The BTC/USD1 trading pair briefly pushed Bitcoin’s price to $24,000 on the Binance platform on December 24. What happened, and how is this possible?
The BTC/USD1 pair plunges to $24,000
Since mid-December, the Trump family’s World Liberty Financial (WLFI) project has announced the official and “central” launch of its USD1 stablecoin on the Binance platform. A smart move for its visibility, but especially for its market cap, which has seen one of the strongest increases among the current top 10 over the last 30 days (17.30%), according to the DefiLlama website.
This partnership was quickly linked to the presidential pardon granted last October to Changpeng Zhao, the iconic founder of this global exchange leader, especially given suspicions of a prior connection related to the development of this stablecoin.
In any case, USD1 now powers certain trading pairs on the Binance platform in the United States, such as the BTC/USD1 pair applied to the Bitcoin price. This is clearly a highly volatile market, as it recently caused the price of BTC to plummet from $87,600 to $24,000 on December 24.
Bitcoin drops to $24,000 on the BTCUSD1 pair
A sudden and improbable drop of over 70%, completely disconnected from the reality of the Bitcoin market, which did not fail to attract the attention of some traders on the X network, especially given the obvious risk of liquidation of open positions on this trading pair.
How can this sudden collapse be explained?
This sudden, fleeting movement affects only the BTC/USD1 pair. In fact, no other trading pair involving Bitcoin experienced a similar spike during the same period. This rules out the scenario of a BTC crash in favor of an issue more internal to the Binance platform.
In such cases, significant drops of this nature generally indicate insufficient liquidity in the relevant market, leading to insufficient depth in the order book. This is all the more plausible when it involves a recent token that is still rarely traded.
This may stem from a platform malfunction, such as when the spread—the price difference between buy and sell orders—widened on an illiquid pair, which can cause anomalous price readings that do not reflect actual market movements.
In any case, this isolated event in no way indicates a possible future direction for Bitcoin. At most, it fuels new speculation regarding the relationship between the Binance platform and the Trump family’s World Liberty Financial project.
