Bitcoin experienced a brief spike to $24,111 on Binance for the BTC/USD1 trading pair late Tuesday, only to rebound above $87,000 within seconds, as reported by exchange data.
This movement was not reflected in other major BTC pairs and seemed confined to USD1, a stablecoin introduced by World Liberty Financial, which is backed by the Trump family. The trading pair later stabilized, with bitcoin returning to existing market values.
Such sudden “wicks” are usually the result of low liquidity or potential display errors, rather than an overall market decline. New or lesser-known stablecoin pairs typically have fewer market makers providing tight quotes, leading to a shallower order book.
A single significant market sell, liquidation, or an automated trade routed through the pair can rapidly sweep bids, causing the price to fall far below the actual market level until buy orders resurface.
These dislocations can also occur due to temporary pricing problems related to spread widening, erroneous quotes from a market maker, or trading algorithms reacting to irregular prints.
During quieter periods, this effect can be exacerbated because fewer traders are available to absorb the order flow and bring prices back to parity.
Despite how dramatic the wick may appear on a chart, traders typically view these prints as microstructure events rather than indicators of bitcoin’s fundamental direction.
Nonetheless, it underscores the dangers of executing trades on thin pairs, especially when stablecoins or trading routes are still developing their liquidity.
