Bitcoin’s Trading Pair Flashes Down to $24,000 on Binance: Why You Need to be Careful

The BTC/USD1 trading pair on Binance experienced a brief flash crash, plunging to $24,000 before rapidly recovering to above $87,000. This incident, which did not affect major pairs like BTC/USDT, exposed the liquidity risks associated with newly launched pairs, specifically BTC/USD1, which uses the USD1 stablecoin backed by World Liberty Financial.

Observers suggested the crash, occurring during low holiday trading volume, was linked to arbitrage attempts stemming from a Binance promotional campaign for USD1, which saw a massive supply surge. When traders attempted to sell borrowed USD1 via the thin BTC/USD1 market, the low liquidity caused the sharp price dislocation.

Experts noted that such volatility is more common in bear markets when capital inflows weaken. However, analysts confirmed that a similar event on the highly liquid BTC/USDT pair is unlikely due to significantly deeper market depth and higher trading volumes, serving as a caution for traders to select pairs carefully.

(Source：BeInCrypto)