Yesterday afternoon, I was watching the market when I hadn't even finished my coffee, and suddenly the screen flashed red — BTC suddenly jumped to $24,000 on a small trading pair. The group chat exploded instantly with all kinds of voices: "Crash?" "Main players running?" "Is the bull market ending?" My palms started sweating too.

But I didn’t rush to follow the crowd’s discussion. Instead, I opened the on-chain monitoring tools. Ten seconds later, I took a deep breath and typed in the group: "Don’t panic, this isn’t a crash, it’s a human-made incident."

**Where did that strange spike come from**

Later, everyone gradually figured it out — a major exchange launched a stablecoin deposit promotion with an annualized interest rate of 20%, limited to 50,000 U. Sounds tempting, right? But this promotion triggered the entire chain reaction.

The on-chain data told the story very clearly. First, the stablecoin was bought up instantly. The USD1 price deviated by 0.39%, which is almost unheard of in normal times. The stablecoin health indicator immediately triggered a yellow warning. Under normal market conditions, such volatility wouldn’t happen.

Second, smart money moved quickly. They borrowed stablecoins through VIP channels and sold them to retail investors rushing for the promotion. Large loan data on the chain surged abnormally, and the monitoring tools caught all of this.

Third, and most crucial — liquidity was drained. Arbitrageurs kept placing orders, making the order book for the BTC trading pair particularly thin. This liquidity pressure, combined with panic sentiment, caused the needle to prick.

**How on-chain data reveals the story**

What’s interesting about this event is that if you only look at candlestick charts and market news apps, you wouldn’t notice anything. But the on-chain monitoring tools illuminate the entire chain of events — from stablecoin premiums, large abnormal loans, to liquidity changes, every step is backed by data.

Any deviation in stablecoins is a sign of market imbalance. When deviations as small as 0.39% can be precisely detected, the real big risks have already started to show signs. Loan data is the same — smart money always leaves traces before acting, as long as you know how to read the data.

**In conclusion**

This kind of incident isn’t rare; similar scenes play out every day in the market. The difference is that some react emotionally, while others make decisions based on data. The former get pierced all over, while the latter have already identified the risk.

Next time you see such strange market movements, instead of blindly discussing in the group, open your on-chain data tools and check key indicators like stablecoins, loans, and liquidity. The truth is often hidden in these cold, hard numbers.