Low-Liquidity Conditions Trigger a Price Anomaly in Binance BTC/USD1 Pair

In Brief

• Allegations surfaced that Binance insiders deliberately dumped Bitcoin on Christmas.
• The incident has intensified claims that Bitcoin price has been manipulated.
• Binance’s history of regulatory scrutiny has led to stricter measures.

Shedrach Kongvong 2025-12-26

There have been allegations of Binance market manipulation, and one liquidity event has triggered fresh allegations. Analysts have accused an insider on the platform of crashing the price of Bitcoin against president Donald Trump’s USD1 stablecoin to make a huge profit.

According to information shared on X, the price of Bitcoin crashed briefly to $24,000 by alleged insider dumping the coin. Analysts claim the crash was intended to liquidate longs on the coin to turn a huge profit. This is not the first time Binance has been accused of manipulating markets, but this case stands out with the unprecedented crash.

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Manipulation Blamed for Bitcoin’s Weak Performance

Bitcoin was cripped by the flash crash of October this year, from which it has not successfully recovered yet. At the time of the crash, analysts blamed the Chinese tariff announcement by president Donald Trump, a claim that analysts have refuted. The next allegation was that of internal manipulation, especially on Binance.

Since then, Bitcoin has struggled to gain any serious recovery, mostly just trading within a tight range. Analysts have said that the asset shouldn’t be in such a state considering that every positive development required for a rally has been in place. The recent rally of gold has also exposed the unexplained Bitcoin weakness, leaving analysts with just one reasonable explanation – manipulation.

As is with the case of this latest incident on Binance, whales are known to manipulate the market by buying and dumping assets to liquidate longs or shorts in exchange for profit. Binance is reputed as one of the centralized crypto exchanges with the highest liquidity and trading volume, making it prone to such manipulations.

Binance Faces Different Allegations

While Binance offers an excellent platform for trading crypto assets with high liquidity, the exchange’s popularity has also put it in trouble. Regulators have targeted it for alleged facilitation of illegal money flow, for which its co-founder and former CEO Changpeng Zhao was sent t jail.

As a result, the platform has put some measures in place to repair its reputation, one of which is the bounty it placed on fake listing agents who extort money from innocent project founders in exchange for guaranteed listings which the platform says does not exist.