- Main event: Bitcoin’s brief dip to $24K due to low liquidity on Binance.
- No broader market impact observed following the quick rebalance to $87K.
- Arbitrage traders played a crucial role in the rapid price correction.
Bitcoin experienced a brief crash to $24,111 on Binance’s BTC/USD1 pair on December 24-25, 2025, before rebounding to around $87,000 due to thin holiday trading volume.
Despite initial panic, the incident had no broader market impact, showcasing the resilience of arbitrage traders in correcting price anomalies swiftly and effectively.
Bitcoin experienced a brief flash crash, dropping to $24,111 on Binance’s BTC/USD1 pair. This occurred during low holiday trading volumes, leading to thin liquidity but quickly rebounded to around $87,000. The incident saw no broader market impact.
The sudden price dip was isolated to Binance and involved USD1, a US dollar-pegged stablecoin launched by World Liberty Financial in March 2025. Changpeng Zhao, Binance’s founder, highlighted that such volatility is typical in new pairs with low liquidity.
Following the short-lived drop, Bitcoin’s overall market stability remained intact. The flash crash had no effect on other pairs or assets such as ETH, with BTC maintaining a price range around $87,000-$87,469.
Community reactions initially sparked concern across social media, but users quickly dismissed market manipulation claims due to lack of evidence. Arbitrage traders received commendations for swiftly correcting the prices, underscoring their crucial role. Bitcoin price dips to $24,000, as reported by BeInCrypto.
Historically, similar flash crashes due to thin liquidity are not uncommon in low-volume pairs, especially during holiday periods. They often resolve quickly with no systemic impact, as demonstrated by the market’s rapid recovery this time.
Low liquidity on new pairs means one large market order can spike prices, but arbitrageurs quickly corrected it. No liquidations occurred, as this pair isn’t included in any index. — Changpeng “CZ” Zhao, Founder, Binance
