Bitcoin Experiences Brief Flash Crash to $24,111 on Binance's USD1 Pair
Bitcoin on Binance's BTC/USD1 trading pair briefly dropped to about $24,111 before rapidly rebounding to around $87,000 within seconds. This sharp flash crash was isolated to the USD1 pair, a stablecoin launched by World Liberty Financial, and did not affect the BTC/USDT pair, which remained stable and resumed normal trading after the incident.
The event occurred during non-peak hours when market makers typically reduce activity, allowing large orders to sweep through an order book with thinning liquidity and diminished depth, creating what has been described as a 'flash wick.' The rapid price reversal indicates that there was no broader market move, as trading volume was low and there was no sustained rally.
Analyst Nic Puckrin of The Coin Bureau warned against excessive leverage in markets where liquidity is fluctuating amid uncertain geopolitical conditions. Possible causes for the dislocation include faulty quotes or trading bot reactions leading to temporary pricing issues. Experts note that for a genuine rally, sustained buying and higher trading volume would be necessary.
From a technical perspective, Bitcoin was trading around $87,700 at the time, down from an October peak above $126,000, and appears to be consolidating within a descending triangle pattern below the 21-day moving average.
