Late Tuesday, Bitcoin experienced a sudden and brief price drop to $24,111 on Binance’s BTC/USD1 trading pair before rapidly rebounding above $87,000 within seconds, according to exchange records.
This unusual price movement was exclusive to the USD1 pair—a stablecoin introduced by World Liberty Financial, which is affiliated with the Trump family—and did not appear on any other major Bitcoin trading pairs. Shortly after the incident, prices returned to levels consistent with the broader market.
Such sharp “wicks” are often caused by low liquidity or potential display glitches rather than an actual market crash. Stablecoin pairs that are newer or less frequently traded tend to have fewer market makers offering competitive quotes, resulting in a shallow order book depth.
A single large sell order, liquidation event, or automated trade routed through this specific pair can quickly consume available bids and push prices far below their true value until new buy orders emerge. These distortions may also stem from temporary pricing anomalies such as widened spreads, erroneous quotes from market makers, or algorithmic trading bots reacting to irregular price prints.
The impact of these events tends to be more pronounced during periods of low activity when fewer traders are present to absorb orders and restore equilibrium. Although such wicks may appear alarming on charts at first glance, most traders interpret them as microstructure noise rather than indicators of Bitcoin’s fundamental trend.
Nevertheless, this episode underscores the risks involved in executing trades through thinly traded pairs—especially those involving stablecoins or emerging liquidity routes—which can lead to misleading price signals and increased volatility.