The BTC/USD1 trading pair briefly pushed the price of Bitcoin to $24,000 on the Binance platform on December 24. What happened and how is this possible?
BTC/USD1 pair plunges to $24,000
In mid-December, the Trump family’s World Liberty Financial (WLFI) project announced the official and “central” implementation of its USD1 stablecoin on the Binance platform. This was a good move for its visibility, but above all for its capitalization, which has seen one of the strongest increases in the current top 10 over the last 30 days (17.30%), according to the DefiLlama website.
This move was quickly linked to the presidential pardon granted last October to Changpeng Zhao, the iconic founder of this world-leading exchange, especially given suspicions of a previous relationship linked to the development of this stablecoin.
In any case, USD1 now fuels certain trading pairs on the Binance platform in the United States, such as the BTC/USD1 version applied to the Bitcoin price. This is clearly a very volatile market, as it caused the price of BTC to plummet from $87,600 to $24,000 on December 24.
This sudden and unlikely drop of more than 70%, completely unrelated to the reality of the Bitcoin market, did not fail to attract the attention of certain 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 and fleeting movement only affects the BTC/USD1 pair. No other trading pair involving Bitcoin experienced a similar spike over the same period. This rules out the scenario of a BTC crash in favor of a more internal issue with the Binance platform.
In such cases, significant declines of this kind generally imply insufficient liquidity in the market concerned, resulting in insufficient depth in the order book. This is all the more plausible when it concerns a recent token that is still rarely traded.
This may be due to a malfunction in the platform, such as when the spread—the price difference between the buy and sell prices—widens on an illiquid pair, which can cause abnormal price impressions without reflecting a real market variation.
In any case, this isolated event does not indicate a possible future direction for Bitcoin. At most, it fuels further speculation about the relationship between the Binance platform and the Trump family’s World Liberty Financial project.
