AMAZING : Bitcoin Flash Crash on Binance's USD1 Pair
Bitcoin did briefly trade at around $24,000 on Binance's specific BTC/USD1 trading pair on December 25, 2025, in an isolated "flash crash" event. This move was an anomaly on that specific, low-liquidity pair and did not reflect the broader market price of Bitcoin, which at the time was around $87,000 to $88,000 on major exchanges and other Binance pairs like BTC/USDT.
Key Insights
Isolated Incident: The sharp price drop was confined solely to the BTC/USD1 pair, a stablecoin backed by World Liberty Financial, and was not observed in other major Bitcoin trading pairs.
Low Liquidity: The primary cause of the flash crash was likely the thin liquidity on the newly launched USD1 pair, a condition often exacerbated during holiday periods with fewer active traders.
Technical or Large Order Trigger: A single, large market sell order, the liquidation of leveraged positions, or an automated trading bot error in the shallow order book could have triggered the price sweep to such low levels before arbitrageurs quickly corrected the price.
No Broader Impact: The incident did not trigger a wider market collapse or cause liquidation damage across other major exchanges.
Promotion Context: The event followed Binance's launch of a promotional program offering a high annual percentage yield (APY) on USD1 deposits, which caused a sudden influx of capital into the stablecoin, potentially leading to arbitrage attempts that stressed the low-liquidity pair.
