BITCOIN'S INSTANTANEOUS COLLAPSE: LOW LIQUIDITY DROVE THE PRICE DOWN WITH A SINGLE ORDER
In the BTC/USD1 pair trading on Binance, the price of Bitcoin dropped to $24,111 within seconds and quickly returned to normal. It was determined that the incident was caused by a single large sell order due to low liquidity in the newly opened pair. Chain data and order book analyses showed that a user's significant BTC sale momentarily pushed the price down to the $24,000 range. Binance founder Changpeng Zhao (CZ) confirmed that a single large order in new pairs with low liquidity can excessively move the price (Zhao, 2025). Similar sudden price deviations have been reported in low-volume markets before.
As a result, this incident highlighted once again how critical low liquidity is for market stability.