Following the declaration of emergency martial law in South Korea, there was a noticeable increase in the movement of Tether (USDT) into the Upbit exchange, suggesting that large traders, or “whales,” were taking advantage of Bitcoin’s flash crash. These investors appear to be seizing an opportunity to purchase cryptocurrencies at a discount, indicating a classic bottom-fishing approach.
Surge in USDT Transfers Reflects Bargain-Hunting Activity
Blockchain data from Lookonchain revealed that more than $163 million in USDT was transferred to Upbit within an hour of the martial law announcement by South Korean President Yoon Suk Yeol. USDT, the leading stablecoin pegged to the U.S. dollar, is commonly used by traders to make significant cryptocurrency purchases, especially during volatile market conditions. This sudden influx hints at large-scale buying activity, likely aiming to capitalize on the dip in prices.
Bitcoin’s Flash Crash and Quick Recovery
Following the emergency martial law declaration, Bitcoin experienced a sharp drop in price, plummeting as low as $63,000 on Upbit. The rapid decline was a result of the heightened political uncertainty in South Korea. However, Bitcoin managed to recover quickly, rebounding to around $94,000. Despite this recovery, the price of Bitcoin on Upbit still trades at a slight discount compared to the global average of $95,800, underscoring the impact of local market conditions during periods of political instability.
Political Instability Drives More Investors Toward Bitcoin
The announcement of martial law and the political climate surrounding it has sparked concerns about censorship and government control. In response, many investors are increasingly turning to decentralized assets like Bitcoin, which are seen as more resistant to external interference. This shift in investor behavior has fueled increased market activity, especially on exchanges like Upbit, which sees significant trading volume in South Korea.
As the political situation in South Korea evolves, the potential for continued volatility in the crypto market remains. Large traders are expected to keep leveraging bottom-fishing strategies in the hopes of profiting from these market fluctuations.
