On Christmas Day, Bitcoin briefly dropped to $24,111 on a major exchange before rebounding. But what exactly happened behind the scenes? Most people are still staring at the candlestick charts in confusion, but what they should really focus on is the flow of funds.

A sharp sell-off in a short period is evidenced on-chain and in the order book. Don’t just look at the price—check out those hidden limit orders and the depth of transactions, and you'll understand.

Here's a key point: when funds transfer in a highly coordinated manner, especially when liquidity is already limited, the price doesn’t need to crash deeply to create chaos. Someone placed a very deep limit order, but the actual transaction price still fell below $25,000. This kind of operation always ends with one outcome—someone gets heavily liquidated, and the market simply can't withstand this shock.

Don’t misunderstand—this doesn’t mean spot trading only lasted a few minutes and then disappeared. It means someone was heavily hit during this volatility, and the market’s capacity to absorb this order was far from enough. Liquidity black holes can sometimes appear so suddenly.

If you don’t pay attention to these details, many people might still be confused to this day.