Bitcoin SUFFERS Sudden $60K Price Swing

Bitcoins and Bitcoin-themed banknotes in various designs.

Bitcoin plunged to $24,111 on Binance’s Trump family-backed trading pair, exposing vulnerabilities in niche crypto markets amid low holiday liquidity.

Story Snapshot

Isolated flash crash hit BTC/USD1 pair on December 25, 2025, dropping from $86,000 to $24,111 before rapid rebound to $87,000.
Caused by thin order book on niche pair tied to World Liberty Financial’s USD1 stablecoin, worsened by Binance’s 20% APY promotion locking up liquidity.
Major Bitcoin pairs like BTC/USDT stayed stable; no market-wide impact or liquidations occurred.
Experts dismiss manipulation claims, calling it a benign liquidity wick during Christmas low-volume hours.

Flash Crash Details

At approximately 09:15 UTC on December 24, 2025—Christmas Day in some regions—a large sell order struck Binance’s BTC/USD1 spot trading pair. The price fell from around $86,000 to $24,111, where the first significant bid appeared. Arbitrage traders quickly bought the dip, restoring the price to $87,000 within seconds. No liquidation cascade followed, distinguishing this from broader market disruptions.

Liquidity Risks Exposed

Binance’s recent 20% fixed-APY deposit promotion for USD1 drove users to swap USDT for the stablecoin, creating a 0.39% premium but draining liquidity from the BTC/USD1 order book. This niche pair, pegged to USD1 from Trump family-backed World Liberty Financial, lacked deep market-making during holiday hours. Global trading volumes dropped, amplifying the shallow order book vulnerability on the world’s largest exchange by volume.

Flash crashes like this arise from microstructure anomalies in low-depth pairs, a known risk in crypto. Past incidents occurred in thin markets, but by October 2025, major pairs like BTC/USDT boasted over $600 million in 1% depth, shielding them from repeats. Retail traders on BTC/USD1 faced slippage risks, while arbitrageurs profited from the swift correction.

Stakeholder Roles and Expert Views

Binance hosted the pair and ran the USD1 promotion to boost adoption. World Liberty Financial issued the stablecoin, gaining exposure through the listing. Solv Protocol executive Catherine Chan confirmed the liquidity-driven event, not a crash. Coin Bureau co-founder Nic Puckrin noted spot investors on major pairs remained unaffected, with confidence intact. Analyst Maartunn highlighted post-2022 depth improvements on liquid pairs.

Social media influencers like @CryptoNobler alleged manipulation, but experts refuted this due to absent liquidation data. No evidence supports malicious intent; Binance and promoters sought yields and growth. Retail traders, however, bear the brunt in power imbalances with dominant exchanges.

Broader Implications for Crypto Investors

Short-term, the wick sparked online panic but caused no sustained price effect or economic fallout. Long-term, it underscores liquidity disparities and the need for better market-making in emerging stablecoin pairs. Major pairs proved resilient, emphasizing education on pair-specific risks over unfounded conspiracies. As Bitcoin consolidates bearishly below its 21-day moving average, no further USD1 incidents reported.

Conservative investors prioritizing stability will note how promotions in niche, Trump-linked assets can backfire during thin periods, reinforcing caution against overleveraged or illiquid trades that echo past fiscal mismanagement pitfalls.