On Christmas Day, Bitcoin (BTC) — the world’s largest cryptocurrency — experienced a dramatic price plunge, briefly falling below the $25,000 mark. What stood out, however, was that the drop happened extremely fast and went largely unnoticed by the broader market.
According to financial analyst Jacob King, the incident occurred on Binance’s BTC/USD1 trading pair, where Bitcoin reportedly dropped by more than 70%. King described the event as a classic “flash crash”, a phenomenon in which prices collapse abruptly before rebounding within seconds.
Crucially, this sharp decline did not reflect the global Bitcoin market, but was instead an isolated event limited to Binance. Possible contributing factors include low liquidity, large sell orders, or mass liquidations of leveraged positions, potentially exacerbated by reduced trading activity during the holiday period.
After briefly touching lows around $24,000–$25,000, Bitcoin rebounded almost instantly, returning to the $87,000 range within seconds. It remains unclear whether any traders managed to buy BTC at such an unusually low price. If they did, they would be sitting on over $62,000 in unrealized profit per Bitcoin.
Meanwhile, DeFi researcher OxNobler claimed the flash crash was the result of price manipulation, alleging that insiders deliberately pushed the price down to profit from the move. However, no concrete evidence has been presented to support these accusations, and many community members have dismissed the claims as speculative and fear-inducing.
Bitcoin Price Outlook
At the time of writing, Bitcoin is trading at approximately $87,420, up 0.7% over the past 24 hours. Data from CoinMarketCap shows BTC moving within a daily range of $86,411 to $87,956, while trading volume has dropped sharply by 34.28% to $21.67 billion.
Notably, Bitcoin’s hash rate has declined by around 4%, a development often associated with miner capitulation. Historically, such periods have preceded price rebounds, as weaker mining operators exit the market, reducing selling pressure.
Despite short-term volatility, market sentiment remains optimistic that Bitcoin could make one final push toward the psychological $100,000 level before the end of 2025.
