On late Wednesday, Bitcoin experienced a brief, dramatic fluctuation, hitting a price of $24,111 on the BTC/USD1 pair on Binance before quickly rebounding above $87,000. This unusual event was unique to the USD1 trading pair, linked to World Liberty Financial, which is backed by the Trump family.
Such sharp price movements are often attributed to low liquidity or technical glitches rather than significant market changes. New stablecoin pairs like USD1 may not have enough market makers, resulting in a shallow order book. Consequently, a large sell order or automated trading can lead to substantial price discrepancies until normal trading resumes.
Traders typically regard these anomalies as microstructure phenomena rather than indicators of Bitcoin's overall trend. The incident underscores the potential risks of trading in pairs with limited liquidity, especially for stablecoins still developing their market presence.