Bitcoin Plummets to $24,111: Binance Liquidity Crisis Explained
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 26 2025- Liquidity Crisis: On Christmas Day, Bitcoin briefly dropped to $24,111 on Binance's BTC/USD1 pair, while the primary BTC/USDT pair remained above $86,400, indicating that the price drop was solely due to a liquidity vacuum in a thinly traded market.
- Market Reaction: This price flash crash lasted approximately three seconds before arbitrage algorithms quickly intervened, restoring the price to around $87,000, demonstrating the market's sensitivity to liquidity events and its rapid response capabilities.
- Promotional Impact: Analysts noted that Binance's 20% APY promotion launched 24 hours prior drained sell-side liquidity from the BTC/USD1 order book as traders rushed to swap USDT for USD1 stablecoins, directly triggering the price drop.
- Psychological Effects: This incident unfolded against a backdrop of heightened uncertainty in the Bitcoin market, particularly following the severe crash on October 10, which saw a loss of over $12,000, leaving traders psychologically scarred and overly sensitive to even minor fluctuations.
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.
