Christmas Eve Horror, Binance BTC/USD1 dips to 24K

While most traders around the world are immersed in the peaceful holiday atmosphere of Christmas, the cryptocurrency market staged a heart-stopping “flash crash” on Christmas Eve. On the evening of December 24, a specific trading pair on Binance—BTC/USD1—plummeted from 87K to 24K within seconds, a drop of up to 72%, sparking widespread discussion and heightened concern over the liquidity of emerging stablecoins.

Binance BTC/USD1 Mysterious “Single Needle Drop”

According to on-chain data and exchange K-line charts, while most traders worldwide are enjoying the calm of Christmas, the price of BTC/USD1 on Binance fell like a guillotine. Interestingly, at the same time, the mainstream trading pairs BTC/USDT and BTC/USDC remained stably above $87,000. This indicates that the disaster was confined to the specific pool linked to “USD1,” with the price quickly rebounding after hitting 24K, leaving a very long and mysterious “lower shadow” (commonly known as a single needle) on the K-line chart.

Trump Family-Backed USD1 Stablecoin

The core of this incident revolves around USD1, a native stablecoin issued by the crypto financial platform World Liberty Financial (WLF), supported by the Trump family.

(Trump WLFI partners with custodian BitGo to launch institutional-grade stablecoin USD1: Strengthening on-chain dollar dominance)

This stablecoin aims to promote the adoption of decentralized finance (DeFi) by pegging 1:1 with the US dollar, and leveraging the political influence of the Trump family to attract traditional financial capital into the crypto market.

Since USD1 is only officially launched in March 2025, its current market cap is about $3.1 billion. Compared to established stablecoins like USDT or USDC, its market depth and liquidity providers (LPs) are still in the early stages of development.

Why Did the “Christmas Flash Crash” Occur? Binance High-Yield Promotions and Low Liquidity During Christmas Are Main Factors

This flash crash was limited to the BTC/USD1 trading pair; other major pairs such as BTC/USDT and BTC/USDC were unaffected. The global Bitcoin price remained stable, with no widespread sell-offs or systemic collapse.

Binance recently launched a high-yield deposit promotion for USD1, offering an annualized fixed yield of up to 20%, attracting many users to swap USDT for USD1 and deposit into financial products.

During the Christmas holiday, large market makers mostly reduced operations or took a break. In emerging trading pairs like USD1, buy and sell orders are inherently thin, so large sell orders can cause the price to spiral out of control due to lack of support.

It’s Not a Bitcoin Fundamental Issue, but Liquidity Risks Still Need Attention

Some in the community have accused it of “manipulation” or “whales shorting,” but most analyses see this as a microstructure event typical of low-liquidity markets, similar to past flash crashes in crypto markets. There is no evidence of systemic manipulation, and Binance has not officially responded.

This “Christmas flash crash” serves as a reminder to investors that even as Bitcoin gradually enters mainstream Wall Street markets by 2025, the market structure’s vulnerabilities still exist. For emerging assets like USD1, investors should be aware of the liquidity risks behind the political benefits they seek.

This article “Christmas Night Horror, Binance BTC/USD1 Single Needle Drop to 24K” first appeared on Chain News ABMedia.