,111 on Binance’s BTC/USD1 spot trading pair. This was a classic flash crash caused by extremely thin liquidity in that specific pair during holiday trading hours. USD1 is a relatively new stablecoin issued by World Liberty Financial backed by the Trump family, with much lower trading volume and order book depth compared with major pairs like BTC/USDT.
A large sell order or cascade of orders swept through the thin buy-side liquidity, causing a sharp downward wick on the chart. The price recovered almost instantly within seconds as arbitrage bots bought the dip and normalized it back to the global market price around $87,000–$88,000. This event was isolated to the BTC/USD1 pair and did not affect broader Bitcoin markets or major pairs; BTC/USDT on Binance or other exchanges remained stable above $86,000.
Binance (via CZ) noted no involvement in trades and no index-linked liquidations. No significant liquidations were triggered from this wick, as it didn’t impact leveraged futures pricing broadly. Events like this may prompt better price protection mechanisms or warnings for new pairs to reduce fat-finger errors and FUD. USD1 hit $3B+ market cap shortly after, showing strong adoption.
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