The post Bitcoin Didn’t Crash to $24K: Here’s What Really Happened on Christmas appeared on BitcoinEthereumNews.com.

Bitcoin’s $24K drop was caused by a brief issue on an illiquid trading pair. The BTC/USDT market remained unaffected. On Christmas Day, rumors spread that Bitcoin had crashed to $24,000. However, this “crash” was a result of a temporary issue on a single Binance trading pair, not a widespread market collapse. The panic was caused by a brief, illiquid price movement on BTC/USD1. The actual Bitcoin market remained largely unaffected by this short-term event. The Illiquid Trading Pair and the Price Drop The incident occurred on the BTC/USD1 pair, which had low liquidity compared to other Bitcoin trading pairs. The price of Bitcoin briefly dropped by 72% to $24,111, but only for about three seconds. During the same period, the BTC/USDT pair, where most Bitcoin trading happens, remained stable above $86,400. This price drop was isolated to a specific pair, not the broader market. 🚨 BITCOIN DIDN’T CRASH TO $24K You got played by a screenshot. Here’s what actually happened while crypto Twitter lost its mind on Christmas: A single illiquid trading pair on Binance … BTC/USD1 wicked down 72% for approximately 3 seconds. Meanwhile, BTC/USDT (where 99% of… https://t.co/iy8rB1CHCH pic.twitter.com/frNfVd6AVN — Shanaka Anslem Perera ⚡ (@shanaka86) December 26, 2025 The main cause of the price drop was the lack of liquidity on the BTC/USD1 pair. Traders rushed to swap USDT for USD1 to take advantage of a promotional offer for 20% APY on deposits. This drained the liquidity on the sell-side of the BTC/USD1 pair. As a result, when a large market sell order occurred, it caused the price to fall sharply for a brief moment. Related Reading: Binance’s Bitcoin Price Drop and Recovery on Christmas Day Arbitrage Bots and the Rapid Recovery Once the price collapsed, arbitrage bots moved in quickly to restore equilibrium. These bots capitalized on…

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Filed under: News - @ December 27, 2025 4:17 am