Analysis: The Binance BTC/USD trading pair plummeted to $24,000 yesterday, possibly due to insufficient liquidity

According to market news, on Wednesday at 5 PM, the price of Bitcoin in the Binance BTC/USD1 trading pair briefly plummeted to $24,111, before quickly recovering to above $87,000.

This anomaly only occurred in the new stablecoin USD1 trading pair supported by World Liberty Financial, while other BTC trading pairs were unaffected, and the overall market price remained stable. Analysis indicates that such "flash crashes" are usually related to insufficient liquidity, especially in newly launched or low-volume stablecoin trading pairs. Due to limited order book depth, a single large sell order or automated trading can cause significant price fluctuations in an instant. Previously, it was reported that the Binance BTC/USD1 trading pair had briefly spiked to $24,111 yesterday, with the price quickly correcting.