On December 24, 2025, a sharp decline in the price of Bitcoin was recorded on the cryptocurrency exchange Binance against the stablecoin USD1. The price of Bitcoin momentarily fell to $24,111, after which it rapidly recovered to its previous level.
This is reported by Business • Media
Reasons for the Drop and Market Reaction
The incident occurred only in the BTC/USD1 pair, which analysts believe may be related to low liquidity during the holiday period. Unlike other trading pairs, similar fluctuations were not observed. One potential reason for the drop is the execution of a large sell order, liquidation of positions, or automated trading of a significant volume of the asset. Such events are often viewed by the community as short-term spikes rather than signs of a market trend change.
“A large asset sale, liquidation, or automated trade can lead to the formation of such a wick. However, it is often regarded in the community as a minor event rather than a general trend direction.”
According to TradingView, the drop was recorded only in this pair. Representatives from Binance and the issuer of the USD1 stablecoin, World Liberty Financial, have not yet commented on the situation.
Impact of Binance’s Promotion and Subsequent Stabilization
A user under the nickname punk2898 expressed the opinion that the sharp price movement may have been triggered by the launch of Binance’s promotional offer. On December 24, the platform announced an increased yield on USD1 deposits in the Earn program—up to 20% per annum, but with a limit of $50,000. This stimulated demand for USD1, leading to a 0.39% increase in the stablecoin’s price and activation of loans through VIP Lending.
Subsequently, one trader likely decided to liquidate part of their Bitcoins, exchanging them for USD1 for further sale of the stablecoins. Due to low liquidity, the order was instantly executed at market price, which caused the short-term price drop.
After the incident, the market situation quickly stabilized, and the current price of Bitcoin against USD1 stands at $87,612.
It is worth noting that USD1 is a stablecoin issued by World Liberty Financial, which is linked to U.S. President Donald Trump. The asset began trading on Binance at the end of May 2025, and on Binance.US in October of the same year. The inclusion of USD1 in the listing has already sparked discussions regarding the possible political implications of this event.
