Bitcoin Trades Abruptly at $24,000 on Binance USD1 Pair
- Bitcoin BTC +0.18% hit $24,000 on Binance’s USD1 due to low liquidity.
- No major market impact observed.
- Binance yet to release official statements on the incident.
Bitcoin’s price briefly dropped to $24,000 on Binance’s BTC/USD1 pair due to thin order books, occurring on October 12, 2023.
This isolated incident highlights risks associated with low-liquidity trading pairs, though BTC’s overall market value remained stable.
BTC’s Sudden $24,000 Surge on Binance
Bitcoin briefly traded at $24,000 on Binance’s USD1 pair in a rapid flash movement. Such anomalies often result from thin order books or possible algorithm malfunctions, whereas other markets remained unaffected, trading at prevailing prices.
The event involved the BTC/USD1 spot pair on Binance. Binance leaders Richard Teng and Yi He have not publicly addressed the wick. No specific market makers have claimed responsibility, with details inferred from order-book behavior.
Isolated Incident with Minimal Market Impact
The incident did not impact BTC’s broader market pricing or lead to derivatives index movement, indicating its isolated nature. The sudden price dip was limited to Binance’s USD1 pair.
No regulators have commented on this Binance-specific event. Historically, similar wicks have occurred on low-liquidity pairs without triggering significant market responses. As Richard Teng, CEO of Binance, mentioned, “No formal incident report or blog from Binance addressing the BTC/USD1 wick could be located.” – Source
Lessons on Trading Illiquidity
In terms of historical precedent, Binance has experienced similar isolated events on illiquid pairs. Such instances rarely affect the broader market unless they trigger massive cross-exchange liquidations or occur on major pairs.
This incident demonstrates the risks involved in trading on low-liquidity pairs and underscores the importance of relying on high-volume pairs to prevent unexpected large price fluctuations.
