2025-12-28 20:22:03

The crypto market is never short of dramatic moments, but true insight lies in distinguishing appearances from substance.

The holiday season in the crypto world is never calm. When Bitcoin experiences a vertical plunge from $87,600 to $24,100 on a certain trading pair, the market instantly plunges into panic. Interestingly, BNB remains stable above $840, demonstrating unexpected resilience. Behind this divergence, there are deep structural changes happening in the market.

**A False Alarm Under the Liquidity Trap**

On Wednesday evening, Bitcoin investors experienced unforgettable seconds. The price plummeted 70% in a very short time, then quickly rebounded to normal levels. It seemed like a systemic crisis, but in reality, it was far from that.

What is the truth behind this? This flash crash was essentially a liquidity crisis rather than a systemic risk. The key point is that extreme volatility was limited to a specific trading pair, while other mainstream pairs remained relatively stable. This indicates that the problem was not with Bitcoin itself, but with the market structure behind that trading pair.

As a new emerging stablecoin, USD1's trading depth is far less than that of mainstream assets like USDT. Market makers have limited support, and the order book's thickness is evident. Plus, during the holiday period, many liquidity providers are resting, making the market more fragile. At this moment, a large market sell order is enough to break through the fragile buy-side defenses and trigger a price crash.

**A Quiet Shift in Market Logic**

This event may seem accidental, but it actually reflects several important changes in the market: the emergence of new stablecoins increases market diversity, but liquidity dispersion introduces new risks; the performance differences between trading pairs are growing; and liquidity imbalance is becoming a new source of volatility.

The lesson for traders is clear—not all trading pairs are worth chasing. Sometimes, the safest choice is to stick with mainstream assets that have ample liquidity and many market makers.

BTC-3,53%

BNB-5,23%

USD1-0,03%

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MEVHunter_9000

· 2025-12-30 23:14

It's another game of the liquidity trap,真假难辨 --- USD1 can't compete with USDT, it was obvious from the start --- Holiday crypto is the easiest to have issues, liquidity withdrawal means disaster --- Exactly, not all trading pairs are playable, be careful not to get liquidated --- BNB stabilizing, what does it mean? Still need to choose mainstream options --- A 70% plunge sounds scary, but it's really just a few trading pairs acting up --- Order book depth is really crucial; if it's thin, a big order can cause a collapse --- So you still need to follow the main liquidity flow; personalized trading is too easy to get caught --- Market makers taking a break during holidays, following the trend now = courting death --- Market segmentation is becoming more and more obvious; choosing the wrong trading pair is worse than choosing the wrong coin

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LiquidityHunter

· 2025-12-28 20:46

It's USD1 again causing trouble. Every holiday, the crypto world loves to put on this kind of show. Mainstream coins are the real deal; trading pairs with small coins are too shallow. I was just wondering why BNB has no issues at all. Liquidity really is king.

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ImpermanentSage

· 2025-12-28 20:41

It's the liquidity issue again, if only USD1 was exchanged for USDT, it wouldn't be so weak.

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WalletDoomsDay

· 2025-12-28 20:41

Is it another liquidity trap? Basically, it means the trading pair is too garbage; a single large order can crash it. If you really want to make money, you should focus on mainstream pairs and not be fooled by the stories of new coins. BNB's performance during that wave was quite stable; compared to others, they are indeed fragile. Where did all the liquidity go during the holiday? Who is actually doing market making? A 70% plunge looks scary, but it's actually just paper wealth; returning to normal prices in seconds is truly speechless. However, it must be said that this kind of differentiation is becoming more and more obvious; you need to learn how to identify which pairs truly have good liquidity.

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MoonlightGamer

· 2025-12-28 20:32

Another liquidity trap, always playing out the same way. I almost got scared into selling off, but then I realized it was all about that broken USD1 trading pair.

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