Bitcoin Didn’t Crash to $24K: Binance Wick on Illiquid Pair Explained

tldr; A sudden price drop of Bitcoin to $24,111 occurred on Binance’s illiquid BTC/USD1 trading pair on Christmas Day, causing panic. This was not a market-wide crash but a liquidity vacuum due to a Binance promotional campaign offering 20% APY on USD1 deposits, which drained sell-side liquidity. The price quickly corrected within seconds due to arbitrage bots. The event highlights risks in thinly traded pairs and the spread of sensational information, amidst broader market uncertainty and Bitcoin’s struggle to gain momentum.

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