In the wake of South Korea’s martial law declaration, significant market movements were observed on the Upbit exchange as large traders moved large amounts of Tether’s USDT stablecoin. This activity points to potential “bottom-fishing” strategies where investors aimed to capitalize on discounted cryptocurrency prices following the sudden price drop in Bitcoin (BTC) and other digital assets.
USDT Influx Indicates Increased Market Activity
According to blockchain analysis by Lookonchain, over $163 million in USDT was transferred to Upbit within just one hour of the announcement by President Yoon Suk Yeol. This was a clear sign of large traders—often referred to as “whales”—seizing the opportunity to purchase cryptocurrencies at a discounted price. The sudden influx of USDT, the most widely used dollar-pegged stablecoin, suggests that these traders were looking to capitalize on the market dip and take advantage of the price drop after the political unrest in South Korea.
Bitcoin Flash Crash and Quick Recovery on Upbit
Bitcoin (BTC) saw a dramatic price plunge, dropping to as low as $63,000 on Upbit shortly after the martial law was declared. However, the leading cryptocurrency has since rebounded and is trading near $94,000. Despite the recovery, Bitcoin remains priced slightly lower than its global average of $95,800. This price discrepancy highlights the volatility present in the South Korean market, influenced by the political situation.
The Impact of Political Events on Crypto Markets
The martial law declaration and the subsequent flash crash underscored the volatility of crypto markets, particularly in regions with high trading volumes like South Korea. The political turbulence raised concerns about the potential for censorship and crackdowns, which may have spurred more investors to seek out assets like Bitcoin, seen as a hedge against such risks.
In the aftermath, large crypto investors have shown a strong interest in taking advantage of price fluctuations, making substantial moves to purchase cryptocurrencies at lower prices. This “bottom-fishing” behavior could further affect the market as traders continue to react to global and local events.
