Bitcoin (BTC), the leading cryptocurrency, saw a staggering drop below $25,000 on Christmas day. As highlighted According to financial analyst Jacob King, this drop occurred in the Binance BTC/USD1 trading pair.
What Triggered Bitcoin’s Sudden Crash?
According to King, the crash was a “flash crash,” meaning it happened suddenly, and very few users noticed it before it recovered. Notably, this drop, which exceeded 70%, occurred only on the Binance exchange, not the entire cryptocurrency market.
For perspective, the incident does not mean that Bitcoin crashed worldwide, but rather that it was an isolated case on Binance. It could have been caused by low liquidity, large sell orders, or liquidations of leveraged positions. These conditions may have been a result of there being fewer traders on the exchange at the time.
However, the drop below $25,000 did not last more than a few seconds before recovering to $87,000. It is unclear whether traders were able to quickly purchase the coin at such a ridiculously low price before it recovered.
Any purchase of Bitcoin on Binance during the dip would automatically give the investor over $62,000 per Bitcoin in unrealized profits.
Meanwhile, commenting on the same sudden failure, DeFi researcher OxNobler reclaimed that the fall was the result of manipulation. He alleged that insiders went all out and quickly lowered the price to $24,000 to make a staggering profit.
Despite its claims of an inside job, OxNobler did not provide any concrete evidence to substantiate its accusations. Many in the community have dismissed his accusation as a mere fabrication meant to create panic in the space.
Bitcoin Price Outlook
At press time, Bitcoin is change hands at $87,420.41, representing an increase of 0.7% in the last 24 hours.
Data from CoinMarketCap shows that the coin has remained between a low of $86,411.80 and a high of $87,956.88 during this period. However, the trading volume remains low, a significant 34.28%, at $21.67 billion.
The slight price rally comes as the hash rate decreased by approximately 4%. History reveals that miners’ capitulation has often preceded the currency’s price rally. This occurs when weaker traders leave the scene, leading to a reduction in selling pressure in the market.
There is still optimism that Bitcoin can create one Last push for the psychological $100,000. price level before the end of 2025.
