Bitcoin Flash Crash: $24K Plunge and $87K Recovery Explained
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 25 2025- Flash Crash Event: Bitcoin temporarily plunged to $24,111 on Binance's BTC/USD1 trading pair before rapidly recovering to $87,880, highlighting vulnerabilities in market structure and the critical importance of liquidity.
- Liquidity Risk: The crash occurred on the relatively obscure USD1 stablecoin trading pair, where limited liquidity allowed large sell orders to trigger cascading effects, exacerbating price volatility.
- Market Lessons: This incident serves as a reminder for investors that thinly-traded pairs can amplify price movements, and that different trading pairs operate under distinct mechanics, necessitating careful selection to mitigate risks.
- Investment Strategy: Investors are advised to use limit orders during expected volatility, avoid low-liquidity trading pairs, and monitor multiple platforms for price dynamics to better prepare for potential market shocks.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
